March 11, (THEWILL) — The Federal Government says it is closely monitoring the escalating geopolitical tensions in the Middle East involving the United States, Israel and Iran, while taking proactive measures to shield Nigeria’s economy and reduce the impact of possible fuel price shocks.
This was disclosed in a statement issued on Tuesday by Mrs Uloma Amadi, the Assistant Director, Information and Public Relations at the Ministry of Finance, following a meeting of the Economic Management Team (EMT) chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
According to the statement, the EMT meeting was convened to assess the potential economic impact of the growing tensions in the Middle East and their implications for Nigeria’s economy.
Edun said the Federal Government would continue to closely monitor developments and adjust policy measures where necessary to minimise disruptions, sustain investor confidence and protect the welfare of Nigerians.
“The Federal Government will monitor the situation closely and adjust policy measures where necessary to minimise disruptions, sustain investor confidence, and protect the welfare of Nigerians”, he said.
The minister also chaired a Naira-for-Crude policy coordination meeting to review developments in global energy markets and their domestic implications. He noted that the situation in the Middle East remains fluid, with global market uncertainty driven by concerns over possible disruptions to critical energy supply routes, particularly the Strait of Hormuz, already contributing to volatility in crude oil prices and financial markets.
Edun explained that Nigeria’s integration with global commodity and financial markets means the crisis could affect the country through several key channels.
He identified three immediate transmission channels: volatility in crude oil and gas prices, shifts in capital flows and financial markets, and disruptions to global logistics and supply chains.
According to him, fluctuations in global energy markets are already pushing up domestic prices of petroleum products, including fuel, diesel, cooking gas and fertiliser. He added that heightened geopolitical risks could encourage investors to move towards safe-haven assets, potentially affecting capital flows into emerging markets such as Nigeria and impacting broader financial market conditions.
The minister also warned that disruptions to major shipping and energy supply routes could increase international freight and logistics costs, placing further upward pressure on domestic prices. He noted that sustained instability could lead to higher costs of goods and services, worsening inflationary pressures and raising the cost of living for Nigerians.
At the EMT meeting, ministers provided sector-specific updates on the evolving situation, and discussions recognised that the overall impact on Nigeria would largely depend on the duration and intensity of the conflict, particularly its effect on global oil supply and prices.
Edun said the EMT was closely monitoring key macroeconomic indicators, including global crude oil price movements, supply conditions, exchange rate developments, and their potential pass-through to domestic prices, capital flows and financial market conditions, as well as implications for Nigeria’s fiscal outlook and external reserves. He, however, noted that Nigeria was entering the period of global uncertainty from a position of strengthening economic fundamentals.
According to him, recent data showed that Nigeria recorded real Gross Domestic Product (GDP) growth of 4.07 percent in the fourth quarter of 2025, one of the strongest quarterly performances in more than a decade.
Edun said the growth reflects the positive impact of ongoing economic reforms and improved macroeconomic coordination by the government.
Meanwhile, President Bola Tinubu has directed the Presidential Initiative on Compressed Natural Gas (PiCNG) to deploy about 100,000 vehicle conversion kits nationwide to expand access to Compressed Natural Gas (CNG) as a cheaper and cleaner alternative to petrol.
The Executive Chairman of PiCNG, Ismael Ahmed, disclosed this after a closed-door meeting with the President on Tuesday at the Presidential Villa, Abuja.
Ahmed said the President sought an update on the progress of the initiative and measures being implemented to cushion the effects of rising global petroleum prices, particularly amid the tensions in the Middle East.
“The President wanted to know what we are doing at PiCNG to scale up the availability of gas across the country. He has given a direct mandate that we should immediately deploy about 100,000 conversion kits”, he said.
He explained that the kits would enable vehicle owners and tricycle operators to convert their engines from petrol to CNG, adding that the deployment would begin within the next two to three weeks.
Ahmed said conversion centres across the country would soon witness increased activities as large-scale vehicle conversions commence.
He added that the initiative was also accelerating infrastructure development to support gas and electric mobility across the country.
According to him, about 77 refuelling stations are currently at various stages of development nationwide, while Kano already has two Liquefied Compressed Natural Gas stations with additional daughter stations under construction.
Ahmed said the infrastructure rollout would extend along major transport corridors from Lokoja to Abuja, Kaduna and Zaria, and further to Kano and Maiduguri.
He also disclosed that the initiative was promoting electric mobility as part of the government’s broader clean energy transition, noting that partnerships with local and international manufacturers were underway to encourage the assembly of electric vehicles in Nigeria.
Ahmed added that the initiative was collaborating with the Rural Electrification Agency to deploy solar-powered charging stations in off-grid locations. He said President Tinubu expects the initiative to deliver quick results that will reduce transportation costs and improve mobility for Nigerians.
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