Economy
Nigeria’s Economy Strong Enough to Absorb Oil Market Shocks—Edun
By Adedapo Adesanya
The federal government has begun assessing the potential economic implications of the escalating geopolitical tensions in the Middle East and adjusting policies to shield Nigeria from possible disruptions.
This was disclosed by the Minister of Finance, Mr Wale Edun, as the Economic Management Team (EMT) convened to evaluate the risks posed by the US-Israel-Iran standoff to global energy routes, such as the Strait of Hormuz.
He said Nigeria’s robust 4.07 per cent real GDP growth in Q4 2025 positions the country to weather looming oil market shocks from Iran tensions.
Mr Edun, who chairs the EMT, in a statement issued on Tuesday by the Assistant Director for Information and Public Relations in the ministry, Uloma Amadi, said the government was closely monitoring developments and remained committed to safeguarding Nigeria’s economic stability.
The EMT moved to review the potential impact of the unfolding crisis on the Nigerian economy.
Mr Edun also chaired a Naira-for-Crude policy coordination meeting to evaluate developments in the global energy market and their possible domestic implications.
The government noted that the situation remained fluid, with global markets already showing signs of uncertainty amid concerns about potential disruptions to critical energy supply routes, particularly the Strait of Hormuz.
Such disruptions, it said, could lead to volatility in crude oil prices and financial markets worldwide.
Given Nigeria’s integration into global commodity and financial markets, the government identified three major channels through which the crisis could affect the domestic economy.
These include crude oil and gas prices, capital flows and financial market conditions, as well as global logistics and supply costs.
The statement noted that volatility in global energy markets was already pushing up the prices of key commodities, with possible implications for domestic fuel, diesel, cooking gas, and fertiliser costs.
It added that heightened geopolitical risks could also lead to a shift by global investors toward safe-haven assets, potentially affecting capital inflows into emerging markets, including Nigeria.
In addition, disruptions to major shipping and energy supply routes could increase international freight and logistics costs, thereby exerting upward pressure on domestic prices.
The Minister of Finance noted that, beyond these immediate effects, sustained instability in the region could lead to higher prices for goods and services, further intensifying inflationary pressures and the cost of living.
During the EMT meeting, ministers provided sector-specific updates on the evolving situation, with discussions focusing on the likely scale of impact on Nigeria depending on the duration and intensity of the conflict.
Particular attention was placed on how developments in the global oil market could influence Nigeria’s fiscal outlook and external reserves.
The government said the Economic Management Team is closely monitoring key macroeconomic indicators, including global crude oil prices, exchange rate developments, and their potential impact on domestic prices.
It is also tracking capital flows, financial market conditions and broader implications for Nigeria’s fiscal position.
Despite global uncertainty, the Federal Government said Nigeria is entering the period from a position of strengthened economic fundamentals.
It cited recent economic data showing that the country recorded a real Gross Domestic Product growth of 4.07 per cent in the fourth quarter of 2025, one of the strongest quarterly performances in more than a decade.
According to the statement, the growth reflects the impact of ongoing economic reforms and improved macroeconomic coordination.
The government said it remains committed to protecting these gains and ensuring that recent progress in economic stabilisation and revenue mobilisation is not undermined by external shocks.
To achieve this, the Economic Management Team is maintaining close coordination across fiscal, monetary and energy policy institutions.
Policy options are also being kept under continuous review to mitigate potential volatility and protect households and businesses from the possible spillover effects of the global crisis.
Mr Edun emphasised that careful policy calibration would remain central to the government’s response to evolving global developments.
By Adedapo Adesanya
Three securities weakened the NASD Over-the-Counter (OTC) Securities Exchange by 1.01 per cent on Tuesday, June 23, dragging the market capitalisation down by N25.91 billion to N2.544 trillion from Monday’s N2.570 trillion. Also, the NASD Security Index (NSI) decreased by 43.17 points to 4,239.34 points from 4,282.51 points.
The triplet price losers were Central Securities Clearing System (CSCS) Plc, which gave up N4.82 to trade at N75.00 per unit versus Monday’s closing price of N79.82 per unit. NASD Plc depreciated by N3.70 to close at N33.30 per share compared with the preceding day’s N37.00 per share, and Nitrox Industrial Gases Plc marginally lost 1 Kobo to sell at N21.41 per unit, in contrast to the previous session’s N21.42 per unit.
Tuesday’s trading data showed that the volume of securities traded by investors retreated by 35.9 per cent to 211,671 units from 330,034 units, and the value of securities fell by 82.9 per cent to N5.6 million from N32.7 million, while the number of deals doubled to 38 deals from 19 deals.
At the close of trades, Great Nigeria Insurance (GNI) Plc was the most traded stock by value on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units valued at N6.5 billion, and CSCS Plc with 68.1 million units transacted for N4.7 billion.
