Edun: US-Israel-Iran Conflict Fuels Nigeria's Inflation

During the IMF and World Bank spring meeting, Minister Edun revealed that the ongoing US–Israel–Iran conflict has significantly impacted inflation in Nigeria. This conflict has caused substantial external shocks, disrupting the global energy market and tightening financial conditions, which in turn has triggered fresh inflationary pressures across the Nigerian economy.

Edun noted that the situation arises as Nigeria implements economic reforms aimed at lifting millions out of poverty. He explained that crude oil prices have shown sharp volatility since the conflict began, rising between 35% to 50%, largely due to disruptions around the Strait of Hormuz.

The price of Bonny Light crude oil, similar to Nigeria's, has jumped to around $70-$73 per barrel, exceeding $110-$120. This volatility has directly affected domestic energy-related commodities, with petrol prices rising from ₦890 to ₦900 and then to ₦1,330, while diesel surged by 70% to ₦1,550 per liter.

Despite these pressures, Edun stated that Nigeria is entering a period of global uncertainty on a stronger footing compared to previous shocks, such as COVID-19 and the Russia-Ukraine war, and emphasized the need for increased support during this economic transition phase.