Middle East Crisis Economic Opportunity for Nigeria – Jimoh Ibrahim
The senator representing Ondo South, Jimoh Ibrahim, has said the ongoing conflict in the Middle East could present a major economic opportunity for Nigeria through increased oil revenues that may stabilise the naira, reduce borrowing and strengthen the country’s macroeconomic position.
Ibrahim stated this during an interview on Politics Today on Channels Television on Friday while analysing the implications of the Middle East crisis on Nigeria’s economy, particularly the oil and energy markets.
When asked how the conflict could affect Nigeria in relation to grains and energy, the lawmaker and businessman said the country could benefit from increased revenue.
“You will have more money; that’s one thing. It will reduce borrowing. The price of the dollar may initially rise, but when you sell more oil at higher prices, you get more dollars,” he said.
Ibrahim explained that higher dollar inflows would enable the Central Bank of Nigeria to intervene in the foreign exchange market and stabilise the naira.
“That allows the central bank to intervene in the black market and stabilise rates, making dollars more available. Once that happens, the macroeconomic effect will improve because price stability promotes a sustainable economy arising from cash inflows, not borrowed funds,” he said.
The senator also praised the administration of Bola Tinubu for what he described as progress in debt management, noting an improvement in Nigeria’s revenue-to-debt servicing ratio.
“Right now, revenue-to-debt servicing is 68%. Kudos to Bola Tinubu. Before he came, a 96% GDP-to-revenue ratio went to debt management, meaning for every 100 naira, 96 naira went to debt. Now, you save about 38 naira in your pocket,” he said.
According to him, Nigeria is in a good position to take advantage of the rise in global oil prices triggered by the Middle East crisis.
“With oil prices almost doubling, Nigeria has more dollars to stabilise the macroeconomic system. So, I don’t think there will be much of a problem,” he added.
However, Ibrahim acknowledged that the crisis could also bring challenges at home, particularly rising fuel prices that may increase transportation costs and worsen the cost of living.
Despite this, he expressed confidence in the Federal Government’s ability to manage the situation because of the additional revenue expected from crude oil sales.
“Nigeria is a member of the geocentric system and cannot isolate itself. The government is considering policies to cushion potential impacts. They are capable of doing this because they are receiving significant revenue from crude oil,” he said.
Titilope Adako is a talented and intrepid journalist, dedicated to shedding light on the untold stories of Osun State and Nigeria. Through incisive reporting, she tackles a broad spectrum of topics, from politics and social justice to culture and entertainment, with a commitment to accuracy, empathy, and inspiring positive change.
