Nigeria Urges Global Oil Producers to Invest as Africa Emerges as a Strategic Energy Power

Abuja — As geopolitical tensions disrupt global energy supply chains, Nigeria is positioning itself at the center of a shifting oil and gas landscape, calling on international producers to invest in Africa’s largest economy to diversify global energy supply.

Speaking amid growing instability in the Middle East, Nigeria’s foreign minister Yusuf Tuggar said the ongoing conflict demonstrates why global producers — particularly Gulf states — should view Nigeria as a strategic partner rather than a competitor.

The remarks come as disruptions around the Strait of Hormuz, a maritime corridor responsible for roughly 20% of the world’s oil supply, have triggered volatility in global markets.

According to Tuggar, Africa — and Nigeria in particular — can play a stabilizing role in the global energy system.

“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,” he said.

Africa’s Energy Moment

The crisis has reinforced a broader reality in global energy markets: the need for diversified supply sources.

Nigeria holds some of the largest oil and natural gas reserves in Africa, yet the sector has historically struggled with underinvestment, pipeline vandalism and production disruptions.

Recent reforms and increased security measures have helped the country restore output to around 1.7 million barrels per day, up from 1.4 million barrels per day when President Bola Ahmed Tinubu took office in 2023.

Officials say additional investment in pipelines, offshore fields and gas infrastructure could unlock significantly higher production.

For global producers facing geopolitical supply risks, Nigeria represents a major opportunity.

Strategic Partnerships Taking Shape

Energy partnerships between Nigeria and Gulf states are already beginning to emerge.

In January, Nigeria signed a Comprehensive Economic Partnership Agreement with the United Arab Emirates aimed at expanding trade and investment between the two nations.

Meanwhile, investors linked to Qatar have also announced plans to explore gas investments in Nigeria, although the projects remain in early stages.

Analysts say these partnerships could play a significant role in strengthening Africa’s position within the global energy market.

Domestic Refining Strengthens Energy Security

Nigeria is also making progress in reducing one of its biggest structural challenges: reliance on imported refined fuel.

The privately owned Dangote Refinery — one of the largest refineries in the world — is now operating at a capacity of 650,000 barrels per day, enough to meet Nigeria’s domestic fuel demand.

This development is expected to improve energy security while helping stabilize fuel prices across the country.

Rising global oil prices, however, still affect Nigeria’s economy because imported fuel costs influence transportation and food prices — particularly during periods of high consumption such as Ramadan.

A Long-Term Role for Oil

Despite accelerating global investment in renewable energy, Nigeria’s leadership believes hydrocarbons will remain a central part of the global economy for decades.

The world currently consumes roughly 105–106 million barrels of oil per day, a figure officials say is unlikely to decline sharply in the near future.

“At the moment the world consumes about 105 to 106 million barrels per day,” Tuggar said. “I don’t see that changing much anytime soon.”

For Nigeria, that reality presents both a challenge and an opportunity.

With the right investment and policy stability, Africa’s largest oil producer could become one of the key pillars supporting global energy supply during periods of geopolitical uncertainty.

As energy markets adjust to new risks and shifting alliances, Nigeria’s message to global producers is clear: Africa is no longer just part of the supply chain — it is becoming central to the future of global energy security.