Speaking to Reuters, Nigeria’s Foreign Minister Yusuf Tuggar said escalating tensions in the Middle East highlight the need for diversified energy sources, particularly as disruptions affect shipments through the Strait of Hormuz, one of the world’s most critical oil corridors.
Tuggar argued that Nigeria’s large untapped reserves could provide Gulf states with an alternative source of crude and gas during such disruptions.
“It’s in line with what we’ve always advocated, that countries which might otherwise consider us competitors should partner with us and invest so they can diversify their market share,” Tuggar said.
Nigeria’s oil sector, long constrained by underinvestment, theft, and pipeline vandalism, has recently shown signs of recovery. Tuggar said production has risen to about 1.7 million barrels per day, up from around 1.4 million barrels per day when President Bola Tinubu took office in 2023. With additional capital for upstream projects and pipeline infrastructure, he suggested output could increase further.
Some analysts have warned that rising instability in the Middle East, including tensions involving the United States and Israel with Iran, could prompt Gulf investors to delay projects in Africa. Tuggar, however, said the crisis could instead encourage deeper cooperation.
“It could make them want to work with countries like Nigeria that are rich in gas and oil to diversify market share for the benefit of both countries,” he said.
Despite these developments, energy analysts caution that major investment pledges in Nigeria often face lengthy approval processes and implementation challenges.
Domestically, the country continues to grapple with the effects of high oil prices because it still imports large quantities of refined petroleum products.
Tuggar noted that rising fuel costs have pushed up transport and food prices, pressures that are often felt more strongly during Ramadan when consumption typically increases.
However, Nigeria expects its vulnerability to external shocks to decline as domestic refining capacity expands. The massive Dangote Refinery, owned by Dangote Group, says it is operating at its nameplate capacity of 650,000 barrels per day, theoretically enough to meet the country’s fuel demand.
Tuggar said hydrocarbons would remain central to the global energy mix for years. “The world consumes about 105 to 106 million barrels per day,” he said. “I don’t see that changing much anytime soon, so we need to work together so we have enough hydrocarbons available.”
