Defining The Place of Nigeria in A New World Order Where Global Economic Vulnerabilities Interact 

AVM RTD AKUGBE IYAMU MNSA fsi 

PRESIDENT ASSOCIATION OF ENVIRONMENTAL PROTECTION AND CLIMATE CHANGE PRACTITIONERS

CONSULTANT ON CLIMATE CHANGE AND ANALYST ON ENVIRONMENTAL POLICIES AND COMMENTATOR ON NATIONAL ISSUES

Nigeria fuel prices is ever on the increase as the United States and Iran are again off to a predictable face -off. Those who expected any novelty must have been in shock. Others who expected depth and insight in negotiations may yet embrace embarrassments. The two combatants are already sounding like cracked vinyl records in an annoying echo chamber with no new perspective on how to dig the world out of the energy bottomless pit where the world energy has been dumped.

More curious and tragic is the helplessness of the the entire world in surrendering energy security and allowing the US to set the agenda for energy stability without considering the generational consequences for the global economy. Energy is now the global epidemics of the new world order.

For more than 2 centuries of relative stability, energy security has now come down to who controls the strait of Hormuz and the United States and Iran have dorned their war overalls. It is now about who blinks first with the United States digging in on the blockade that has been in force for more than six months. This has forced oil prices to hover around $100 and $105 thereby throwing the world economy into turmoil. The situation has immediately sent crisis into Nigeria economy with the price of petroleum between 1300 and 1500 Naira resulting in transportation fares becoming increasingly concerning and impossible. Hunger has invaded the country such that the population of the poor has overwhelmed the country’s general population making Nigeria the poverty capital and the most poverty stricken country in the world with the indices of daily living in rapid decline.

The current situation is such that a less commitment to robust methodology of hunger and poverty will be inadequate to address the recurring crisis. Additionally, palliative have become ineffective measures to address the structural problems of poverty and hunger. Everytime, they appear as just a token. Also, the Central Bank and the Ministry of Finance are struggling with justification of the over 16 trillion Naira harvested from poor citizens from fuel subsidy. Nigerians are forced into getting used to skyrocketing petrol prices as the Iran war are fought with Tom and Jerry rhetorics.

The situation in Nigeria was not primarily the removal of fuel subsidy though the policy may have headed to the wrong direction. The real challenge is the immediate reengineering of the entire oil system that has been grossly mismanaged. The conversation now should be how to harness the $25+ premium on the budget premised on $65. The oil now hover around 100 and $105. The premium need to be deployed to poverty reduction, education, healthcare and massive reduction in the cost of governance. It is now time for the country to move seamlessly from total dependence on oil.

This is because the lazy obsession with the economic mechanisms of oil need to be corrected. The war in iran has clearly shown that it is becoming outdated and a worn out track. The reason being Nigeria population is fast expanding currently more than 230 million with approximately 34 to 37 million hectares of arable land, which makes up about 40.5% of the country’s total land area. The land is endowed with valuable mineral resources and the conversation need to change. The country need to explore more options other than oil and gas and that should be the new focus. The process of subsidy removal may have been untidy but was necessary. We need to address the new challenges and go beyond the routine monthly FAAC disbursement.

Learning from the middle east war, the old energy economy is seriously under threat and time to give consideration to other options: electric vehicles need to be vigorously implemented to replace the existing combustion system and solar and nuclear power should be the new substitute for gas turbines in the power sector. The road to alternative option need to redouble human resources transitioning to Merchandise for exports.

Nigeria new world order must begin with the cultivation of the vast arable land area to feed the exponentially rising population. Additionally, the vast and beautiful cultural heritage is waiting for sincere attention and exploring. Nigeria need to build a tourism empire that will bring in the foreign exchange boost.