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Nigerian Ambassador Backs Saudi Efforts to Maintain Stability in Global Energy Markets

Lawal stands among Saudi officials, diplomats, and ambassadors in Riyadh on his country’s national day celebration two days ago. (Asharq Al-Awsat)
Lawal stands among Saudi officials, diplomats, and ambassadors in Riyadh on his country’s national day celebration two days ago. (Asharq Al-Awsat)
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Nigerian Ambassador Backs Saudi Efforts to Maintain Stability in Global Energy Markets

Lawal stands among Saudi officials, diplomats, and ambassadors in Riyadh on his country’s national day celebration two days ago. (Asharq Al-Awsat)
Lawal stands among Saudi officials, diplomats, and ambassadors in Riyadh on his country’s national day celebration two days ago. (Asharq Al-Awsat)

Nigerian Ambassador to Saudi Arabia Yahaya Lawal has expressed support to the Kingdom in its strategy that encourages the OPEC+ group to guarantee the global energy markets' stability.

He revealed that there are ongoing negotiations between the two countries on more than 12 agreements and MoUs to boost strategic ties and joint work.

In remarks to Asharq Al-Awsat newspaper, the ambassador said that Abuja and Riyadh - as OPEC members - maintain solid cooperation in favor of the global oil market. They work under the OPEC+ framework to maintain the stability of the market and to achieve a fair price.

Saudi Arabia and Nigeria are essential in terms of oil and share a strong partnership in preserving the oil market’s stability which is crucial to the global economy, he added.

OPEC data showed that Nigeria produced 1.18 million bpd in August.

12 Agreements and MoUs

Lawal remarked that both countries are holding talks over 12 agreements and MoUs as part of the Nigeria-Saudi Joint Commission.

He further noted that an agreement was previously signed between the chambers of commerce and industry in Saudi Arabia and Nigeria, and it would reinforce trade, economic, and investment cooperation.

Lawal stressed that the current talks are part of endeavors to boost cooperation in many fields, including energy, oil, gas, investment protection, avoiding dual taxation, transport, anti-corruption, money laundering and financial crimes, education, human trafficking, security and defense cooperation, and other sectors.

According to the Nigerian ambassador, the Saudi-Nigerian ties have elevated remarkably in various fields in which some Saudi investors have launched investments in Nigeria, especially in real estate development and agriculture where the trade level is undergoing an uptrend.

Saudi Arabia's exports to Nigeria were $696.28 million in 2021, he noted, adding that the exports include petrochemical products and other finished goods.

For its part, Nigeria exports agricultural products, coal, and some household goods.

The ambassador went on to say that the bilateral trade is expected to boost in the coming period, highlighting that the positive change is obvious given that trade between both countries was low in the past years and was mainly focused on unofficial trade, especially during the Hajj season.

Lawal stated that Saudi Arabia and Nigeria share a long history of ties that goes back centuries before the foundation of both countries. Nigerians used to head to the Kingdom to perform Hajj and for commercial purposes.

He said he looks forward to the business community in both countries unlocking the available opportunities in investment and commerce in Nigeria.

Moreover, he pointed out that there are abundant joint features on which both countries are working, amid new initiatives of mutual interest.

Lawal clarified that Nigeria has a population of more than 220 million and they represent a huge production force, concluding that his country enjoys huge potentials and various resources, as well as investment-friendly laws.

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IMF: Middle East Conflict Escalation Could Have Significant Economic Consequences

Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki
Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki
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IMF: Middle East Conflict Escalation Could Have Significant Economic Consequences

Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki
Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki

The International Monetary Fund said on Thursday that an escalation of the conflict in the Middle East could have significant economic ramifications for the region and the global economy, but commodity prices remain below the highs of the past year.

IMF spokesperson Julie Kozack told a regular news briefing that the Fund is closely monitoring the situation in southern Lebanon with "grave concern" and offered condolences for the loss of life.

"The potential for further escalation of the conflict heightens risks and uncertainty and could have significant economic ramifications for the region and beyond," Kozack said.

According to Reuters, she said it was too early to predict specific impacts on the global economy, but noted that economies in the region have already suffered greatly, especially in Gaza, where the civilian population "faces dire socioeconomic conditions, a humanitarian crisis and insufficient aid deliveries.

The IMF estimates that Gaza's GDP declined 86% in the first half of 2024, Kozack said, while the West Bank's first-half GDP likely declined 25%, with prospects of a further deterioration.

Israel's GDP contracted by about 20% in the fourth quarter of 2023 after the conflict began, and the country has seen only a partial recovery in the first half of 2024, she added.
The IMF will update its economic projections for all countries and the global economy later in October when the global lender and World Bank hold their fall meetings in Washington.
"In Lebanon, the recent intensification of the conflict is exacerbating the country's already fragile macroeconomic and social situation," Kozack said, referring to Israel's airstrikes on Hezbollah in Lebanon.
"The conflict has inflicted a heavy human toll on the country, and it has damaged physical infrastructure."
The main channels for the conflict to impact the global economy have been through higher commodity prices, including oil and grains, as well as increased shipping costs, as vessels avoid potential missile attacks by Yemen's Houthis on vessels in the Red Sea, Kozack said. But commodity prices are currently lower than their peaks in the past year.
"I just emphasize once again that we're closely monitoring the situation, and this is a situation of great concern and very high uncertainty," she added.
Lebanon in 2022 reached a staff-level agreement with the IMF on a potential loan program, but there has been insufficient progress on required reforms, Kozack said.
"We are prepared to engage with Lebanon on a possible financing program when the situation is appropriate to do so, but it would necessitate that the actions can be taken and decisive policy measures can be taken," Kozack added. "We are currently supporting Lebanon through capacity development assistance and other areas where possible."