Nigeria Seeks Global Financial Support as Fuel Price Surge Threatens Economic Reforms

Nigeria plans to seek stronger financial support at the IMF-World Bank Spring Meetings as rising fuel prices—driven by the Iran conflict—intensify inflation and threaten economic reforms. Despite higher crude oil revenues, Finance Minister Wale Edun warned that living costs are increasing, while the government under Bola Tinubu continues reforms and prepares to secure at least $6 billion in foreign loans to support the economy and infrastructure.

Nigeria is set to push for increased international financial assistance at this week’s IMF-World Bank Spring Meetings, as rising fuel costs triggered by the Iran conflict put pressure on the economy and complicate ongoing reforms, the country’s finance minister said on Monday.
The surge in global crude oil prices has brought some advantages for Africa’s leading oil producer, particularly by boosting foreign exchange earnings, Finance Minister Wale Edun said in a statement ahead of the meetings in Washington. However, he warned that the situation presents challenges at a sensitive stage of economic transition.
According to Edun, the shock is intensifying inflationary pressures and increasing the cost of living for households across the country. Petrol prices in Nigeria have jumped by more than 50% to 1,330 naira ($0.9788) per litre, while diesel prices have risen by over 70% to 1,550 naira per litre since the conflict began, placing a heavy burden on both individuals and businesses.
The sharp rise in fuel costs threatens to undermine economic reforms introduced in 2023, which were designed to stabilise the economy and stimulate growth.
President Bola Tinubu has implemented one of the most far-reaching economic reform programmes in decades. These measures include removing expensive fuel and energy subsidies, devaluing the national currency, and overhauling the tax system in a bid to strengthen the country’s fiscal position.
At the ongoing meetings, Edun—who also chairs the G24 group of developing countries—said Nigeria would advocate for reduced borrowing costs, more equitable global financial conditions, and increased support for nations undertaking economic reforms.
Meanwhile, Nigeria’s benchmark Bonny Light crude has risen significantly, climbing from around $70–$73 per barrel before the conflict to over $120 per barrel currently, according to government figures.
Although inflation dropped sharply to 15.06% in February from approximately 33% in December 2024, it remains elevated compared to other countries in the region. The World Bank noted last week that inflationary pressures have begun to rise again since the onset of the conflict.
Edun stated that the government’s priorities include attracting private sector investment, generating employment opportunities, and sustaining economic growth, while also protecting vulnerable households from the impact of rising prices.
In addition, Nigeria is preparing to secure at least $6 billion in foreign loans to address economic and infrastructure challenges. The country’s legislature, the National Assembly, has already approved loan requests submitted by President Tinubu during separate sittings on March 31.
According to local media reports, the president requested approval to borrow $5 billion from First Abu Dhabi Bank and an additional $1 billion from United Kingdom Export Finance.
The Nigerian government indicated that a substantial portion of the funds will support the country’s $49.4 billion 2026 budget, which has also received legislative approval. Part of the loans will also be allocated to the rehabilitation of two major ports in Lagos, aimed at improving infrastructure and boosting economic activity.