By Oluwakemi Kindness
Nigeria is ramping up crude oil production to shield its economy from fresh global shocks triggered by the ongoing conflict involving the United States, Israel, and Iran.
The Federal Government said output has risen to about 1.86 million barrels per day, as part of urgent efforts to boost foreign exchange earnings and stabilize government revenue amid rising global uncertainty.
In a statement issued on Monday by the Office of the Minister of Finance and Coordinating Minister of the Economy ahead of the IMF/World Bank Spring Meetings 2026 in Washington DC, the government says the move forms part of broader 2026 Fiscal Policy Measures designed to cushion the impact of the crisis.
The government noted that disruptions in global energy markets and tightening financial conditions have created new economic pressures, making increased oil production critical to Nigeria’s stability.
The statement adds that the country is also strengthening the Naira-for-Crude policy to support domestic fuel supply and prevent shortages that could further strain households and businesses.
Authorities said recent steps, including maintaining a liberalized foreign exchange market and reducing tariffs on key industrial inputs, are aimed at supporting local production and improving trade flows.
According to the statement, Nigeria is entering this period of uncertainty from a stronger position compared to previous shocks such as the COVID-19 pandemic and the Russia-Ukraine war, following reforms introduced since May 2023.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the global crisis is coming at a delicate time for the country.
“The shock comes on the back of recent economic reforms aimed at building the right foundations for lifting millions out of poverty. However, it compounds high fuel prices, rising food costs, and broader inflationary pressures,” he said.
The government added that its coordinated fiscal, monetary, and trade policy response is focused on maintaining economic stability while sustaining growth.
