Foreign Minister Yusuf Tuggar has said that the Middle East conflict shows why Gulf oil and gas producers should regard Nigeria as a partner, not a rival, to help diversify supply during crises.
Tuggar told Reuters during an interview following the war in Iran, which has disrupted shipments through the Strait of Hormuz, a corridor for about a fifth of global supply, forcing exporters to halt shipments and triggering price spikes.
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.
Long hampered by underinvestment, theft, and pipeline vandalism, Nigeria has lifted total output to about 1.7 million barrels per day from 1.4 million when President Bola Tinubu took office in 2023 and could grow further with new capital for fields and pipelines, Tuggar added.
Some analysts say U.S. and Israeli strikes on Iran and Tehran’s attacks on Gulf states, could prompt the region to defer African bets, but Tuggar said the opposite could also prove true.
“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.”
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.
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.
The US will release 172 million barrels of oil from its Strategic Petroleum Reserve in a bid to reduce prices that have soared due to the war in Iran.
But he said Nigeria was better placed to withstand longer‑term shocks as domestic refining expands.
The Dangote Refinery has said it is operating at a nameplate capacity of 650,000 barrels per day, enough to meet domestic needs.
Oil will stay “relevant for many years to come,” 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.”
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Iran Israel OIL Tuggar War
