A United Nations UN report has given an indication that the Nigerian economy might be assailed with more energy turbulence, amid rising fossil energy costs and a global economic meltdown.
The report, which was titled “Global Impact of War in Ukraine: Energy crisis – UN Global Response Group on Food, Energy and Finance, August 2022,” also stated that debt repayment and financial conditions in developing countries would be worsened despite the fall in commodity prices due to a strengthening United States dollar.
“Consumer price indices keep climbing, consumer sentiment is deteriorating and leading industrial indicators in many countries suggest a slowdown in production.
“However, the signals are not altogether clear: unemployment is still falling in some major markets, and UNCTAD model data on gross domestic product show signals of a slowdown but this has yet to gather pace”, the report showed.
The UN also added since the start of the war, food import bills have increased by $24.6 billion in 62 most vulnerable countries.
The bloc further warned that in the short term, developing economies will struggle to obtain the energy supply they need while vulnerable populations will struggle to access energy and clean cooking solutions, thereby losing hard-won gains in achieving Sustainable Development Goal 7.