The Minister of Finance has said the ongoing US–Israel–Iran conflict has sparked significant external shocks, disrupting global energy markets, tightening financial conditions, and triggering fresh inflationary pressures across economies.
He made this known while speaking after the IMF/World Bank Spring Meetings, noting that the situation is unfolding at a time when Nigeria is implementing economic reforms aimed at lifting millions out of poverty.
According to him, the disruptions have driven up fuel prices, increased food costs, and intensified inflationary pressure on Nigerian households.
Edun, who led Nigeria’s delegation to the meetings, said that despite these challenges, the government remains focused on strengthening macroeconomic stability and attracting investments needed to support growth and reduce poverty.
Addressing members of the Nigerian delegation, he explained that crude oil prices have shown sharp volatility since the conflict began, rising by between 35 and over 50 per cent, largely due to disruptions around 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.
Despite the pressures, he told IMF delegates that Nigeria entered the current period of global uncertainty on a stronger footing compared to previous shocks such as COVID-19 and the Russia–Ukraine war.
He added that Nigeria would require increased support during this economic transition phase and is also pushing for additional measures to ease fiscal pressure and attract more investment.
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