Oil producers should invest in Nigeria to diversify supply in time of crisis- Tuggar

Nigeria has urged global oil producers to consider investing in the country as part of efforts to diversify energy supply during global disruptions.

Nigeria’s Minister of Foreign Affairs, Yusuf Tuggar, stated that geopolitical tensions affecting oil shipments in the Middle East highlight the importance of diversifying global supply sources.

He noted that disruptions to shipments through the Strait of Hormuz, a corridor responsible for roughly one-fifth of global oil supply, have increased market volatility and pushed prices higher.

According to the minister, Nigeria’s untapped oil and gas reserves present an opportunity for international producers to diversify supply while strengthening partnerships.

He said Nigeria’s oil production had increased to about 1.7 million barrels per day from about 1.4 million barrels per day when the current administration took office.

The minister added that further investments in fields and pipelines could significantly expand the country’s output capacity.

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Nigeria has also been engaging international partners to deepen investment in the energy sector.

The Federal Government recently signed a Comprehensive Economic Partnership Agreement with the United Arab Emirates aimed at expanding trade and investment opportunities.

Investors linked to Qatar have also indicated interest in gas sector investments in Nigeria.

Tuggar noted that although higher oil prices could increase the cost of refined petroleum imports, expanding domestic refining capacity would help cushion long-term shocks.

He pointed to the operations of the Dangote Refinery, which has a processing capacity of about 650,000 barrels per day and is expected to meet a large portion of Nigeria’s domestic fuel demand.

The minister added that global demand for hydrocarbons remains strong, with world consumption estimated at about 105 to 106 million barrels per day.

He said international cooperation would remain essential to ensure stable supply and meet long-term energy demand.