It is magical: Nigeria struggles when crude oil price goes south (its foreign earning drops). It also cries when the price of crude oil goes north (importing gasoline becomes more expensive since its refineries are museums). I have a question: since oil prices cannot go sideways, what do we want as a nation?
(NB: the price of oil will likely keep going up now that the EU has “banned” Russian oil. What that means is that supply has been limited. From Econ 101, prices will go up, ceteris paribus. Largely, Nigeria would have cleaned up during this moment.
Of course, that may not be the only story. If Russian oil becomes very cheap, India can buy more, and resell to Germany. Magically, Nigeria may even lose some key markets like India, depressing our earnings from oil.
Tekedia Mini-MBA edition 14 (June 3 – Sept 2, 2024) begins registrations; get massive discounts with early registration here.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
For instance, since Poland and Bulgaria lost access to Russian gas, Germany is consuming more gas which is then channeled to these countries, says Russia.)
---
Register for Tekedia Mini-MBA (Jun 3 - Sep 2, 2024), and join Prof Ndubuisi Ekekwe and our global faculty; click here.