Energy analyst and co-founder of Truva Intelligence, Basil Abia, has called for the introduction of a temporary subsidy in Nigeria to cushion the economic impact of rising global oil prices, warning that the country lacks the structural capacity to absorb external energy shocks.
Speaking during an interview on ARISE News on Tuesday, Abia said the global oil market disruption driven by tensions involving Iran is already triggering inflationary pressures that Nigeria is ill-prepared to manage.
“So for me, I think the first thing with Iran still controlling the street of oil… is they’re hating inflationary transmission globally,” he said.
He explained that rising energy costs will have ripple effects across multiple sectors, including food production and manufacturing.
“We’re going to see that not only in energy prices, we’re also going to see that in food prices due to the fertiliser transmission,” he said.
According to him, many countries are already taking proactive steps to cushion the impact on their economies.
“South Korea put in a $17 billion cushioning plan… Spain just put in a 5 billion euro plan… they’re trying to protect their local manufacturing industry,” he said.
However, Abia noted that Nigeria lacks the infrastructure and policy buffers required to implement similar measures effectively.
“But in the context of Nigeria… we don’t have any absorption buffer,” he said.
He explained that weak infrastructure, including limited public transport systems and unreliable power supply, makes demand-control strategies ineffective.
“The only city with a respectable bus rapid transit system is Lagos… and Lagos just has under 600 buses for its nearly 17 million people population,” he said.
Abia also highlighted the country’s heavy dependence on expensive diesel due to poor electricity supply.
“Diesel has gone from 1,200 Naira per litre… to 2,000… depending on which part of Nigeria you’re in,” he said.
Given these constraints, he stressed the need for immediate government intervention.
“But we need a temporary subsidy in Nigeria. We need a temporary subsidy, at least to pre-Iran war crisis,” he said.
Abia’s remarks underscore concerns about Nigeria’s vulnerability to global energy shocks, with calls for short-term subsidy measures reflecting the urgency of cushioning citizens and businesses from rising costs.
Triumph Ojo
