War: Middle East tensions may undermine Nigeria’s economic recovery – Lagos APC
Lagos APC Raises Concerns Over Middle East Crisis and Economic Stability
The All Progressives Congress (APC) in Lagos State has voiced alarm regarding the ongoing crisis in the Middle East, warning it may jeopardize Nigeria’s fragile economic recovery.
In a statement released on Tuesday, spokesman Seye Oladejo underscored the potential repercussions of the conflict for Nigeria, despite some recent macroeconomic improvements. The party emphasized that while the turmoil is external, its global impact could disrupt local economic progress.
“The Lagos APC notes that the Middle East conflict, though external to Nigeria, has the potential to negatively affect our economic recovery and may constitute a setback to some of the recent macroeconomic gains,” the statement read.
The party highlighted its vigilant monitoring of the situation in the Middle East and its broader implications for global economic conditions. It pointed out that the region’s instability, being a crucial hub for energy supply and international trade, has already introduced new uncertainties into global markets.
“The instability in a region that plays a central role in global energy supply and international trade has created fresh uncertainties in global markets, affecting commodity prices, investment flows, and overall financial stability,” the statement continued.
According to the Lagos APC, Nigeria’s recent signs of macroeconomic stabilization could be at risk from this crisis, which could serve as a significant external shock.
The party expressed concern that disruptions to global supply chains, fluctuations in energy markets, and rising international trade costs could exacerbate inflation, destabilize exchange rates, and complicate fiscal planning.
While acknowledging the potential for higher global crude oil prices to provide short-term revenue boosts for oil-producing nations, the APC cautioned that these gains could be offset by broader economic challenges.
“Although fluctuations in global crude oil prices may present short-term revenue opportunities for oil-producing nations, such gains are often offset by broader economic pressures including higher import costs, global inflationary trends, and increased uncertainty for investors,” the statement concluded.
The Lagos APC called for careful management of the economy and proactive policy responses to mitigate the effects of the crisis. It stressed the importance of ongoing economic diversification, boosting domestic production, maintaining fiscal discipline, and implementing structural reforms to enhance Nigeria’s resilience against external shocks.
The party commended the administration of President Bola Tinubu for its efforts to stabilize the economy and restore investor confidence. It encouraged collaboration among the public, private sector, and other stakeholders to support government initiatives aimed at addressing the global challenges.
“Collective patience, cooperation, and commitment from all Nigerians will be crucial in ensuring that the nation navigates these challenges effectively while sustaining the momentum of economic recovery,” the statement added.
Finally, the party urged the international community to intensify diplomatic efforts to de-escalate tensions in the Middle East, stressing that global peace is essential for sustainable economic growth.
“The All Progressives Congress, Lagos State Chapter, remains committed to supporting policies and initiatives that protect Nigeria’s economic interests, strengthen national resilience, and ensure that temporary global disruptions do not derail the nation’s long-term path toward sustainable growth and prosperity,” the statement concluded.
