According to the All Progressives Congress (APC) in Lagos State, Nigeria’s already-fragile economic recovery could take a hit if the crisis in the Middle East continues to escalate.
Seye Oladejo, spokesman for the All Progressives Congress (APC) in Lagos, released a statement on Tuesday in which the party warned that regional developments, although recent macroeconomic advances, could jeopardise the country’s economic stability.
Even though the crisis is happening outside of Nigeria, the party claims that it could undermine the country’s economic success due to the conflict’s global impact.
“The Lagos APC acknowledges that the ongoing conflict in the Middle East, although being external to Nigeria, could pose a threat to our economic recovery and could reverse some of the recent gains in the macroeconomy,” the party stated.
Noting its heightened vigilance over regional and global economic stability-related issues, the party made its presence known.
New uncertainties have been added to global markets as a result of the instability in the Middle East, which is a critical region for energy supply and international trade.
Global markets have been impacted by the instability in a region that is crucial for energy supply and international trade. This has led to new uncertainties, which in turn have an effect on commodity prices, investment flows, and overall financial stability, according to the statement.
The Lagos APC issued a dire warning, saying that the crisis might be a major setback for Nigeria’s economy, which has just lately started to show indications of stability.
Inflation, currency rate stability, and budgetary planning could be further tested by supply chain interruptions, energy market volatility, and increasing international trade costs.
Higher global crude oil prices could temporarily increase revenue for oil-producing nations, but the party warned that there are often broader economic challenges that come with such gains.
“Investors face more uncertainty, higher import costs, and global inflationary trends, even though oil-producing nations may see short-term revenue opportunities from fluctuations in global crude oil prices,” the statement said.
As a result, the Lagos APC demanded cautious fiscal management and prompt governmental actions to mitigate the crisis’s impact.
In order to make Nigeria more resistant to outside shocks, the report emphasised the need of maintaining efforts to diversify the economy, boost local output, enforce fiscal discipline, and implement structural reforms.
The Bola Tinubu administration has been working to strengthen the economy and restore investor confidence through reforms, which the party has praised.
The statement praised the federal government for its continuous attempts to stabilise the economy and restore investor confidence through policies that improve fiscal sustainability.
In light of recent events around the world, the APC has called on the general people, businesses, and other interested parties to back government initiatives aimed at reducing their negative effects.
“Effectively navigating these challenges while sustaining the momentum of economic recovery will require collective patience, cooperation, and commitment from all Nigerians,” it concluded.
The party emphasised the importance of global peace for long-term economic growth and urged the international community to step up diplomatic efforts to reduce tensions in the Middle East.
In a statement, the Lagos State Chapter of the All Progressives Congress reaffirmed its support for measures that would safeguard Nigeria’s economic interests, fortify the country’s ability to weather short-term global storms, and guarantee that the country’s long-term trajectory toward sustainable development and prosperity would not be derailed.