Agency News
Barbara Bako, Abuja
The Federal Government has warned that rising global tensions are worsening inflationary pressures in Nigeria, as it prepares to engage international stakeholders at the 2026 IMF/World Bank Spring Meetings in Washington, D.C.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the ongoing US–Israel–Iran conflict has triggered significant disruptions in energy markets, tightened global financial conditions and introduced fresh inflation risks across economies.
He stated this at the ongoing IMF/World Bank Spring Meetings 2026 media briefing.
Edun noted that the development comes at a critical period for Nigeria, which is undergoing economic reforms aimed at stabilising the economy and lifting millions out of poverty.
“In Nigeria, Edun says that the government is trying to accelerate economic growth in a difficult environment shaped by external shocks and domestic price and inflation pressures,” the statement said.
The minister added that the government remains committed to strengthening macroeconomic stability and attracting investments despite the challenges.
The government said crude oil prices have risen sharply since the onset of the conflict, with Nigeria’s Bonny Light crude increasing from about $70–$73 per barrel to highs above $110–$120.
It, however, noted that while higher prices could boost revenues, the impact on domestic costs remains significant.
“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 said.
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According to the government, petrol prices have risen by over 50 per cent to between N1,260 and N1,330 per litre, while diesel prices surged by more than 70 per cent to about N1,550 per litre at peak levels.
The statement also highlighted risks to capital inflows as investors move toward safer assets, as well as rising global logistics costs that could further increase import prices.
Despite the pressures, the Federal Government said Nigeria is entering the period from a stronger position due to reforms implemented since 2023.
“Nonetheless, the Federal Government emphasises that Nigeria enters this period of global uncertainty from a position of strengthened economic fundamentals compared to recent economic shocks,” the statement said.
It listed ongoing measures to include efforts to boost oil production to 1.86 million barrels per day, sustain the naira-for-crude policy, and maintain a liberalised foreign exchange regime.
The government added that recent tariff adjustments are aimed at supporting production and expanding trade.
At the meetings, Edun is expected to push for stronger international support for Nigeria and other developing economies facing similar shocks.
“That Nigeria is facing global economic shocks and domestic adjustments at the same time,” the statement noted, adding that the minister will advocate measures to ease fiscal pressures and support growth.
The statement added that Nigeria would also engage with officials of the International Monetary Fund and World Bank, as well as investors and development partners, to strengthen economic cooperation.
Edun stressed that the government’s priority remains ensuring that reforms translate into improved living conditions for Nigerians amid rising inflationary pressures.
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Abubakar Siddiq Ibn Usman