Lagos, Nigeria – June 16, 2025
The Centre for the Promotion of Private Enterprise (CPPE) has raised alarm over the potential economic impact of the escalating conflict between Israel and Iran, warning that Nigeria’s already fragile economy could face further pressure.
In a statement issued on Monday, the CPPE said the deepening Middle East crisis poses serious risks to global oil prices, trade routes, and investor sentiment, all of which could have a ripple effect on Nigeria’s economy.
“The ongoing conflict could trigger disruptions in oil supply chains and elevate geopolitical tensions, potentially pushing crude oil prices higher,” the CPPE noted. “While this may seem beneficial to oil-exporting nations like Nigeria, the broader implications such as capital flight, inflationary pressures, and disruptions in global trade could outweigh any temporary gains.”
The think tank also warned that heightened insecurity and external shocks could further erode Nigeria’s fiscal space and increase borrowing costs.
Furthermore, CPPE urged the Nigerian government to adopt a strategic economic response, including boosting local production, diversifying export markets, and creating buffers to absorb external shocks.
As global markets remain jittery amid the Israel-Iran conflict, economic observers are closely monitoring Nigeria’s exposure to global supply chains, oil price volatility, and international capital markets.
