By Yunusa Oluwatomiwa
The ongoing geopolitical tensions in the Middle East are beginning to reshape global energy dynamics, with experts warning of a major disruption to oil supply chains following a sharp decline in traffic through the Strait of Hormuz.
At a recent webinar hosted by the Major Energies Marketers Association of Nigeria (MEMAN) in collaboration with S&P Global, industry stakeholders described the situation as a “tectonic shift” in the global energy market.
According to discussions at the session, the Strait of Hormuz one of the world’s most critical oil transit routes has seen vessel traffic drop significantly. While about 60 tankers typically pass through the corridor daily, current figures have fallen to just two or three, raising concerns about supply bottlenecks and increased freight costs.
Experts noted that the disruption, though centered in the Middle East, is already having global implications, including rising clean freight rates and a restructuring of supply routes, with West Africa not left out.
Despite these challenges, Nigeria was identified as being in a relatively stronger position compared to other African countries, largely due to the operational capacity of the Dangote Refinery.
Speakers at the webinar highlighted that the refinery has reached its nameplate capacity of 650,000 barrels per day as of February 2026, with projections to scale up to 700,000 barrels per day. This development, they noted, has significantly reduced Nigeria’s dependence on imported refined products.
Nigeria is now seen as a potential exporter of refined products such as jet fuel and diesel, with production levels sufficient to meet domestic demand and supply excess volumes to other West African countries.
However, despite increased local refining, consumers in Nigeria continue to face high fuel prices, a situation experts attributed to the global nature of oil pricing.
Participants explained that products such as crude oil, petrol, and diesel are still priced based on international market benchmarks, meaning local production does not automatically translate to lower pump prices.
They also pointed to market realities such as price volatility, widening margins in international markets, and delays in price adjustments due to inventory cycles, noting that prices often rise quickly but decline more gradually.
Looking ahead, the speakers warned that Nigeria’s current advantage may be temporary if the Middle East crisis persists. Although the country currently maintains over 30 days of petrol supply, prolonged disruption could lead to increased competition for supply, particularly as European markets seek alternatives to Middle Eastern oil.
This, they said, could drive up prices further and potentially reduce demand, with wider economic implications.
The webinar concluded that while Nigeria’s growing refining capacity has positioned it as a key player in the region, there is a need to balance market realities with consumer protection, especially in a period of global uncertainty.
Experts emphasized that the evolving situation presents both an opportunity and a challenge, as Nigeria transitions from a largely import dependent market to a more influential player in the global energy space.Hormuz crisis tests global oil supply as Nigeria shows signs of resilience
By Yunusa Oluwatomiwa
The ongoing geopolitical tensions in the Middle East are beginning to reshape global energy dynamics, with experts warning of a major disruption to oil supply chains following a sharp decline in traffic through the Strait of Hormuz.
At a recent webinar hosted by the Major Energies Marketers Association of Nigeria (MEMAN) in collaboration with S&P Global, industry stakeholders described the situation as a “tectonic shift” in the global energy market.
According to discussions at the session, the Strait of Hormuz one of the world’s most critical oil transit routes has seen vessel traffic drop significantly. While about 60 tankers typically pass through the corridor daily, current figures have fallen to just two or three, raising concerns about supply bottlenecks and increased freight costs.
Experts noted that the disruption, though centered in the Middle East, is already having global implications, including rising clean freight rates and a restructuring of supply routes, with West Africa not left out.
Despite these challenges, Nigeria was identified as being in a relatively stronger position compared to other African countries, largely due to the operational capacity of the Dangote Refinery.
Speakers at the webinar highlighted that the refinery has reached its nameplate capacity of 650,000 barrels per day as of February 2026, with projections to scale up to 700,000 barrels per day. This development, they noted, has significantly reduced Nigeria’s dependence on imported refined products.
Nigeria is now seen as a potential exporter of refined products such as jet fuel and diesel, with production levels sufficient to meet domestic demand and supply excess volumes to other West African countries.
However, despite increased local refining, consumers in Nigeria continue to face high fuel prices, a situation experts attributed to the global nature of oil pricing.
Participants explained that products such as crude oil, petrol, and diesel are still priced based on international market benchmarks, meaning local production does not automatically translate to lower pump prices.
They also pointed to market realities such as price volatility, widening margins in international markets, and delays in price adjustments due to inventory cycles, noting that prices often rise quickly but decline more gradually.
Looking ahead, the speakers warned that Nigeria’s current advantage may be temporary if the Middle East crisis persists. Although the country currently maintains over 30 days of petrol supply, prolonged disruption could lead to increased competition for supply, particularly as European markets seek alternatives to Middle Eastern oil.
This, they said, could drive up prices further and potentially reduce demand, with wider economic implications.
The webinar concluded that while Nigeria’s growing refining capacity has positioned it as a key player in the region, there is a need to balance market realities with consumer protection, especially in a period of global uncertainty.
Experts emphasized that the evolving situation presents both an opportunity and a challenge, as Nigeria transitions from a largely import dependent market to a more influential player in the global energy space.the Middle East are beginning to reshape global energy dynamics, with experts warning of a major disruption to oil supply chains following a sharp decline in traffic through the Strait of Hormuz.
At a recent webinar hosted by the Major Energies Marketers Association of Nigeria (MEMAN) in collaboration with S&P Global, industry stakeholders described the situation as a “tectonic shift” in the global energy market.
According to discussions at the session, the Strait of Hormuz one of the world’s most critical oil transit routes has seen vessel traffic drop significantly. While about 60 tankers typically pass through the corridor daily, current figures have fallen to just two or three, raising concerns about supply bottlenecks and increased freight costs.
Experts noted that the disruption, though centered in the Middle East, is already having global implications, including rising clean freight rates and a restructuring of supply routes, with West Africa not left out.
Despite these challenges, Nigeria was identified as being in a relatively stronger position compared to other African countries, largely due to the operational capacity of the Dangote Refinery.
Speakers at the webinar highlighted that the refinery has reached its nameplate capacity of 650,000 barrels per day as of February 2026, with projections to scale up to 700,000 barrels per day. This development, they noted, has significantly reduced Nigeria’s dependence on imported refined products.
Nigeria is now seen as a potential exporter of refined products such as jet fuel and diesel, with production levels sufficient to meet domestic demand and supply excess volumes to other West African countries.
However, despite increased local refining, consumers in Nigeria continue to face high fuel prices, a situation experts attributed to the global nature of oil pricing.
Participants explained that products such as crude oil, petrol, and diesel are still priced based on international market benchmarks, meaning local production does not automatically translate to lower pump prices.
They also pointed to market realities such as price volatility, widening margins in international markets, and delays in price adjustments due to inventory cycles, noting that prices often rise quickly but decline more gradually.
Looking ahead, the speakers warned that Nigeria’s current advantage may be temporary if the Middle East crisis persists. Although the country currently maintains over 30 days of petrol supply, prolonged disruption could lead to increased competition for supply, particularly as European markets seek alternatives to Middle Eastern oil.
This, they said, could drive up prices further and potentially reduce demand, with wider economic implications.
The webinar concluded that while Nigeria’s growing refining capacity has positioned it as a key player in the region, there is a need to balance market realities with consumer protection, especially in a period of global uncertainty.
Experts emphasized that the evolving situation presents both an opportunity and a challenge, as Nigeria transitions from a largely import dependent market to a more influential player in the global energy space.
