Minister of Foreign Affairs, Yusuf Tuggar, has called on Gulf oil and gas producers to partner with Nigeria and invest in its energy sector to help diversify global supply during geopolitical crises.

Tuggar said the current tensions in the Middle East highlight the need for countries that traditionally see Nigeria as a competitor in the oil market to instead view it as a strategic partner.

His remarks come amid disruptions to oil shipments through the Strait of Hormuz, a critical corridor that carries roughly one-fifth of global oil supply.

The conflict involving Iran and regional powers has forced some exporters to halt shipments and triggered volatility in global oil prices.

Speaking on the situation, Tuggar said Nigeria’s large untapped oil and gas reserves could serve as an alternative supply source for Gulf producers seeking to mitigate risks to global energy flows.

“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,” Reuters quoted Tuggar as saying.

Nigeria, Africa’s largest oil producer, has long struggled with underinvestment, crude theft and pipeline vandalism that constrained production for years. However, the minister noted that output has begun to recover.

According to Tuggar, Nigeria’s total crude production has increased to about 1.7 million barrels per day, up from around 1.4 million barrels per day when President Bola Tinubu assumed office in 2023.

He added that production could grow further if new capital flows into upstream projects and pipeline infrastructure.

While some analysts believe the escalating conflict could cause Gulf investors to delay expansion plans in Africa, Tuggar suggested the opposite outcome was also possible.

“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, adding that investors might alternatively choose to hold back depending on how the crisis evolves.

Nigeria has been seeking to deepen economic ties with Gulf states as part of its strategy to attract foreign investment into the energy sector. In January, Nigeria signed a Comprehensive Economic Partnership Agreement with the United Arab Emirates, which Abuja believes could unlock new trade and investment opportunities.

Investors linked to Qatar have also announced plans to invest in Nigeria’s gas sector, although project timelines and implementation details remain unclear.

Energy analysts, however, caution that many investment pledges in Nigeria often face lengthy regulatory approvals and execution risks before projects move to the development stage.

Tuggar also acknowledged that Nigeria has felt the impact of rising global oil prices despite being a major producer, largely because the country still imports significant volumes of refined petroleum products.

Higher fuel costs have pushed up transport and food prices, particularly during Ramadan, when consumption typically increases.

Nevertheless, he said Nigeria is gradually becoming more resilient to global price shocks as domestic refining capacity expands.

The privately owned Dangote Refinery is currently operating at its nameplate capacity of about 650,000 barrels per day, which industry players say is sufficient to meet most of Nigeria’s domestic fuel demand.

Tuggar stressed that hydrocarbons will remain central to the global energy mix for years, despite growing investments in renewable energy.

“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,” he said.

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