The Economic Implications of the Russian-Ukraine Crises on Nigeria
The war between Russia and Ukraine has taken a new twist as hopes for resolution have been thrown out to the wind. According to BBC, “the pain inflicted by this crisis cannot be measured in pounce and cents”. Many Ukrainians have been displaced, imprisoned, and are dead.
In fact, these crises have shattered the economic stability of the state even as they celebrate 31 years of independence from the Soviet Union.
As it stands, this crisis will soon take an unprecedented twist on the economy in Europe at large as any severe blow on Russia may lead to energy crises for most of the European countries because Russia is the third-world producer of oil and second-world producer of natural gas apart from their steel, nickel and aluminum.
At present, the war is hitting hard on Europe as a whole already and the Russian government is planning on resuming fresh series of attacks on Ukraine. Due to the already existing conflict, the automobile sector has also been badly hit as prices of commodities skyrocket.
The US and Canada had ban the Russian airline from coming to their countries and Russia had done the same which calls for an extra cost on airlines. Navigating these routes will now take a longer time, and several stops to transit from Russia to the US. One cannot overemphasize the damage this war has had on Russia, Ukraine, and the rest of the world, and what train of effects could emerge.
Nigeria started feeling the heat at the inception of the war because it was at this point that Nigerian Government tried to resurrect the Ajaokuta plant to boost the production of steel in Nigeria which could create employment for hundreds if not thousands of Nigerians. However, it has been gathered that the war has crippled the plan and has led to a shortage of oil generating a chain reaction to the general increase in fuel price, prices of commodities, transportation, and exchange rate just to mention a few.
Nigeria as a consumer country has a strong tendency to feel the effects more like the European countries if this crisis continue. The dollar rate is already in the high; the prices of commodities alarming coupled with Nigeria national issues.
It is high time Nigeria through true leadership shifted from being a consumer country to a production country by encouraging, assisting and patronizing indigenous producers in other not to be further affected by the Russian-Ukraine conflict.
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