The Federal Government has said Nigeria is well-positioned to benefit from rising global oil prices while managing the economic risks associated with geopolitical tensions, particularly the ongoing crisis in the Middle East.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this in Abuja during the World Bank presentation of the Nigeria Development Update, noting that the government is focused on maximising revenue gains from higher crude prices.
He explained that Nigeria’s status as an oil-producing nation places it in a dual position of both opportunity and vulnerability. While increased oil prices boost government revenue, they also drive up costs across sectors, especially energy and food production.
Edun warned that rising global prices are already contributing to domestic inflation, with higher gas costs pushing up fertiliser prices and, in turn, food prices. He added that inflation remains a major concern amid ongoing global uncertainty.
The minister also noted that higher interest rates in advanced economies could worsen Nigeria’s economic outlook by increasing borrowing costs and debt servicing obligations. He said the Economic Management Team is actively assessing various global scenarios and advising the President on appropriate policy responses.
Despite these challenges, Edun maintained that Nigeria’s recent economic reforms have strengthened its resilience. He said oil production has improved to about 1.84 million barrels per day, which could significantly support government revenue if sustained.
He stressed that long-term growth would depend largely on private sector investment, noting that government alone cannot drive economic expansion or reduce poverty. He added that social intervention programmes would continue to support vulnerable populations.
Also speaking, Deputy Governor for Economic Policy at the Central Bank of Nigeria, Mohammed Sani Abdullahi, said the country is better prepared to withstand global shocks than at any time in the past decade.
He attributed this resilience to foreign exchange reforms that have improved transparency and boosted investor confidence, noting that Nigeria has avoided heavy spending to defend its currency, unlike some countries.
Abdullahi added that Nigeria’s external reserves remain strong, with increasing diversification of foreign exchange inflows, including remittances and non-oil sources, placing the country in a better position to absorb economic shocks.
Meanwhile, the World Bank said Nigeria’s economy has remained resilient despite global challenges, with growth expected to average about 4.2 per cent between 2026 and 2028.
However, it warned that inflation remains high and continues to erode household incomes, while poverty levels remain a concern despite ongoing reforms.
The report called for disciplined fiscal management, targeted social support, and sustained reforms to ensure that economic growth translates into improved living standards for Nigerians.
