Figures cited by **The Punch** show that the Intergovernmental Group of Twenty-Four (G24) has warned of significant economic disruptions for Nigeria and other emerging markets due to the ongoing war in the Middle East. The group noted that the conflict is causing volatility in global liquidity and commodity prices, which directly impacts Nigeria’s budgetary oil benchmarks.
The G24’s concerns were echoed during the Spring Meetings of the IMF and World Bank, where experts pointed out that while oil prices are high, demand disruptions and rising shipping costs are offsetting the gains for African producers. This “Bank-Sovereign Nexus” is making bond markets fragile and limiting the policy space for the Nigerian government to react to domestic inflation.
The **IMF** noted in a press briefing that “the conflict has generated bouts of volatility,” while **BusinessDay** analyzed how “Nigeria isn’t over-borrowed — it’s overburdened” by the rising cost of servicing debt in an unstable global market.
**Echotitbits take:** Nigeria is caught in a classic “Dutch Disease” trap where high oil prices don’t necessarily lead to prosperity due to high import costs and debt interest. The government may need to revise its 2026 budget oil benchmark if the Middle East crisis continues to disrupt supply chains.
Source: The Punch – https://punchng.com/meast-war-disrupting-economic-growth-in-nigeria-others-g24/, April 15, 2026
Photo credit: The Punch
