Iran Conflict: Federal Government keeping close tabs on situation, could revise strategies to safeguard Nigerian interests — Edun

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—Says government assessing impact on fuel prices, economy

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By Emma Ujah, Abuja

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The Federal Government has said it is closely monitoring global developments following the escalating tensions involving Iran, the United States and Israel, noting that it may introduce policy adjustments to protect the Nigerian economy and citizens.

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The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this in a statement issued in Abuja on Tuesday.

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The statement, signed by the Assistant Director of Information and Public Relations at the Ministry of Finance, Mrs. Uloma Amadi, did not specify the policy measures under consideration but said the government was reviewing options to mitigate potential economic shocks.

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According to the statement, the Federal Government remains committed to safeguarding Nigeria’s economic stability amid rising geopolitical tensions in the Middle East.

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“The Federal Government of Nigeria is closely monitoring escalating geopolitical tensions in the Middle East involving the United States, Israel and Iran, and remains committed to safeguarding Nigeria’s economic stability,” the statement said.

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It added that the Economic Management Team (EMT) is coordinating closely across fiscal, monetary and energy policy institutions to review policy options aimed at shielding households and businesses from external shocks.

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Edun emphasised that careful policy calibration would guide the government’s response to ensure that recent progress in macroeconomic stability, revenue mobilisation and economic growth is not undermined by external developments.

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He also assured that the government would continue to monitor the situation and adjust policies where necessary to minimise disruptions, sustain investor confidence and protect the welfare of Nigerians.

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The EMT, chaired by Edun, was said to have met to assess the potential impact of the conflict on Nigeria’s economy.

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The minister also presided over a coordination meeting on the Naira-for-Crude policy to review developments in the energy market and their domestic implications.

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According to the assessment presented at the meeting, the global situation remains fluid, with uncertainty driven by concerns over possible disruptions to critical energy supply routes, particularly the Strait of Hormuz, a major corridor for global oil shipments.

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The government identified three key channels through which the crisis could affect Nigeria’s economy.

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The first is volatility in crude oil and gas prices, which could drive increases in domestic prices of fuel, diesel, cooking gas and fertiliser.

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The second relates to capital flows and financial markets, where heightened geopolitical risks could lead investors to move funds to safer assets, potentially affecting capital inflows into emerging markets such as Nigeria.

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The third channel involves global logistics and supply chains, as disruptions to shipping and energy routes could raise international freight and logistics costs, placing additional pressure on domestic prices.

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The minister noted that prolonged instability could lead to further increases in the cost of goods and services, intensifying inflationary pressures and the cost of living.

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The EMT said it would continue to track developments across key macroeconomic indicators, including global crude oil prices, exchange rate movements, capital flows, financial market conditions, and implications for Nigeria’s fiscal outlook and external reserves.

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The government reiterated its commitment to maintaining economic stability while taking necessary steps to protect Nigerians from the impact of external shocks.

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