The Federal Government of Nigeria has cautioned that the escalating conflict in the Middle East could trigger new economic shocks for the country, warning of potential rises in energy prices, disruptions to global supply chains, and shifts in capital flows that may affect domestic stability.
The warning was highlighted in a statement issued by Uloma Amadi, Assistant Director of Information and Public Relations at the Federal Ministry of Finance.
According to the ministry, the government’s Economic Management Team (EMT) has begun assessing the potential impact of the crisis on Nigeria’s economy.
The EMT, led by Wale Edun, Minister of Finance and Coordinating Minister of the Economy, recently convened to evaluate the implications of rising tensions involving the United States, Israel, and Iran.
During the session, Edun also presided over a Naira-for-Crude policy coordination meeting, where officials reviewed developments in the global energy market and examined their possible domestic consequences.
Government officials identified three primary channels through which the Middle East crisis could affect Nigeria: Energy Prices – Instability in global crude oil and gas markets could lead to higher domestic costs for petroleum products and other energy-related inputs.
Financial Markets and Capital Flows – Geopolitical uncertainty typically pushes investors toward safer assets, which may reduce capital inflows into emerging markets such as Nigeria.
Global Supply Chains – Disruptions to key shipping routes or energy corridors could increase freight costs and place additional pressure on local prices.
The warning comes as the Islamic Revolutionary Guard Corps of Iran issued a statement threatening potential blockades of oil shipments through the strategic Strait of Hormuz.
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The IRGC’s Khatam al-Anbiya Headquarters spokesperson indicated that vessels associated with the United States, Israel, or their allies could become targets, warning that oil prices could spike to $200 per barrel if regional tensions escalate.
The Strait of Hormuz is a critical chokepoint in global energy trade, with roughly one-fifth of the world’s oil supply passing through the narrow waterway.
Analysts say that any disruption, combined with potential production cuts by Gulf producers, could intensify fears of a global energy supply shock, amplifying the economic risks for Nigeria and other oil-importing nations.
The Federal Government emphasized that it is closely monitoring the situation and is prepared to adjust economic policies where necessary to limit potential disruptions, maintain investor confidence, and safeguard the welfare of Nigerians.