The US–Israel–Iran conflict has triggered major external shocks, disrupting energy markets, tightening global financial conditions, and fueling renewed inflationary pressures across economies.
According to the Minister of Finance, Wale Edun, who spoke at the just-concluded IMF/World Bank Spring Meetings, the shocks come amid ongoing economic reforms aimed at lifting millions out of poverty.
He said the disruptions have led to high fuel prices, increased food costs, and rising inflationary pressures on Nigerian households.
The Minister of Finance, who led the Nigerian delegation to the meeting, said amid the challenges, the Nigerian government is working to improve the country’s macroeconomics and attract and scale investments required to lift millions out of poverty.
While addressing the Nigerian delegation, he noted that crude oil prices have experienced significant volatility since the start of the conflict, rising between 35% to over 50%, driven primarily by disruption in the Strait of Hormuz.
“Bonny Light, Nigeria’s kind of oil, jumped from around $70 – $73 a barrel to highs exceeding $110 – $120.
“Volatility in global energy markets is already influencing domestic energy-related commodities, with direct implications for prices and the standard of living of Nigerians.
“Petrol prices rose by over 50%, from about N890 – N900 to N1260 – N1330. Diesel prices surged by over 70%, from N1,100 per litre to about N1,550 at the peak,” Edun said.
In spite of the challenges, Wale Edun told IMF delegates that Nigeria entered the current period of global uncertainty from a position of stronger economic fundamentals compared to recent shocks such as the COVID-19 pandemic and the Russia–Ukraine war.
He noted that Nigeria requires a higher level of support during the ongoing economic transition and will also be advocating additional measures to reduce fiscal strain and attract investment.
