Cardoso: Middle East Conflict Threatens Nigeria's Economy

Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), warned that the ongoing conflict in the Middle East, particularly between Iran and Israel, poses a significant risk to Nigeria's economic stability. Speaking at a monetary policy forum in Abuja on Thursday, Cardoso noted that the conflict has caused a dramatic rise in global crude oil prices, surpassing $100 per barrel, which has disrupted the Strait of Hormuz.

This surge in oil prices has contributed to a sharp increase in petrol prices in Nigeria, reaching N1,350 per liter. Despite Nigeria's efforts to build stronger reserves and a resilient banking system, challenges remain for economic growth.

Cardoso emphasized the need for the central bank to consolidate gains, particularly in steering inflation towards single-digit levels and sustaining exchange rate stability. He acknowledged that the global economic growth forecast of 3.3% for 2026 may be tempered by tight financial conditions and geopolitical tensions, which have already impacted Nigerian crude prices, pushing them above $110 per barrel.