The 2023 presidential candidate of the Labour Party (LP), Mr. Peter Obi, has faulted Nigeria’s lack of strategic fuel reserves, asserting that it exposes the country’s economy to global shocks.
Obi‘s comments follow the escalating geopolitical tensions in the Middle East involving the United States, Israel, and Iran.
“Many people wonder why any adverse development in the global economy quickly impacts Nigeria. A recent example is the tension involving Iran, which led to an increase in global oil prices and, subsequently, a rise in petroleum prices in Nigeria.
“A few weeks ago, petrol was selling for less than ₦1,000 per litre, but today it costs over ₦1,200 per litre. Diesel, which was also priced below ₦1,000 per litre, is now over ₦1,500 per litre. These rapid increases illustrate how quickly external shocks can affect the Nigerian economy,” he said.
Obi explained that in most countries, whether oil-producing or non-oil-producing, strategic petroleum reserves are maintained to cushion against supply or price shocks.
According to him, when there is a disruption in the global oil market, such countries can release part of these reserves to stabilise supply, but the situation is different in Nigeria.
“However, Nigeria lacks such a buffer, so the impact is felt almost immediately. The underlying issue is a lack of planning,” Obi argued.
He noted that countries that engage in planning create buffers against shocks, while those that do not remain vulnerable to them.
“The old maxim remains true: when a country fails to plan, it has already planned to fail,” he added.
