By John Umeh
Africa’s richest businessman, Aliko Dangote, has cautioned that the ongoing tensions in the Middle East could have far-reaching economic consequences if the conflict is not quickly resolved, warning that countries around the world may face steep costs.
Dangote made the remarks after paying a post-Eid al-Fitr visit to President Bola Ahmed Tinubu, where he expressed concern about the ripple effects of rising global oil prices triggered by the crisis.
According to him, the surge in energy costs is already putting pressure on economies and everyday businesses. He noted that small-scale operators such as barbers, bakers, and other entrepreneurs who depend heavily on fuel-powered generators would be among the hardest hit.
Dangote revealed that some countries have begun implementing emergency measures to cope with the situation, including reduced work schedules and remote working arrangements aimed at lowering fuel consumption.
He cited Indonesia as an example, noting that authorities there have reportedly introduced shorter workweeks as part of efforts to manage energy usage. He added that if the situation worsens, more nations may be forced to adopt similar policies, drawing parallels with the widespread remote work arrangements seen during the COVID-19 pandemic.
The business mogul warned that the economic impact would not be limited to countries directly involved in the conflict, stressing that prolonged instability in the Middle East could disrupt global supply chains and drive up costs worldwide.
Dangote also highlighted the vulnerability of African economies, explaining that many countries on the continent lack sufficient financial reserves to cushion sudden economic shocks. He noted that a significant portion of the population relies on daily income, making them particularly susceptible to disruptions caused by rising fuel and energy costs.
He further cautioned that the crisis could encourage opportunistic price hikes by some individuals seeking to profit from the situation, thereby worsening the burden on ordinary citizens.
Calling for calm and a swift resolution, Dangote urged global leaders and stakeholders to work toward de-escalating tensions, expressing hope that the conflict would soon come to an end.
Meanwhile, the International Energy Agency has recommended measures such as remote work, reduced transportation, and improved energy efficiency as practical steps countries can adopt to mitigate the impact of rising energy prices.
