In light of the continuing tensions between the US and Iran, Peter Obi, a former presidential candidate for the Labour Party, has expressed his dismay at the dramatic increase in the price of petroleum goods in Nigeria.
Obi mentioned in a Thursday post on his verified X handle that many people are perplexed by the rapid impact of negative global economic developments on Nigeria.
His most recent example, he added, is the conflict with Iran, which drove up oil prices worldwide and, by extension, the cost of petroleum in Nigeria.
Gasoline went from selling for under ₦1,000 per litre just a few weeks ago to costing more than ₦1,200 per litre today. The price of diesel has risen from below ₦1,000 per litre to more than ₦1,500 per litre. The speed with which these rises occurred shows how the Nigerian economy is vulnerable to outside shocks.
For obvious reasons, the vast majority of nations keep some kind of strategic petroleum reserve to protect themselves from fluctuations in oil prices or supplies.
In the event of a disturbance in the international oil market, they will be able to stabilise supplies by drawing on portion of these reserves. But there is no such buffer in Nigeria, so the effects are noticed relatively quickly.
“Not having a strategy is the main problem. While less prepared nations are more likely to suffer the effects of shocks, countries that actively plan are better able to withstand them. “When a nation doesn’t plan, it has already planned to fail,” he said, echoing an old adage.