Dangote Says Rising Oil Prices Forcing Countries Into Work-from-home Mode
- Aliko Dangote has warned that rising oil prices have encouraged working from home to cope with escalating energy costs
- He highlighted the significant strain this is placing on sectors like small businesses and industries reliant on generators
- Dangote urged a peaceful resolution to the conflict, as it could worsen financial hardships for citizens, particularly in Africa
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Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
Aliko Dangote, the president of the Dangote Group, recently spoke about the economic consequences of rising oil prices, noting that it has led some countries to advise their citizens to work from home.
Dangote made this statement after a visit to President Bola Tinubu following the Eid al-Fitr celebrations.
Source: UGC
He highlighted that the ongoing Middle East conflict, if not resolved, will likely continue driving up energy costs.
As a result, governments worldwide are facing financial strains and are currently unable to increase salaries, which will place a heavy burden on citizens, especially in low-income sectors.
Dangote pointed out that sectors such as barbershops, bread makers, and industries reliant on generators would be hit hardest.
He also referred to specific countries where authorities have reduced the workweek to four days and might eventually push for a full work-from-home approach if the situation doesn’t improve.
He said:
“I mean, you can see, in some countries today what they’ve done is ask everybody to work from home.
“I think in Indonesia or so, they said only go to work four days a week and they will look at the situation, if it doesn’t improve, they will ask everybody not to go to work anymore. We did that in the time of COVID-19, where people worked from home.”
This shift highlights the deepening economic challenges posed by energy price hikes.
Nigeria’s vulnerability to global economic shocks
Although Nigeria is not directly involved in the Middle East conflict, Dangote warned that the ripple effects would still be felt due to the global interconnectedness of economies.
He emphasised Nigeria's potential to bear high economic costs if the situation worsens. In particular, Dangote expressed concern about the heavy financial burden already facing African nations, many of which are struggling with debt.
The rising cost of energy is particularly critical, as it influences a wide range of industries and daily life. Dangote stressed that people across the continent often live paycheck to paycheck, meaning any disruption in work could result in immediate hardship.
He urged collective prayers for a peaceful resolution to the conflict, stressing that without a resolution, African nations—already vulnerable without financial reserves—could face even greater challenges.
Additionally, in response to the energy crisis, the International Energy Agency (IEA) recommended strategies like reducing air and road transport, working from home where feasible, and switching to electric cooking as ways to mitigate the impact of the ongoing conflict.
Source: UGC
US-Iran-Israel war affects Nigeria
Meanwhile, Legit.ng earlier reported that the escalating tensions in the Middle East are sending concerns through Nigeria's economy, with fuel prices alleged to skyrocket.
Economist Paul Alaje warns that the conflict could push petrol prices to higher levels, spelling trouble for households and businesses alike.
Nigerians who listened to the economist speaking during a recent interview had different things to say in the comments section.
Source: Legit.ng
