Nigeria’s Minister of Foreign Affairs, Yusuf Tuggar, has called on Gulf oil and gas producers to see Nigeria as a strategic partner rather than a competitor in the global energy market, particularly during periods of geopolitical crisis that threaten the stability of supply.
His remarks come as renewed tensions in the Middle East have disrupted oil shipments through the Strait of Hormuz, a vital maritime corridor responsible for transporting roughly a fifth of the world’s oil supply. The conflict involving Iran has led to interruptions in shipping routes, forcing some exporters to suspend deliveries and contributing to spikes in global oil prices.
According to Tuggar, Nigeria’s vast but largely untapped oil and gas reserves present an opportunity for Gulf producers to diversify supply sources during crises while strengthening energy security in global markets. He argued that collaboration with Nigeria would allow energy-producing nations to maintain stable market share while ensuring that supply disruptions in one region do not significantly destabilize global flows.
Tuggar noted that Nigeria has long advocated partnerships with other energy-producing nations rather than competition, particularly with countries in the Gulf whose economies are also heavily dependent on hydrocarbon exports.
He emphasized that energy-producing countries should explore cooperative arrangements that allow them to invest in each other’s markets and production capacity, thereby creating a diversified network of supply capable of responding to geopolitical shocks.
Nigeria’s oil sector, which has faced persistent challenges including underinvestment, crude theft, and pipeline vandalism, has nevertheless shown signs of recovery in recent years. The minister disclosed that national output has increased from about 1.4 million barrels per day when President Bola Tinubu assumed office in 2023 to approximately 1.7 million barrels per day.
Tuggar said further growth could be achieved if fresh investment is directed toward developing oil fields and expanding pipeline infrastructure across the country. Such investments, he argued, would help Nigeria maximize its hydrocarbon resources while strengthening its role in the global energy supply chain.
While some analysts believe that escalating tensions involving Iran and attacks targeting Gulf energy infrastructure could make Middle Eastern countries cautious about investing in African energy projects, Tuggar suggested the opposite scenario is also possible.
He explained that geopolitical instability in the region could encourage Gulf nations to collaborate more closely with energy-rich countries like Nigeria as a means of diversifying supply channels and reducing vulnerability to disruptions in any single region.
Nigeria has recently taken steps to deepen economic cooperation with Gulf states. In January, Nigeria and the United Arab Emirates signed the Comprehensive Economic Partnership Agreement, a deal that officials in Abuja believe will strengthen trade relations and unlock new investment opportunities across several sectors, including energy.
There have also been indications of growing interest from investors linked to Qatar, particularly in Nigeria’s natural gas sector, although specific timelines for those investments remain uncertain.
Energy analysts, however, caution that major investment pledges in Nigeria often face prolonged approval processes and implementation challenges due to regulatory complexities, infrastructure gaps, and bureaucratic hurdles.
Tuggar acknowledged that Nigeria has felt the economic consequences of rising global oil prices despite being one of Africa’s leading producers. The country still imports significant volumes of refined petroleum products, a situation that has contributed to higher transportation and food costs domestically.
These pressures have been particularly noticeable during Ramadan, the Muslim fasting period when consumption patterns typically increase and demand for goods and services rises across many communities.
However, the minister expressed confidence that Nigeria’s vulnerability to such price shocks will decline as domestic refining capacity expands.
A key development in that regard is the large-scale private refinery owned by Aliko Dangote. The facility, widely known as the Dangote refinery, has a nameplate processing capacity of about 650,000 barrels per day and is expected to significantly reduce Nigeria’s reliance on imported fuel while meeting much of the country’s domestic demand.
Tuggar also stressed that hydrocarbons will continue to play a major role in the global energy system for the foreseeable future. Global consumption currently stands at roughly 105 to 106 million barrels of oil per day, a level he believes is unlikely to decline dramatically in the near term.
Given this reality, he argued that cooperation among oil-producing nations will remain essential to ensuring that adequate supplies of crude oil and natural gas are available to meet global demand while maintaining stability in international energy markets.
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