The NATO-triggered war between Russia and Ukraine is sparking an adverse reaction on the global economy, as price of crude oil hits $130 per barrel. It would be recalled that, Russia, in a counter reaction against NATO sanctions over its special military operation in Ukraine, commenced the sales of crude oil and gas in its currency, the Ruble. Russia raked in $98 billion in the first 100 days of their special military operations in Ukraine. About $60 billion of it are exports from European countries.
This has heavily attracted its BRICS bloc partners such as India, China, South Africa and other countries to keep buying crude oil from Russia at mouth-watering rates. While some European countries despite their own sanctions can’t imagine a detachment from energy imports from Russia because of the huge economic implications it will have on them.
All these has resulted in the astronomical heights of the price of essential commodities globally since the commencement of the war:
Coal increased by 70% since January
Wheat increased by 60.1%
Natural gas increased by 54.6%
Crude oil increased by 29.1% in the US
Brent crude increased by 60%
Corn increased by 23.9%
Nickel increased by 46.5%
The increase in the above commodities depicts Russia as a highly strategic global power house, not only in arms and munitions or nuclear power, but also a global economic power house comprising 8% of the globe’s land space. Through the war in Ukraine, Russia has harvested more from it than the damages of the sanctions as the downturn pushed them to resort to importation and exportation in their own currency which has forced the ‘ruble’ to appreciate against the ‘dollar’ in 7 years historic highs.
Effects on Nigeria
As a mono-economic nation with ambivalent polar diversity dictated by crude oil interest, the battle for subsidy removal is becoming more glaring with the new NNPC data obtained yesterday being Sunday. The landing cost of fuel hits over N850 which drives subsidy payment per litre above N600.
The new data also reported on Sunday that, Nigeria’s fuel consumption per day keeps rising despite the unfriendliness of the economy to its citizens. Fuel consumption per day is now 66.8 million litres/day against 52 million litres the last time I checked, bringing a total subsidy daily payment to an astronomical N40.1billion and a monthly payment of N1.243trn, which is twice higher than what the whole country share as statutory monthly allocation from FAAC in May 2022.
It’s also seen to be higher than projected monthly revenue of the country. The most beneficiaries of this subsidies are the 2% Nigerians that owns bank deposit in the country majority of which are politicians who fish from the same treasury.
Recall that the Buhari government has borrowed well over $60 billion in 7 years but failed to invest in the revamping of our domestic refineries and other ailing industries hence the reduction of Economic Development Indices in all aspects of the country.
The deregulation of diesel price at the current rate of N850 per litre has resulted in the hike of commodities in the country as power is still dwindling below 4000MW. Fuel is supposed to be more expensive than diesel but the subsidy on it has helped to keep the price lowest among other nations. Any attempt to temper this now, would mean buying a sachet water at N250 or more due to high cost of production posed by the cost of landing the product from foreign destinations by our greedy and self-seeking leaders.
The two greatest economic factors in the country at the moment are two energy areas: Petroleum and Electricity
The inability to refine Petroleum products in the country has resulted in the budget draining subsidy regime which Buhari outrightly criticized previous government about, calling it corruption. Now we’re more head-bent on it despite the huge borrowing in the last 7 years. We are also currently burdened by two conditions in this area:
i. subsidy payment on fuel is too high for the country
ii. deregulated diesel price at N850 standing in the gap of power inefficiency is driving cost of production and services very high which result in the increase of commodities with a negative effect in the standard of living (HDIs).
Buhari failed as a president
Buhari failed as Petroleum minister
The key solution to Nigeria’s current economic woes is to fix power and fix the refineries, and the economy will regain stability thereby. One is inefficient without the other. This is why #PeterObi visited Egypt due to their remarkable progress made in the power sector by adding about 30,000MW in five years of president Alsisi’s regime to expedite ‘the how’ even while the so called Mohammed on the sit only visits London on medicals neglecting the great impact of his African Muslim brother.
If you are still there thinking about APC and PDP, I guess you need to be examined for all these. Atikulation isn’t a virtue neither is Tinubism. But Obidience certainly is. We are not asking for councilorship, LGA chairmanship, parliament or Gubernatorial, we are asking for the singular office of the president to be able to start the needed change where it ought to begin from.
Please spare us the sermon about structure because we aren’t greedy. Greedy is he who takes majority of the country’s ruling offices but can’t effect HDIs by fixing refineries and the power sector to make the economy better. Who structure don epp? As popular as Dino Melaye, he still lost the senatorial primaries in Kogi West to less popular candidate. In the whole of Kogi, no politician is as popular as Dino, not even the governor before he started running for the president yet he lost the senatorial primaries because of the wrong perception people have about him regarding his extravagant lifestyle of acquiring porche cars which can set up industries in Kabba and even boost his candidacy beyond senatorial level. Prudence is what we need in Nigeria today, not lavish.
Please just get your PVCs and vote #PeterObi as president, you can have the rest positions for all we care. Presidency is what we are asking for. Just thumbprint for #PeterObi as you match forward on election day from the queue. Is that too difficult to ask for huh?
We pray God once again to give us #PeterObi with a Harvardious, Oxfordious and Cambridgious intellectual capacity and above all, the patriarchical grace of the most high to effect the needed change and switch off the time bomb reading at 9 meniscus level before it explodes and destroy the entire country totally.