Middle east conflict presents economic opportunity for Nigeria — Jimoh Ibrahim
The senator representing Ondo South, Jimoh Ibrahim, has said the ongoing Middle East conflict could present a significant economic opportunity for Nigeria through increased oil revenues that may help stabilise the naira, reduce borrowing and strengthen the country’s macroeconomic position.
Ibrahim made the remarks during an interview on Politics Today on Channels Television on Friday while analysing the possible impact of the crisis on Nigeria’s economy, particularly in the oil and energy sectors.
According to the lawmaker and businessman, the conflict could boost Nigeria’s earnings as global oil prices rise. He explained that higher oil prices would bring in more foreign exchange for the country.
“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 also commended the administration of President Bola Tinubu for what he described as improvements in debt management, citing changes 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 stated.
The senator noted that with oil prices nearly doubling amid tensions in the Middle East, Nigeria stands to earn more dollars that could help stabilise the country’s macroeconomic system.
“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 conflict could also pose domestic challenges, warning that rising fuel prices might increase transportation costs and further strain the cost of living.
Despite this, he expressed confidence that the government would be able to manage potential negative effects due to increased crude oil revenues.
“Nigeria is part of the global 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.
