Another Nigerian Paradox: High Oil Prices, Low Government Revenue

Why are Nigerians happy to endure high food prices without protests but the price of petrol is untouchable?

The last time I wrote anything was in November 2021. But there is so much to write about, so let us begin. This week I wrote a column for Arbiterz on our fiscal crisis, sharing my thoughts on the oil sector, government revenue and fuel subsidy bills. Below is a quote from my column:

How come an economy that derives 90% of foreign exchange earnings from oil and gas exports is experiencing such financial misfortune, including a foreign exchange scarcity, at a time of rising oil prices? This is a position in which economies that are net importers of oil find themselves. Oil importers suffer in periods of rising oil prices because they have to spend more foreign exchange in importing oil. This often results in currency devaluation, inflation, and reduced economic output for net oil importers. This was not supposed to be a problem for Nigeria. How did we get here?

Please read and let me know what you think.

Other things I have been up to

I am hosting two trainings in April 2022. The first is the second cohort of my Macroeconomic Analyst Programme.

he Macroeconomic Analyst Programme's (MAP) goal is to equip participants with the skills to understand, analyse and draw intelligent and data-driven insights about the global and local economy. This programme will challenge participants on how to think about the economy and its implications for different stakeholders.

Participants can register here.

The second is a training for financial and business journalists on the economy and financial markets. We are helping media practitioners to develop a better understanding of the economy and financial markets. It is our belief that you cannot report the economy and financial markets in the best way if you do not understand it in the first place. 

Participants can register here.

If you have questions, you can reply to this newsletter or mail me on adedayo@pullachair.com