The Federal Government has warned that the escalating geopolitical tensions in the Middle East could worsen the cost of living in Nigeria if the crisis persists.
The government said it is closely monitoring developments involving the United States, Israel and Iran, noting that the situation could have significant implications for Nigeria’s economy due to the country’s integration with global commodity and financial markets.
This was disclosed in a statement issued on Tuesday by the Federal Ministry of Finance.
According to the statement, the Economic Management Team (EMT), chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, convened a meeting to assess the potential economic impact of the crisis and review possible policy responses.
The minister also chaired a Naira-for-Crude policy coordination meeting to evaluate developments in the global energy market and their domestic implications.
The government explained that rising geopolitical tensions have already created uncertainty in global markets, particularly over possible disruptions to major energy supply routes such as the Strait of Hormuz.
