The Nigerian government is raising concerns over potential economic shocks resulting from the Middle East crisis

The Federal Government of Nigeria has warned that the escalating crisis in the Middle East could trigger a new economic shock for Nigeria through rising energy prices, disruptions in global supply chains and shifting capital flows.

Authorities said they were monitoring developments closely and were ready to adjust economic policies if necessary to limit potential disruption, maintain investor confidence and protect the well-being of Nigerians.

The warning was contained in a statement by Uloma Amadi, Assistant Director of Information and Public Relations at the Federal Ministry of Finance. According to the ministry, the government’s Economic Management Team has begun assessing the possible economic impact of this crisis.

The ministry revealed that the EMT led by the Minister of Finance and Coordinating Minister for the Economy, Wale Edun, recently met to evaluate the implications of escalating tensions involving the United States, Israel and Iran.

Edun also chaired a Naira-for-Crude policy coordination meeting where officials reviewed global energy market developments and their possible impact on the Nigerian economy.

Government officials identified three main channels through which the crisis could impact the country.

The first involves instability in global crude oil and gas markets, which could lead to increases in domestic costs for petroleum products and other energy-related inputs.

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The second relates to financial markets and capital movements. Increased geopolitical uncertainty usually encourages investors to choose safer assets, which can reduce capital inflows to developing countries such as Nigeria.

The third relates to global logistics and supply chains. Any disruption to key shipping routes or energy corridors could raise freight costs and put additional pressure on local prices.

Meanwhile, Iran’s Islamic Revolutionary Guard Corps has issued a warning that oil shipments passing through the strategic Strait of Hormuz could be blocked as tensions rise during the ongoing conflict between the United States and Israel.

A spokesman for the IRGC’s Khatam al-Anbiya Headquarters warned that ships connected to the United States, Israel or their allies could be targeted.

“You won’t be able to artificially lower oil prices. The forecast price for oil is $200 a barrel,” the spokesman said, adding that regional insecurity could push oil prices up sharply.

The Strait of Hormuz remains one of the most important choke points in global energy trade, with about a fifth of the world’s oil supply passing through the narrow waterway.

Analysts warned that any disruption to the corridor, coupled with output cuts from some producers in the Gulf region, could deepen fears of a new global energy supply shock.