Former presidential candidate of the Labour Party, Peter Obi, has attributed the frequent impact of global economic developments on Nigeria to poor planning and the absence of strategic buffers to shield the country from external shocks.
In a statement on Friday, Obi said recent tensions involving Iran, which triggered a rise in global crude oil prices, had once again exposed Nigeria’s vulnerability to developments in the international energy market.
He noted that the ripple effect of the geopolitical tension had quickly translated into higher petroleum prices across the country.
“Many people wonder why any adverse development in the global economy quickly impacts Nigeria. A recent example is the tension involving Iran, which led to an increase in global oil prices and, subsequently, a rise in petroleum prices in Nigeria,” Obi said.Nigerian Political Analysis
According to him, the surge in pump prices within a short period illustrates the fragile structure of Nigeria’s energy and economic systems.
“A few weeks ago, petrol was selling for less than ₦1,000 per litre, but today it costs over ₦1,200 per litre. Diesel, which was also priced below ₦1,000 per litre, is now over ₦1,500 per litre. These rapid increases illustrate how quickly external shocks can affect the Nigerian economy,” he stated.
Obi explained that many countries, regardless of whether they produce crude oil or not, maintain strategic petroleum reserves to cushion supply disruptions and sudden price spikes.
He said such reserves enable governments to release stored fuel into the market during global crises to stabilise prices and maintain supply.
“The reason for this is straightforward: most countries, whether they are oil-producing or non-oil-producing, maintain strategic petroleum reserves to cushion against supply or price shocks. This means that when there is a disruption in the global oil market, they can release part of these reserves to stabilise supply,” he said.
However, Obi lamented that Nigeria currently lacks such a buffer system, leaving the country highly exposed whenever the international oil market experiences turbulence.Nigerian Political Analysis
“However, Nigeria lacks such a buffer, so the impact is felt almost immediately,” he added.
The former governor of Anambra State said the situation underscores the consequences of inadequate long-term planning in economic management.
“The underlying issue is a lack of planning. Countries that engage in planning create buffers against shocks, while those that do not remain vulnerable to them. The old maxim remains true: when a country fails to plan, it has already planned to fail,” Obi stated.
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He urged policymakers to prioritise strategic planning and build economic safeguards that can protect Nigeria from sudden global disruptions.