GLOBAL OIL GLUT: STAGFLATION IN NIGERIA AND THE ELECTIONS OF 2015 BY ABBATI BAKO,psc,UK The viable economy (for both government and individual citizen) is the ultimate goal that needs to be achieved by any political leader all over the world. The oil contributes to the global economy (oil is the driving force or wheel that hugely moves the global economy) but experts assert that trade and services contribute 90% of global economy. Trade and services come as a result of industrial manufacturing of products; for consumptions globally. According to Professor John Belis and other 37 Professors (Globalization of World Politics, USA, 2008) the daily global business transactions is amounting to $1.08 trillion. The global economy have been integrated since 90s (reference to Washington Consensuses,1998). There is peril to any nations leader or economy policy makers to allow a nation to be dependent on only one resource as its foreign income revenues (there is danger putting all your eggs in one basket). The global emerging economies such as China, Brazil, India,Turkey, Mexico, Indonesia,Malaysia and many more; never depend on only one resource for their foreign earning revenues. For example, Brazils economy depend hugely on manufacturing and agricultural produce (their dependency on oil is only 4%. The oil glut on the world market (over supplies that are greater than need) happen periodically and affect the global economy; especially OPEC member countries that supply the worlds crude oil. Nigeria is one of the OPEC nations and number six among the top ten oil producers (but among the top 100 poor nations and at the position of 147 out of 178 UN human development index). The 75 to 90% dependency on oil revenues by Nigerian nation is a disastrous economic policy that can plunge the nation into stagflation that is low productions,high inflation, high unemployment and economic aridity among the nations citizens. The high value given to the almighty dollar by the nations leaders can lead to weakening of Naira and that can result to more economic hardship, inflation and unemployment of Nigerias teaming youths. And that can contribute to more insecurity in the country. The elections of 2015 is around 70 and few hours days. The current central government of PDP in Abuja is facing a lot of challenges; especially security challenges, allegations of corruption,impunity, dilapidation of nations infrastructures,education is becoming poorer and sub-standard, deteriorating health care (citizens spend N81b on foreign medical trips) and so on and so forth. If all these mentioned challenges have not been addressed by the current government within the next days; what would they tell Nigerians during the campaign of elections of 2015? May God save Nigeria and Nigerians! Abbati Bako,psc,bsis,UK (Political Strategy Consultant)
Posted on: Mon, 01 Dec 2014 23:06:32 +0000
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