The Chartered Institute of Bankers of Nigeria (CIBN) has urged the Federal Government to adopt a multi-layered approach to curb the impacts of the United States-Iran war.

Speaking yesterday at the 19th annual banking and finance conference in Abuja, President/Chairman of Council, CIBN, Dr Dele Alabi, said the pass-through effects of the war are negatively impacting the Nigerian economy.

He listed volatile crude oil and gas prices, higher costs of petrol, diesel, cooking gas and fertiliser, rising freight and logistics costs, exchange-rate pressure, and shifts in capital flows as direct impacts.

To minimise the impacts, he called for closer coordination of fiscal, monetary and energy policies.

According to him, the government must support domestic production and food supply, and provide more targeted social protection for vulnerable households.

He noted that certain policies implemented in the past couple of years are beginning to yield fruit.

Alabi particularly lauded the give-to of the Central Bank of Nigeria (CBN), Yemi Cardoso, for steering the bank recapitalisation exercise that left the sector stronger without casualties, saying that with ₦4.65 trillion in new capital raised, it provides a further buffer against domestic and external shocks.

He noted Moody’s Ratings changed Nigeria’s outlook from stable to positive, while affirming the sovereign rating at B3.

He also added that FTSE Russell’s March 2026 Semi-Annual Country Classification Review indicated that Nigeria will be reclassified from Unclassified to Frontier market status, effective 21 September 2026.

“Collectively, these are all important signals of stronger macroeconomic stability, improving investor confidence and the prospect of broader access to global capital.

Yet they are milestones, not the destination,” he stated.

However, he quickly pointed out that whether stronger fundamentals translate into lower living costs, more jobs, higher real incomes, affordable credit, reliable public services, and reduced poverty remains to be seen.

He argued that macroeconomic progress must be felt at the micro level, such as in households, small businesses and the daily lives of ordinary Nigerians.

The CIBN boss stressed that it is important for the next phase of reform to focus on transmission – moving stability from national balance sheets to business balance sheets and household budgets.

He further stated that MSMEs are central to employment, enterprise and local value creation, lamenting that many remain constrained by high operating costs, unreliable infrastructure, limited access to markets, low productivity, skills gaps and slow digital adoption.

In his goodwill remarks, the Managing Director of Nigeria Deposit Insurance Corporation (NDIC), Thompson Oludare Sunday, said that while rapid technological advancement, cyber risks, and climate-related concerns present significant challenges, they also create opportunities for innovation, growth, and greater financial inclusion.

Indeed, he submitted that as the institution mandated to protect depositors’ funds and contribute to financial system stability, the NDIC recognises that resilience extends beyond the ability to withstand shocks.

He added that it requires strong institutions, sound risk management practices, effective corporate governance, operational preparedness, and the capacity to adapt to emerging risks while maintaining public confidence.

He declared that the NDIC’s collective responsibility is to ensure that innovation strengthens the safety, soundness, and integrity of the financial system.