Picnews
The ongoing Israel-Iran war has brought commercial opportunities for Nigeria, particularly in the energy sector. The Nigerian National Petroleum Company (NNPC) Limited sees stronger demand for its liquefied natural gas (LNG) cargoes due to the crisis. Executive Vice President Olalekan Ogunleye stated that NNPC is exploring opportunities to add two new LNG trains and pursuing a 12 million metric tons per annum (mtpa) LNG project alongside gas-based industrial hubs.
Nigeria’s strategic location, proximity to key consuming nations, and large gas reserves make it an attractive destination for investors. The country is 10 sailing days from Europe, close to the Atlantic Basin, and near Asia, making it a prime spot for LNG exports. Ogunleye emphasized that buyers are increasingly looking to Nigeria because of its proximity to key consuming nations and the scale of its gas reserves.
The conflict has led to increased interest from buyers, with NNPC holding talks with major International Oil Companies (IOCs) like Shell, Chevron, Total, Eni, and ExxonMobil. Nigeria’s crude oil is also considered one of the best in the world, making it a preferred investment destination. Ogunleye noted that before the crisis, Nigeria wasn’t seen as an attractive destination for investment, but the situation has changed.
The NNPC has started talks on adding two new LNG trains and is pursuing a 12 mtpa LNG project alongside gas-based industrial hubs to tap more than 200 trillion cubic feet of reserves in Nigeria. Nigeria LNG (NLNG), in which NNPC is the largest shareholder, can export up to 22 million metric tons per year and is building a seventh production train scheduled for completion in 2027.
The Centre for Promotion of Private Enterprises (CPPE) warns that the conflict could affect Nigeria’s oil revenue and economy. Higher crude prices could boost export receipts, improve foreign exchange inflows, and increase allocations under the Federation Account Allocation Committee (FAAC). However, revenue gains are contingent on production efficiency, and Nigeria’s current crude output is vulnerable to theft, pipeline vandalism, and underinvestment.
The CPPE recommends strengthening oil production, building fiscal buffers, accelerating refining capacity, and sustaining FX market reforms to mitigate risks. The Dangote Refinery is also seeing a surge in demand as the Iran war disrupts Africa’s fuel supply. Countries like Ghana, South Africa, and Kenya are turning to Nigeria’s refinery for fuel supplies.
The disruption caused by the US-Israel war on Iran is rippling across global energy markets, triggering shortages from Asia to Africa and highlighting vulnerabilities in fuel supply systems. Nigeria’s energy sector is poised to benefit from the situation, with the NNPC and Dangote Refinery playing key roles.
