LCCI President Says Nigeria Could Benefit From The Russia-Ukraine Conflict

Dr Michael Olawale-Cole, the President of Lagos Chamber of Commerce and Industry (LCCI)

Amid the ongoing Russia-Ukraine conflict which has seen countries and companies turn their backs on Russia, Dr Michael Olawale-Cole, the president of Lagos Chamber of Commerce and Industry has said that Nigeria could benefit from the ongoing crisis.

His comment came in a statement issued in response to Russia’s invasion of Ukraine. The President of the LCCI, in his statement, encouraged the federal government to consider exporting more gas to Europe. According to him, Nigeria could be rolling in cash on sectors such as gas delivery as a result of sanctions Russia received for attacking Ukraine.

Let’s go into the details…

The continent of Europe is dependent on Russia for around 30 percent of its gas. It is also the single-largest buyer of Russian energy. Amid the ongoing Russia-Ukraine conflict, there has been a disruption in the supply of energy from Russia and the threat of Russia cutting off supply is also looming. Although Europe is looking at tapping into new suppliers and gearing towards renewable energy, it may not be able to quickly fill the void created by the war.

The US, as part of its sanctions, has banned the importation of oil and other fossil fuels from Russia.

Now, this creates an opportunity for other oil-producing states such as Nigeria. This is what the president of the LCCI means by saying that Nigeria could benefit from the Russia-Ukraine conflict.

 “With this, we can explore the opportunity of exporting gas to Europe. We should also target Trans-Saharan and European markets with the ongoing construction of the Ajaokuta, Kaduna, Kano Gas Pipeline, popularly known as AKK gas pipeline. Arising from the calamities of this war, Nigeria can explore emerging opportunities to earn huge foreign exchange inflow in the medium to long-term,” he said.

He went ahead to demand that the government open up its reserves so as to improve the supply of grain and also stabilize the prices of wheat in the short term.

“The war between Ukraine and Russia will likely make the world’s hunger crises even tougher to fight as the countries are two of the world’s major suppliers of grains like wheat”, the statement said.

“Nigeria’s food supply will surely come under some pressure as it imported 4 percent of wheat from Ukraine and 27 percent of wheat from Russia in 2021”, the statement said. The LCCI president suggested the government look at importing from sources other than Ukraine and Russia.

“However, the most sustainable solution is for the government to boost local production of these grains to levels that meet local demand,” he added while encouraging the government to be diplomatic in their approaches in trying to resolve these problems…