The Federal Government of Nigeria has warned that escalating tensions in the Middle East could worsen the cost of living in the country if the crisis persists.

The government said it is closely monitoring developments involving the United States, Israel and Iran, noting that the situation could have significant implications for Nigeria’s economy due to its exposure to global commodity and financial markets.

This was disclosed in a statement issued on Tuesday by the Federal Ministry of Finance after a meeting of the Economic Management Team (EMT).

The EMT, chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, reviewed the potential economic impact of the conflict and possible policy responses.

According to the ministry, rising geopolitical tensions have already created uncertainty in global markets, particularly over possible disruptions to major energy supply routes such as the Strait of Hormuz.

Edun noted that Nigeria could feel the effects through fluctuations in crude oil and gas prices, shifts in capital flows and financial market conditions, as well as rising global shipping and logistics costs.

He warned that prolonged instability in the region could lead to increases in the domestic prices of petrol, diesel, cooking gas and fertiliser.

The minister added that disruptions to global shipping routes could also push up freight costs, which may eventually translate into higher prices of goods and services for Nigerian consumers.

However, the government assured that it will continue to closely monitor the evolving situation and take necessary policy measures to safeguard the country’s economic stability and protect households and businesses from external shocks.