Global Investment Risks Rise Amid Middle East Tensions

Stakeholders, including Dr. Muda Yusuf, Director of the Central Promoting Private Enterprise, have raised concerns about a potential decline in global investment due to ongoing tensions in the Middle East, particularly the conflict involving the United States, Israel, and Iran.

As the conflict enters its second month, disruptions in the Strait of Hormuz have pushed crude oil prices above $100 per barrel, affecting global energy markets. Yusuf noted that prolonged crises would heighten investment risks and weaken capital inflows, prompting investors to seek safer assets like gold.

Segun Ajayi Kadir, Director General of the Manufacturers Association of Nigeria, highlighted Nigeria's heavy reliance on imported petroleum products, which exposes the economy to external shocks. He called for strengthening domestic refining capacity to achieve energy security and reduce import dependence.

Kadir urged the government to create an enabling environment for local refineries and improve regulatory oversight to stabilize fuel supply and costs.