GNI Plc also closed the trading day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, trailed by Infracredit Plc with 2.3 billion units exchanged for N6.5 billion, and Resourcery Plc with 1.1 billion units sold for N415.7 million.
By Adedapo Adesanya
A 0.11 per cent or N1.53 loss was recorded by the Nigerian Naira against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Tuesday, June 22, closing at N1,370.64/$1 compared with the previous day’s value of N1,369.11/$1.
However, the domestic currency appreciated against the Pound Sterling in the official FX window during the session by N4.69 to trade at N1,810.75/£1 versus the previous day’s N1,815.44/£1, and gained N5.37 on the Euro to sell at N1,561.02/€1 versus Monday’s exchange rate of N1,566.39/€1.
At the black market segment, the Naira traded flat against the Dollar yesterday at N1,395/$1, and at the GTBank forex desk, it also closed flat at N1,380/$1.
Daily FX update from the Central Bank of Nigeria (CBN) indicated that forex liquidity improved, but dollar volume was surpassed by strong dollar outflows on Tuesday.
Interbank FX turnover among financial institutions and market makers experienced a significant surge, reaching $125.314 million across 106 deals at the official window, 92 per cent higher than the $65.206 million the previous day, highlighting robust market activity and growing investor confidence.
Also, Nigeria’s foreign reserves continue to grow, reaching $51.142 billion, up from $51.060 billion reported the previous day, according to the CBN’s latest update.
In the cryptocurrency market, digital currencies fell amid heavy selling in technology stocks, which kept pressure on risk assets worldwide. Also, the gauge of the Dollar climbed to a seven-month high as investors moved toward safer assets.
Leading the losers was Cardano (ADA), as it slid 2.1 per cent to $0.1511. Dogecoin (DOGE) lost 1.3 per cent to quote at $0.0789, Ethereum (ETH) shrank 0.9 per cent to $1,673.38, Ripple (XRP) declined by 0.7 per cent to $1.10, TRON (TRX) also fell by 0.7 per cent to $0.3285, Solana (SOL) dipped by 0.3 per cent to $69.83, Bitcoin (BTC) went down by 0.2 per cent to $62,756.99, and Binance Coin (BNB) tumbled by 0.01 per cent to $579.20, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
By Aduragbemi Omiyale
Dangote Petroleum Refinery and Petrochemicals has refuted allegations that its premium motor spirit (PMS), otherwise known as petrol, exported to other countries, is being re-imported into Nigeria.
It was claimed that the private crude oil refiner sells PMS to other African nations, especially Togo, at a lower price to the extent that when re-imported into the country, it is still cheaper than what Dangote Refinery sells to Nigerian marketers.
Reacting via a statement on Tuesday night, the management described the allegations as “baseless and unsubstantiated” because they are not “supported by verifiable trade data, commercial logic, or the operational realities of Dangote Refinery.”
The company noted that its core mandate is to strengthen domestic supply and remains a leading provider of petroleum products in Nigeria.
“Any practice that enables imports to compete directly with its own production clearly contradicts this objective,” it stated.
Dangote Refinery said “all sales contracts and tender agreements expressly prohibit the resale or re-importation of Dangote Refinery products into Nigeria,” emphasising that “the economics of the purported trade route are fundamentally flawed.”
The organisation stated that estimated logistics costs for transporting products from the refinery to Lomé and back into Nigeria range between $82–90 per metric ton. Such additional costs would significantly erode margins and render the transaction commercially unviable.
“Dangote Refinery does not provide export discounts sufficient to offset these costs or create arbitrage opportunities between export and domestic markets. Simply put, no rational producer would incur additional shipping, storage, financing, and handling costs only for products to re-enter and compete in its primary market,” it pointed out.
The management also highlighted that the refinery maintains stringent product traceability protocols, including detailed records of lifting points, nominated vessels, counterparties, and declared destinations. These measures ensure full visibility and accountability across the supply chain.
The statement insisted that any “claim suggesting that the refinery facilitates or tolerates re-importation is inconsistent with its contractual safeguards and established compliance standards.”
The refinery said it has consistently advocated for reducing Nigeria’s dependence on imported petroleum products, underscoring that encouraging or enabling re-importation would undermine local refining efforts, strain foreign exchange reserves, and weaken national industrial growth, positions that are contrary to its core objectives.
Dangote Refinery reiterated that there is no strategic, economic, or operational basis for the claim that it exports products for re-importation into Nigeria, stressing that the allegation is entirely unfounded and does not withstand scrutiny when measured against market logic, contractual frameworks, and industry practices.
The statement concluded that “Dangote Refinery remains focused on its mission to enhance energy security, support local refining, and contribute meaningfully to Africa’s industrial development.”
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