International Journal of Research and Innovation in Social Science (IJRISS) |Volume VI, Issue IX, September 2022|ISSN 2454-6186
Russia-Ukraine Crisis: Waning of the petrodollar System and its Financial Imperative for Nigeria
Prof. Walter C. Ndubuisi and Mr. Alexander Solomon Oghoyone
Department of Banking and Finance, Faculty of Management Sciences, University of Maiduguri,
Borno State, Nigeria
Abstract: The creation of a petrodollar global-economy ushered in the rise of globalization. After this formation and going forward, apart from peripheral squabbles like terrorism and insurgence within states, it is believed that there will hardly be any serious wars between nations, because it is believed that nations have learnt their lessons and the incentive of a globe connected financially, will discourage wars. Obviously, this position is wrong. Russia has leverage on the fall-out of the surprised war with Ukraine to break-free from the petrodollar systemr. The Kremlin, China and some countries in Asia don’t want the dollar to remain the central-currency anymore. A move considered an obnoxious-shift by the West. Consequently, nations must forcefully align behind the West or for the East while Ukraine is been reduced to ashes in the middle. Nigeria is the leading-economy in the ‘Richest continent’. it becomes imperative that the nation sits-up and chart a productive-course for itself, so that other African nations can follow. The time to be non-align is gradually fading as most African nations are indebted financially both to the West and the East; therefore, will be in a serious dilemma amidst this dichotomy. The study historically exposes the short coming of Nigeria if it does not ceasing upon the current war to develop herself through financial-technology culminating in an African-based-payment-system (just like the University Transparent Accountability Payment System developed by the nation’s Universities) so as to be able to sustain the African continent should it comes to the point when one of these blocks decides to be aggressive towards it. The study concluded that Nigeria can anchor a formidable payment system for the African-continent. It recommends that Nigeria should quickly bridge the commodity shortfalls from Russia and Ukraine through Local production, develop a homegrown continental-payment-system equaling the SWIFT or SPFS while law-makers should start drawing-up legislations to make the nation a globally connected but an independent State. This readiness should e treated with uttermost urgency for the sake of our self-survival.
Alternative Payment Systems, Nigeria’s Imperatives, Petrodollar System, Russia-Ukraine war, SWIFT
I. INTRODUCTION
Background to the Study
I don’t think anyone envisaged a full-blown war in the 21st century among two developing nations, talk more of such a war occurring in Europe. The shock is palpable as one thinks that several global alignments like NATO, EU, BRICKS, AU and so on should discourage such possibilities. That was in yesterday’s world. Two nations in Europe are engaged in a brutal war with nuclear reactors almost melting down already, yet the missiles are still pouring in. The world has graduated