Russia-Ukraine Conflict Poses Profound Economic Implications For Nigeria, Global Economy ― CPPE CEO
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Russia-Ukraine Conflict Poses Profound Economic Implications For Nigeria, Global Economy ― CPPE CEO


The Chief Executive Officer of Centre for the Promotion of Private Enterprise (CPPE), Dr Musa Yusuf, has raised concerns over the profound economic implication of Russia’s invasion of Ukraine

The CEO of the economic and business advocacy think tank, in a statement on Tuesday, noted that if the invasion persists, it could pose unprecedented challenges and downside risks to the Nigerian and global economy in the areas of higher energy costs, higher fuel imports and subsidy bills, fiscal operations of the government, smuggling of petroleum products, global wheat export and effects on national and global trade.

“The Russian invasion of Ukraine has profound and multidimensional implications for the Nigerian economy, especially if it could last for a long time. These include the escalation of energy prices (diesel, aviation fuel, kerosene and gas), mounting petrol import and subsidy bill and the aggravation of petrol smuggling.

“There are also significant macroeconomic outcomes which include heightening fiscal deficit, growing debt levels, spike in debt service payments, money supply growth, exchange rate depreciation and more intense inflationary pressures. Additionally, the cost of flour, price of bread and other confectioneries may also take a hit,” Dr Yusuf said.

He said that Russia, being the second-largest oil producer globally, producing about 10 million barrels per day, the current conflict would disrupt oil supplies, reduce output and trigger higher prices.

“In Nigeria, the deregulated components of petroleum products would witness sharp increases. These include diesel, aviation fuel and kerosene. Gas would suffer the same fate.


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