Middle-East Crisis: Expert Warns Nigeria Faces Rising Economic Risks
Economic Alarm Over Middle-East Tensions
GROWING instability in the Middle East is sending warning signals across global markets, with implications that could significantly impact Nigeria’s fragile economy.
Economic expert Joe Nwakwue has cautioned that without immediate and structured government action, the country risks absorbing severe economic shocks from the crisis.
The CEO of Zera Advisory and Consulting Ltd. made the remarks during an interview in Lagos, emphasising that the unfolding situation is already affecting supply chains and commodity pricing worldwide.
Ripple Effects on Key Sectors
Nwakwue explained that disruptions in global supply networks are pushing up costs across industries, with Nigeria particularly vulnerable due to its reliance on imported petroleum products.
Higher global prices, he said, would inevitably increase transportation costs, raise production expenses, and drive inflation.
The cumulative effect, he warned, could place additional strain on households and businesses already grappling with economic pressures.
Need for Clear Policy Direction
Central to his recommendation is the development of a structured intervention framework.
Rather than implementing reactive, short-term fixes, the government must establish clear economic triggers for action, define policy objectives, and set timelines for implementation and withdrawal.
Such discipline, he argued, is essential to avoid market distortions and protect public finances.
Managing Forex and Energy Pressures
The analyst pointed to the “naira-for-crude” arrangement as a practical measure to mitigate foreign exchange volatility and stabilise local fuel prices.
He noted that this approach could help reduce dependence on foreign currency for petroleum imports while providing some insulation from global price shocks.
Turning Crisis Into Opportunity
While the outlook remains uncertain, Nwakwue believes the situation offers Nigeria a critical opportunity to rethink its economic model.
He called for urgent efforts to diversify energy sources, strengthen local production, and reduce reliance on imports.
“This is a moment for strategic recalibration,” he said, urging policymakers to act decisively.
Warning Against Inaction
Nwakwue warned that failure to respond effectively could have lasting consequences for economic stability.
“The cost of inaction or poorly timed intervention could be severe,” he said, stressing the need for transparent, well-planned, and time-bound policies.
