Middle-East Crisis Could Set Back Nigeria’s Economic Gains, APC Warns

The Lagos State Chapter of the All Progressives Congress (APC) has raised concerns over the evolving crisis in the Middle East, warning against potential implications for Nigeria’s economic stability and recovery.

The Lagos APC noted that the Middle East conflict, though external to Nigeria, has the potential to negatively affect the nation’s economic recovery and may constitute a setback to some of the recent macroeconomic gains.

In a statement by its spokesperson, Seye Oladejo, on Wednesday, the party said it has been observing closely the unfolding developments in the Middle East and the broader implications they hold for global stability and economic recovery across many nations, including Nigeria.

It further noted that while the situation continues to evolve, it is important to acknowledge that the ongoing conflict unfortunately poses a negative impact on Nigeria’s economic recovery efforts.

The party also stated that the instability in a region that plays a central role in global energy supply and international trade has created fresh uncertainties in global markets, affecting commodity prices, investment flows, and overall financial stability.

It further pointed out that disruption in the global supply chain may place additional pressure on inflation, lamenting that Nigeria has just begun recording encouraging signs of macroeconomic stabilisation.

“For Nigeria, which has only recently begun to record encouraging signs of macroeconomic stabilisation, the crisis represents a significant external shock and a potential setback to some of the gains recorded in recent months.

“Disruptions in global supply chains, volatility in energy markets, and rising costs in international trade may place additional pressure on inflation, exchange rate stability, and fiscal planning,” the party said in a statement.

The party, while noting that fluctuations in global crude oil prices may present short-term revenue opportunities for oil-producing nations, lamented that such gains are often offset by broader economic pressures, including higher import costs, global inflationary trends, and increased uncertainty for investors.

It stressed that these realities underline the complex nature of the global economic environment and the need for cautious and strategic policy responses.

The Party further reiterated the importance of careful economic management and proactive policy measures to mitigate the potential impact of these external shocks, stressing that continued efforts toward economic diversification, strengthening domestic production, fiscal discipline, and structural reforms remain vital in building Nigeria’s resilience against global crises beyond our control.

The Lagos APC commend the Federal Government on its ongoing efforts to stabilise the economy and implement reforms aimed at restoring investor confidence and improving fiscal sustainability.

“We also take pride in the sound judgment and strategic direction demonstrated by the government’s economic management team in navigating the complex challenges confronting the nation,” it added.

The party urged support and understanding of the general public, the private sector, and all relevant stakeholders as the Federal Government implements measures to absorb and ameliorate the effects of this unforeseen global development.

It also urged the international community to intensify diplomatic engagements aimed at de-escalating tensions in the Middle East, as global peace and stability remain indispensable for sustained economic growth and development.