ECONOMIC RISKS FROM MIDDLE EAST TENSIONS

SBM intelligence and other analysts are warning that the ongoing conflict between israel and iran could undermine global investor confidence, posing risks to nigeria’s foreign direct investment and investment inflows .

Given africa’s dependence on stable macroeconomic trends, nigeria could be hit hard if tilted global markets turn volatile . further complicating matters, crude oil prices have surged to around $77 per barrel—nigeria’s highest this year—exceeding the government’s 2025 budget benchmark of $74.55 .

While higher oil revenue may boost short-term fiscal capacity, it also heightens inflation risk and creates greater exposure to future market instability .

Analysts urge prudent use of this windfall to build sovereign buffers, diversify the economy, and strengthen resilience against external shocks.