Dangote Warns of Economic Hardship Amid Middle East Conflicts

Aliko Dangote, the president of Dangote Group, cautioned that the prolonged crises in the Middle East could push parts of Africa, including Nigeria, towards an economic retreat reminiscent of the COVID-19 pandemic. Despite being a major crude oil producer, Nigeria's economy remains vulnerable to oil price shocks, particularly as tensions involving Iran, Israel, and the US drive global energy costs higher.

Fuel prices have surged, with petrol exceeding N1,000 per liter in some areas, leading to increased transport fares and food costs. This inflationary pressure is compounded by Nigeria's reliance on imports and a weak safety net for its citizens.

Experts like Prof. Akpan Ekpo and Prof.

Godwin Owoh highlight that rising fuel prices impact nearly every sector, while David Adonri notes that Nigeria struggles with fiscal discipline, preventing effective use of external revenue gains. The ongoing geopolitical conflicts are not only affecting oil prices but also putting pressure on the naira, raising local import costs and deepening inflation.