Former presidential candidate of the Labour Party, Peter Obi, has blamed Nigeria’s vulnerability to global economic shocks on poor planning and the absence of strategic reserves, warning that the country continues to suffer immediate consequences whenever international crises occur.
In a statement issued on March 12, 2026, Obi said recent tensions involving Iran and their impact on global oil prices once again exposed the fragility of Nigeria’s economic structure.
“Many people wonder why any adverse development in the global economy quickly impacts Nigeria. A recent example is the tension involving Iran, which led to an increase in global oil prices and, subsequently, a rise in petroleum prices in Nigeria,” Obi said.
He noted that the sharp rise in the cost of fuel within a short period highlights how external shocks quickly ripple through the Nigerian economy.
“A few weeks ago, petrol was selling for less than ₦1,000 per litre, but today it costs over ₦1,200 per litre. Diesel, which was also priced below ₦1,000 per litre, is now over ₦1,500 per litre. These rapid increases illustrate how quickly external shocks can affect the Nigerian economy,” he stated.
According to the former governor of Anambra State, many countries protect their economies from such shocks through strategic petroleum reserves, a safeguard he said Nigeria currently lacks.
“The reason for this is straightforward: most countries, whether they are oil-producing or non-oil-producing, maintain strategic petroleum reserves to cushion against supply or price shocks. This means that when there is a disruption in the global oil market, they can release part of these reserves to stabilize supply. However, Nigeria lacks such a buffer, so the impact is felt almost immediately,” Obi explained.
He stressed that the recurring economic shocks facing the country reflect a deeper governance challenge rooted in inadequate planning.
“The underlying issue is a lack of planning. Countries that engage in planning create buffers against shocks, while those that do not remain vulnerable to them. The old maxim remains true: when a country fails to plan, it has already planned to fail,” he added.
