The All Progressives Congress (APC) in Lagos State has expressed alarm about the increasing Middle East situation, saying that it could harm Nigeria’s fragile economic recovery.
Seye Oladejo, the Lagos APC spokesman, warned in a statement on Tuesday that developments in the region may pose major hurdles to the country’s economic stability, despite recent financial advances.
Although the issue is taking place outside of Nigeria, the party believes that the conflict’s global influence will hamper the country’s 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 party’s statement added.
The party stated that it has been closely monitoring regional developments and their implications for global economic stability.
It noted that instability in the Middle East, a critical center for global energy supply and international trade, has already created new concerns in 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,” according to the statement.
The Lagos APC warned that for Nigeria, which has just lately began to show indications of macroeconomic stability, the situation might be a huge external shock.
It observed that interruptions to global supply chains, instability in energy markets, and increased international trade costs could put additional burden on inflation, currency rate stability, and fiscal planning.
While conceding that increased global crude oil prices may temporarily improve revenue for oil-producing countries, the party warned that such gains are generally accompanied by broader economic difficulties.
“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,” according to the report.
To mitigate the effects of the crisis, the Lagos APC advocated for prudent economic management and proactive policy solutions.
It emphasised the importance of sustained efforts to diversify the economy, improve domestic production, maintain fiscal discipline, and implement structural reforms to strengthen Nigeria’s resilience to external shocks.
The party also praised the Bola Tinubu administration’s efforts to stabilise the economy and execute measures aimed at restoring investor confidence.
“We commend the Federal Government for its ongoing efforts to stabilise the economy and implement reforms aimed at restoring investor confidence and improving fiscal sustainability,” according to a statement.