Nigeria has raised concerns over mounting global economic pressures triggered by tensions in the Middle East, calling for greater international support as it navigates a critical phase of economic transition.
The country’s participation in the International Monetary Fund and World Bank Spring Meetings 2026, scheduled for April 13 to 18, was disclosed in a media brief issued by the Ministry of Finance on Monday, as global policymakers convene to address emerging economic risks and development challenges.
Leading Nigeria’s delegation, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the US/Israel-Iran conflict has disrupted global energy markets and fueled inflation, triggering economic shocks worldwide, including in Nigeria.
He noted that the shock comes at a critical time for Nigeria’s ongoing economic reforms, with rising fuel and food prices placing additional strain on households and businesses across the country.
Since the war started in March, crude oil prices have surged by between 35 and 50 per cent, with Bonny Light, Nigeria’s crude, rising from about $70–$73 to over $110–$120 per barrel.
On the domestic front, petrol prices have climbed above N1,260 to N1,330 per litre, while diesel has peaked at around N1,550, reflecting the broader impact of global market disruptions on the local economy.
While higher oil prices could boost Nigeria’s foreign earnings and fiscal revenues, the finance minister warned that the benefits are being offset by domestic pressures transmitted through three key channels: energy prices, capital flows, and logistics and import costs.
“Volatility in global energy markets is already influencing domestic energy-related commodities, with direct implications for prices and the standard of living of Nigerians.
“Heightened geopolitical risks often trigger shifts in global investment patterns, with investors moving toward safe-haven assets. These dynamics may affect capital flows into emerging markets, including Nigeria, as well as broader financial market conditions.
“Disruptions to major shipping and energy supply routes could raise international freight and logistics costs, which may translate into higher import costs and increased pressures on domestic prices,” Mr Edun explained.
Addressing the government’s response, Edun said Nigeria is now better prepared to manage economic shocks compared to previous crises such as the COVID-19 pandemic and the Russia–Ukraine war, citing reforms implemented since May 2023.
He stated that the government has increased oil production to 1.86 million barrels per day, strengthened the naira-for-crude policy to stabilise domestic fuel supply, maintained a liberalised foreign exchange market, and coordinated fiscal, monetary, and trade policies, including tariff reductions on key industrial inputs.
“These actions reflect a government focused on stabilisation, resilience, and growth continuity,” Mr Edun stated.
As chair of the Group of 24, the minister is advocating for lower borrowing costs, fairer global financial conditions, and increased support for developing economies navigating both reforms and external shocks.
He stressed that Nigeria requires greater support during its economic transition, as it faces the dual challenge of global economic shocks and domestic adjustments.
“Lower cost of capital for Nigeria and other developing countries, fairer global financial conditions that will help reduce the impact of external shocks on economies such as ours, additional support for economies navigating reforms and external shocks simultaneously,” the statement read.
Edun also expressed concern about how ongoing reforms will translate into tangible improvements in the welfare of Nigerians, particularly in light of rising inflation and its impact on household incomes and poverty reduction efforts.
“The government would appreciate the continued support of trusted partners such as the World Bank and the IMF and investors as we navigate the current headwinds,” he said, calling for sustained backing from global institutions.
He added that Nigeria’s reform programme is focused on achieving macroeconomic stability to attract the level of investment required to lift millions out of poverty.
According to the minister, the next phase of Nigeria’s economic strategy will prioritise scaling private investment, unlocking domestic capital markets, driving job-rich growth, and leveraging regional integration under the African Continental Free Trade Area.
“The government remains resolute and working harder to maintain macroeconomic stability, attract investments to drive inclusive growth, and invest in human capital and social protection,” he said.
