Economy: PwC Chief Economist and Mr Sappor Disagree on Ukraine War 

Economy: PwC Chief Economist and Mr Sappor Disagree on Ukraine War 

March 12, 2022 0 By Admin
Bright Ewulu,with additional reports
Dr. Andrew Nevin, the Chief Economist of Price Waterhouse Coopers, PwC Nigeria, recently posited that one of the lessons from the Russian-Ukrainian conflict is the need for Nigeria to position itself as an alternative gas supplier to Europe.


According to him, the war is an opportunity for Nigeria to accelerate its gas strategy and engage leading European economies like Germany and France on gas export to the region.


Speaking to us on the development Public Affairs Analyst and Businessman,Mr Abiola Sappor disagrees that Nigeria should see the Ukraine war as an economic opportunity but as a human tragedy,saying that what is going on is mindless.
According to him Nigeria’s economy may well benefit from the crisis as well as face some negatives but adds that the crisis should be stopped in the overall interest of the World.
For Dr Nevin, however, Nigeria serving as an alternative gas supplier was good for Europe’s energy security and stability. The expert harped on the need for the Federal Government and the Nigeria National Petroleum Corporation (NNPC) to develop a compelling business case for gas exports.


Considering the global economic uncertainties that have emanated from the Ukrainian crisis, he noted that Nigeria’s ability to supply gas to Europe would be a game-changer in the energy market.But the contension of other experts we spoke is that Nigeria should first to supply enough gas for its own energy than trying to tap into an opportunity created by uncertainties like wars.


Speaking further, Dr Nevin stated  that if Nigeria secures a deal to supply gas to Europe, it will positively affect its financial position and revenue base.
Sappor also hinted that Nigeria itself is in such environmental and terror crisis that it would be wonderful to expect much change in our economic situation under the current administration,especially with the coming election in the country.
He does not see Nigeria emerging better economically because of the various internal contradictions within Nigeria and the huge debt burden and economic mishap that has seen Nigeria borrowing mindlessly even while the oil price has moved well beyond the $120 mark


On his part,Nevin, who was focusing on the investments in the Nigerian oil and gas market for 2021, observed that it was low and emphasized the need for an enabling business environment that can attract significant foreign direct investments into the country.


His counterpart added that Nigeria has not been able to leverage the current international crude oil price regime of over $100 per barrel due to low production at 1.2m bpd. “If Nigeria steps up production to the level of 1.7m bpd and the over $100 per barrel regime is sustained, then the country will be in a good fiscal position”.


Assessing the impact of the conflict on the global supply chain, he said, unlike the COVID 19 pandemic, the crisis is hurting the Russian economy and citizens. He said the economic sanctions would weaken Russia as its GDP could decline by 7%, possibly catastrophic.


Providing further insight, he highlighted that the size of the Russian economy is smaller than Canada and even Texas in the United States of America. He believed that the Russian citizens would bear the brunt of the sanctions alongside western companies exposed to the nation through their investments.