Last Updated: March 14, 2026
Jimoh Ibrahim Says Middle East Conflict Could Boost Nigeria’s Economy
The senator representing Ondo South, Jimoh Ibrahim, has argued that the ongoing conflict in the Middle East presents a significant economic opportunity for Nigeria.
According to the lawmaker, rising oil prices triggered by geopolitical tensions could increase Nigeria’s revenue, stabilize the naira, reduce borrowing, and strengthen the country’s overall macroeconomic position.
Ibrahim made the remarks during an interview on Politics Today on Channels Television on Friday, where he assessed the economic implications of the Middle East crisis, particularly for oil and energy markets.
Higher Oil Prices Could Increase Dollar Inflows
When asked how the conflict could affect Nigeria in relation to grains and energy, Ibrahim explained that higher oil prices would bring more foreign exchange into the country.
“You will have more money; that’s one thing. It will reduce borrowing. The price of the dollar may initially rise, but when you sell more oil at higher prices, you get more dollars,” he said.
Nigeria relies heavily on crude oil exports for foreign exchange earnings. When global oil prices rise, the country typically earns more dollars, which can strengthen government finances.
CBN Could Stabilize the Naira With Increased Dollar Supply
Ibrahim explained that increased dollar inflows could empower the Central Bank of Nigeria to intervene in the foreign exchange market and stabilize the naira.
“That allows the central bank to intervene in the black market and stabilize rates, making dollars more available. Once that happens, the macroeconomic effect will improve because price stability promotes a sustainable economy arising from cash inflows, not borrowed funds,” he said.
According to the senator, increased dollar availability would help stabilize exchange rates and support broader economic stability.
Senator Praises Tinubu’s Debt Management Efforts
Ibrahim also commended the administration of Bola Tinubu for improvements in Nigeria’s debt management strategy.
“Right now, revenue-to-debt servicing is 68%. Kudos to Bola Tinubu. Before he came, a 96% GDP-to-revenue ratio went to debt management, meaning for every 100 naira, 96 naira went to debt. Now, you save about 38 naira in your pocket,” he said.
The senator argued that the government’s economic reforms have helped reduce pressure on public finances while improving fiscal sustainability.
Rising Oil Prices Could Strengthen Nigeria’s Macroeconomic Position
With oil prices rising sharply amid tensions in the Middle East, Ibrahim believes Nigeria is well positioned to benefit economically.
“With oil prices almost doubling, Nigeria has more dollars to stabilize the macroeconomic system. So, I don’t think there will be much of a problem,” he added.
Higher oil revenues could help Nigeria strengthen foreign reserves and reduce reliance on borrowing to fund government spending.
Rising Fuel Costs Could Still Affect Nigerians
Despite the potential benefits, Ibrahim acknowledged that the conflict could also bring domestic challenges.
Higher oil prices globally could lead to increased fuel prices locally, potentially raising transportation costs and putting pressure on the cost of living for Nigerians.
However, the senator expressed confidence that the government would be able to manage these challenges.
“Nigeria is a member of the geocentric system and cannot isolate itself. The government is considering policies to cushion potential impacts. They are capable of doing this because they are receiving significant revenue from crude oil,” he said.
What the Middle East Conflict Means for Nigeria
Nigeria’s economic fortunes are closely linked to global oil prices. When geopolitical tensions drive prices higher, oil-producing countries like Nigeria often see increased revenue.
However, economists caution that while higher oil prices can improve government earnings, they may also raise domestic inflation through higher fuel and transportation costs.
For Nigeria, the key challenge will be balancing these potential benefits and risks while maintaining economic stability.
Frequently Asked Questions
How could the Middle East conflict affect Nigeria’s economy?
The conflict could raise global oil prices. As a major oil exporter, Nigeria could earn more foreign exchange from crude oil sales.
Can higher oil prices strengthen the naira?
According to Jimoh Ibrahim, higher oil prices could increase dollar inflows into Nigeria, enabling the Central Bank of Nigeria to stabilize exchange rates.
Could the conflict also increase the cost of living in Nigeria?
Yes. Rising global oil prices can increase fuel costs, which may raise transportation expenses and overall living costs.
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