The Minister of Foreign Affairs, Mr Yusuf Tuggar, has positioned Nigeria as a strategic partner for Gulf oil and gas producers amid growing concerns over supply disruptions caused by the conflict in the Middle East.
Mr Tuggar told Reuters in an interview that the ongoing tensions involving Iran and the resulting disruptions to shipments through the Strait of Hormuz highlight the need for broader cooperation among energy-producing nations. The waterway, which carries roughly a fifth of the world’s oil supply, has faced shipping interruptions since the conflict escalated, prompting exporters to suspend some cargo movements and pushing global crude prices higher.
According to him, Nigeria’s untapped reserves offer Gulf states an alternative source of crude and gas at a time when global flows are vulnerable, and demand for hydrocarbons is set to remain strong for years.
“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, working with us,” he said.
“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, or they could hold back,” he added.
Nigeria and the United Arab Emirates signed a pact in January, the Comprehensive Economic Partnership Agreement, that the federal government said should unlock trade and investment.
Qatar‑linked investors have also announced plans for investment in gas in the country.
Mr Tuggar said Nigeria has felt the pain of costlier oil because it imports large volumes of refined products, lifting transport and food prices, especially during the Muslim fasting month of Ramadan, when consumption typically rises.
Meanwhile, the International Energy Agency (IEA) and its 32 member states will release 400 million from emergency crude stockpiles to cushion the effect. The US, one of the members, will release 172 million barrels of oil from its Strategic Petroleum Reserve in a bid to reduce prices that have soared more than 50 per cent.
For Mr Tuggar, Nigeria was better placed to withstand longer‑term shocks as domestic refining expands.
On its part, the 650,000 barrels per day Dangote Refinery has said it is operating at good capacity, enough to meet domestic needs.
Oil will stay “relevant for many years to come,” Mr Tuggar added.
“At the moment, the world consumes about 105 to 106 million barrels per day. I don’t see that changing much anytime soon, so we need to work together so we have enough hydrocarbons available.”