The Federal Government has said it will seek cheaper funding and stronger global financial support as mounting geopolitical tensions continue to pressure Nigeria’s economy.
This was disclosed in a media brief issued on Monday by the Special Adviser to the Minister of Finance and Coordinating Minister of the Economy on Media and Communications, Dr Ogho Okiti, ahead of the 2026 IMF and World Bank Spring Meetings in Washington, DC.
According to the statement, Nigeria is grappling with the economic fallout from the ongoing US–Israel–Iran conflict, which has disrupted global energy markets, tightened financial conditions, and triggered renewed inflationary pressures across economies.
The statement read, “The 2026 IMF/World Bank Spring Meetings take place at a moment of heightened global uncertainty… the shock compounds high fuel prices, increasing food costs, and broader inflationary pressures and places further strain on households and businesses.”
It added that while Nigeria had undertaken reforms to stabilise the economy, the external shock had come at a critical transition period, complicating efforts to sustain growth and improve living conditions.
The government noted that one of its key objectives at the meetings would be to push for “lower cost of capital for Nigeria and other developing countries” and “fairer global financial conditions” to ease fiscal pressures.
It further stated that Nigeria would also seek “additional support for economies navigating reforms and external shocks simultaneously,” as part of broader efforts to protect growth and stabilise the economy.
The statement highlighted that crude oil prices have risen sharply due to the conflict, with Nigeria’s Bonny Light crude climbing from about $70–$73 per barrel to above $110–$120.
While higher oil prices could boost government revenues and foreign exchange earnings, the Federal Government warned that the benefits are offset by rising domestic costs.
It said, “Petrol prices rose by over 50 per cent, from about N890–N900 to N1,260–N1,330,” while diesel prices surged by more than 70 per cent to around N1,550 per litre at peak levels.
The government identified three key transmission channels through which the crisis is affecting Nigeria, including rising energy prices, weakening capital flows, and increasing global logistics and import costs.
On capital flows, it noted that heightened geopolitical risks typically drive investors towards safe-haven assets, which could reduce inflows into emerging markets like Nigeria and tighten domestic financial conditions.
It also warned that disruptions to global shipping and energy supply routes could push up freight costs and worsen inflation through higher import prices.
Despite the challenges, the Federal Government maintained that Nigeria is entering the current crisis from a stronger position compared to previous shocks such as the COVID-19 pandemic and the Russia-Ukraine war.
It cited recent reforms, including the liberalisation of the foreign exchange market and the removal of subsidies, as measures that have strengthened macroeconomic fundamentals.
The statement noted that oil production has improved to about 1.86 million barrels per day, while policies such as the naira-for-crude initiative are being deployed to stabilise domestic fuel supply.
It also stated that the government would continue to maintain a liberalised foreign exchange regime to support capital flows, adding that Nigeria’s reclassification as a Frontier Market by FTSE Russell reflects growing investor confidence.
“The government is determined to grow the country’s macroeconomic stability and attract and scale investments required to lift millions out of poverty,” the statement said.
At the Spring Meetings, the minister, Wale Edun, is expected to engage with global financial institutions, investors, ratings agencies, and development partners to strengthen Nigeria’s economic position and attract investment.
The government said these engagements would focus on demonstrating policy credibility, reinforcing investor confidence, and positioning Nigeria as a resilient economy amid global uncertainty.
It added that beyond stabilisation, the next phase of Nigeria’s economic strategy would centre on scaling private investment, unlocking domestic capital markets, and driving job-rich growth.
“The government remains resolute… to maintain macroeconomic stability, attract investments to drive inclusive growth, and invest in human capital and social protection,” the statement said.
The PUNCH earlier reported that oil prices surged and stocks sank on Monday after US-Iran peace talks fell apart and Donald Trump announced a blockade of the strategic Strait of Hormuz, adding to fears for energy supplies from the Middle East.
