Nigeria conducts emergency assessment of Middle East crisis as rising oil prices drive up domestic fuel costs and inflation pressure looms

⑴ Nigeria's Ministry of Finance stated on Wednesday that the government is closely monitoring the escalation of tensions in the Middle East and assessing the potential risks to the country's economic stability. Finance Minister Edun convened the economic management team to specifically review the impact of the US-Israel and Iran conflict on oil prices, capital flows, and logistics costs. ⑵ Volatility in the global energy market has already begun to transmit domestically. The Ministry of Finance warned that possible disruptions in the Strait of Hormuz are pushing up crude oil prices and will lead to higher domestic costs for fuel, diesel, liquefied petroleum gas, and fertilizers. If the situation remains unstable, inflation and living costs will face additional pressure. ⑶ Official data shows that Nigeria entered this period of turmoil with a strengthened economic foundation, with GDP growth of 4.07% in the fourth quarter of 2025. However, current risk points are concentrated: authorities are tracking fluctuations in crude oil prices, exchange rate pressures, capital flows, fiscal risks, and foreign exchange reserve levels. The government stated it will dynamically adjust policies to protect households and businesses and maintain investor confidence.