The World Bank has predicted that Nigeria's economy will grow by about 4.2% in 2026 due to the ongoing U.S./Israel-Iran conflict, which has increased inflation but left output largely intact. The World Bank's lead economist, Fiseha Haile, stated that business activity has been expanding in recent months, suggesting the impact on growth was relatively contained. Despite inflation easing sharply to 15.06% in February from around 33% in December 2024, it remains high compared with regional peers. Fuel prices have risen more than 50% during the Iran war, contributing to transport, food and production costs. Despite improvements in external balances, tighter global financing conditions threaten inflows, borrowing costs and remittances.