The federal government is closely monitoring escalating geopolitical tensions in the Middle East involving the U.S., Israel, and Iran and remains committed to safeguarding Nigeria’s economic stability.

This was disclosed in a statement by the finance ministry on Tuesday, following a meeting of the Economic Management Team, chaired by finance minister Wale Edun.

The meeting was convened to assess the impact of the escalating geopolitical tensions in the Middle East involving the U.S., Israel, and Iran.

”The federal government will monitor the situation closely and adjust policy measures where necessary to minimise disruptions, sustain investor confidence, and protect the welfare of Nigerians,” he said.

Mr Edun also chaired a naira-for-crude policy coordination meeting to review energy market developments and their domestic implications.

“The situation remains fluid, with global market uncertainty driven by concerns over disruptions to critical energy supply routes, particularly the Strait of Hormuz, already contributing to volatility in crude oil prices and financial markets.

The minister said that given the country’s integration with global commodity and financial markets, the government has identified three immediate transmission channels through which the crisis could affect the Nigerian economy.

The minister said that, beyond these immediate effects, sustained instability could drive up the cost of goods and services, placing further upward pressure on inflation and the cost of living.

Mr Edun said that the EMT was closely monitoring developments across key macroeconomic indicators, including: ”global crude oil price movements and supply conditions, exchange rate developments and potential pass-through to domestic prices.

“Capital flows and financial market conditions, the implications for Nigeria’s fiscal outlook and external reserves,” he said.

The minister said that the country was entering a period of global uncertainty from a position of strengthening economic fundamentals.

He said that recent data showed real GDP growth of 4.07 per cent in Q4 2025, one of the strongest quarterly performances in over a decade.

The minister said that the growth reflects the positive impact of ongoing economic reforms and improved macroeconomic coordination.

Mr Edun said that the government remains fully committed to protecting these gains.

The EMT, he said, is also maintaining close coordination across fiscal, monetary, and energy policy institutions, with policy options remaining under continuous review to mitigate volatility and shield households and businesses from external shocks.

Mr Edun said that careful policy calibration would remain central to the government’s response.

(NAN)