Patience Key, immediate past chairman of the U.S. chapter of Nigerians in Diaspora Organisation Americas, says Russia’s war in Ukraine has grave consequences for Nigeria as an oil producing country.

Speaking on Sunday in New York, Ms Key said the war would affect Africa and the global economy, because Nigerian was the largest oil producing country in Africa and Russia among the first three largest oil producing countries in the world.

A direct effect of the war on Nigeria she said, is the ongoing bilateral discussions on the resuscitation of the Ajaokuta Steel Mill between the federal government and the Russian government.

Ms Key said, as Russia’s war in Ukraine progresses, there were indices that the discussions could be frustrated.

“Amidst all that, economists are thrilled with mixed feelings over pointers showing that there are still strong indications that the inherent distortions in the Nigerian economy might eventually worsen and topple the already fragile economic condition,’’ she said.

However, Ms Key said the conflict could be a blessing in disguise for Nigeria, noting that the war presently brings about an increase in global oil prices.

“I feel it is the right time for the Nigeria government to make some money as much as they consider and use the profit to pay-off, service some of our loans and grow the economy.

“Our already depleting foreign reserve can also be revisited and serviced for rainy days. If our foreign reserve is fatty, we wouldn’t be running to countries seeking for loans,’’ she said.

In addition, she said the development would also lead to an increase in the amount payable as ‘fuel subsidy’ which might consequently result to inflation and impact other sectors such as the external sector accounts and domestic economy.

“It might result in inflation and impact other sectors because while the Central Bank of Nigeria (CBN) may have enough supply to support the foreign exchange market over the short term, declining foreign inflows and weakening of the external reserves could force further currency depreciation.

“The impact of Ukraine’s invasion by Russia might also result to absence of investment from investors within and outside the country.

“This will slow the development of Africa especially on the competition to cope with the 4th industrial revolution.”

(NAN)