Nigeria’s economy is facing renewed strain as global tensions involving the United States, Israel, and Iran trigger significant disruptions across energy markets, Finance Minister Wale Edun has said.
Speaking at the recently concluded IMF/World Bank Spring Meetings, Edun warned that the escalating conflict has introduced fresh external shocks, tightening global financial conditions and fueling inflationary pressures, particularly in developing economies like Nigeria.
According to the minister, the impact is already evident in rising fuel and food prices, placing additional burdens on Nigerian households at a time when the government is implementing reforms aimed at lifting millions out of poverty.
Edun, who led Nigeria’s delegation to the meetings, noted that crude oil prices have experienced sharp volatility since the onset of the conflict, largely due to disruptions in the Strait of Hormuz—a critical global oil transit route.
He disclosed that Nigeria’s Bonny Light crude surged from an average of $70–$73 per barrel to peaks exceeding $110–$120, reflecting a spike of between 35 and 50 percent.
The ripple effects have been immediate and severe domestically. Petrol prices have risen by more than 50 percent, climbing from about ₦890–₦900 per litre to between ₦1,260 and ₦1,330. Diesel prices have increased even more sharply, surging by over 70 percent from approximately ₦1,100 per litre to about ₦1,550 at peak levels.
“Volatility in global energy markets is already influencing domestic energy-related commodities, with direct implications for prices and the standard of living of Nigerians,” Edun stated.
Despite the mounting challenges, the minister emphasized that Nigeria entered the current period of global uncertainty with stronger economic fundamentals compared to previous shocks such as the COVID-19 pandemic and the Russia–Ukraine war.
He added that the government remains focused on stabilizing the macroeconomic environment while intensifying efforts to attract and scale investments critical to economic growth and poverty reduction.
Edun also stressed the need for increased international support during Nigeria’s economic transition, noting that the country will continue to advocate for measures aimed at easing fiscal pressures and sustaining reform momentum.
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