Senator Jimoh Ibrahim, who represents Ondo South, says the ongoing Middle East conflict could unexpectedly strengthen **Nigeria’s economy by increasing oil earnings, stabilising the naira, and reducing the government’s need to borrow.
Speaking during an interview on Politics Today on Channels Television on Friday, the businessman-turned-lawmaker argued that higher crude prices triggered by the crisis could bring in more dollar inflows for the country.
Responding to questions about the war’s possible impact on food and energy markets, Ibrahim said the surge in oil prices would translate into stronger revenues for Nigeria. “You will have more money; that’s one thing. It will reduce borrowing. The price of the dollar may initially rise, but when you sell more oil at higher prices, you get more dollars,” he said.
He added that increased dollar inflows would allow the Central Bank of Nigeria to stabilise exchange rates by improving dollar supply in the market. “That allows the central bank to intervene in the black market and stabilise rates, making dollars more available. Once that happens, the macroeconomic effect will improve because price stability promotes a sustainable economy arising from cash inflows, not borrowed funds,” Ibrahim explained.
The senator also praised the economic management of Bola Tinubu, saying Nigeria’s debt burden relative to revenue had improved. “Right now, revenue-to-debt servicing is 68%. Kudos to Bola Tinubu. Before he came, a 96% GDP-to-revenue ratio went to debt management, meaning for every 100 naira, 96 naira went to debt. Now, you save about 38 naira in your pocket,” he said.
According to Ibrahim, with global oil prices rising sharply due to tensions in the Middle East, Nigeria could see stronger dollar earnings that would help stabilise the broader economy. “With oil prices almost doubling, Nigeria has more dollars to stabilise the macroeconomic system. So, I don’t think there will be much of a problem,” he added.
However, he acknowledged that the conflict could still have negative domestic effects, particularly through higher fuel costs that may push up transportation expenses and worsen the cost of living.
Despite those concerns, the senator said the government has the capacity to manage the fallout because of increased oil revenues. “Nigeria is a member of the geocentric system and cannot isolate itself. The government is considering policies to cushion potential impacts. They are capable of doing this because they are receiving significant revenue from crude oil,” he said.
