Oil & Energy
Nigeria Among Oil Exporters To Benefit From Higher Energy Prices —— UNCTAD
The United Nations Conference On Trade and Development (UNCTAD) has named Nigeria among the oil and gas exporters earmarked to benefit from higher global energy prices.
UNCTAD disclosed this in it’s 2026 Trade and Development Report: The Geoeconomics of Development.
The report identifies Nigeria, Angola, Guyana and Kazakhstan as exporters that could benefit from the energy shock triggered by the conflict in the Middle East.
It warned however that insufficient domestic refining capacity could erode some of the gains
The report, titled ‘Resilience and its limits’ stated that the conflict in the Middle East has damaged energy infrastructure and disrupted transit through the Strait of Hormuz, a major route for seaborne crude oil and liquefied natural gas.
These disruptions, it said, triggered the largest monthly loss of global energy supply on record.
UNCTAD said “Oil and gas exporters outside the Strait of Hormuz, among them Angola, Guyana, Kazakhstan and Nigeria, are positioned to benefit from higher prices.”
“Where domestic refining capacity is insufficient, however, that advantage is partly offset by the steeper rise in refined product prices.”
The report also warns that the energy shock could fuel inflation, tighten monetary policy, increase borrowing costs and heighten financial stability risks.
It argues that addressing energy supply constraints would be more effective against supply-driven inflation than relying solely on monetary and fiscal tightening.
The report calls for stronger multilateral support, increased domestic development financing and greater use of local-currency funding to close financing gaps.
UNCTAD further highlights renewable energy as an opportunity for developing countries to strengthen energy security and reduce exposure to external supply shocks.
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The Rural Electrification Agency ( REA) has secured a N100bn financing facility from Stanbic IBTC Bank to support renewable energy developers and expand electricity access to unserved and underserved communities across Nigeria.
The Managing Director/CEO, Rural Electrification Agency, Abba Aliyu, who made this known in a statement, said the agreement would provide eligible developers participating in REA-led electrification programmes, including the World Bank-funded Distributed Access through Renewable Energy Scale-up Project, with access to finance for equipment procurement.
Under the memorandum of understanding signed between the two organisations, Stanbic IBTC would provide a N100bn revolving loan facility with a one-year tenor to eligible project developers.
The amount accessible to each developer would be determined on a case-by-case basis, subject to the underlying grant agreement, the developer’s capacity and the bank’s credit assessment.
Aliyu said the facility would help address one of the major challenges facing renewable energy project delivery, which is access to capital after project approval.
“One of the lessons from our experience under the Nigeria Electrification Project is that having a viable project and an approved grant is not always enough. Developers also need access to the capital required to procure equipment and commence implementation.
“This partnership with Stanbic IBTC is therefore important because it connects our results-based financing framework with commercial finance, giving credible developers a stronger pathway to move projects from approval to delivery and, ultimately, connect more Nigerians to reliable electricity,” he stated.
The partnership is expected to reduce financing constraints that have previously affected the pace of renewable energy project delivery.
The Head, Energy and Infrastructure, Stanbic IBTC Bank, Richard Inegbedion, said the bank’s participation reflected its commitment to infrastructure development and Nigeria’s energy transition.
“The energy access challenge requires strong collaboration between government, developers and financial institutions. At Stanbic IBTC, we recognise that renewable energy projects require financing structures that understand both the opportunities and the realities of the sector.
“Through this partnership with REA, we are creating a financing platform that can help eligible developers access the capital they need to execute projects, while contributing to the development of sustainable energy infrastructure and economic activity across Nigeria,” he noted.
Representing the renewable energy developer community, the Managing Director/CEO, Asolar Systems Nigeria Limited, Hakeem Shagaya, maintained that appropriately structured financing would be critical to delivering renewable energy solutions at the scale required under DARES.
“For developers, access to finance is one of the most important factors determining how quickly an approved renewable energy project can move into implementation.
“A financing framework that is aligned with REA’s result-based structure can significantly improve our ability to procure equipment, mobilise resources and deliver projects within the required timelines.
“ We welcome this partnership because it brings the developer, government and financial sector closer together around a common objective, delivering reliable electricity to communities that need it,” Shagaya submitted.
Beyond the lending facility, Stanbic IBTC will support the transaction through a collection platform designed to enhance financial inclusion and project sustainability.
The bank would also provide financial advisory solutions, including linking developers with original equipment manufacturers and providing international trade tools where practicable.
REA would continue to provide programme-side oversight through developer prequalification, project approvals, grant agreements, authentication of relevant documentation, among others.
The agency said the collaboration was expected to strengthen private sector participation in Nigeria’s electricity access drive by improving access to debt financing, reducing financing-related delays and enabling developers to mobilise equipment and resources more effectively.
According to the statement, the MoU would remain in force throughout the tenure of the World Bank-funded DARES programme managed by REA and will terminate at the end of the programme and upon full repayment of facilities disbursed under the arrangement, subject to the terms of the agreement.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is targeting the recovery of more than 788,000 barrels of oil production per day currently shut-in across 63 operators, while pushing offshore projects estimated at between $30 billion and $50 billion towards Final Investment Decisions (FID).
The commission is also accelerating technical and regulatory approvals to support production growth.
The Commission also plans to use its newly launched 2026 licensing round to deepen exploration and attract fresh capital into Nigeria’s upstream sector, offering 40 oil and gas assets to prospective investors.
Speaking at the 2026 Energy Conference of the Association of Energy Correspondents of Nigeria (NAEC), with the theme “Access to Assets: Empowering Players and Driving Growth,” held in Lagos, the NUPRC’s Chief Executive, Oritsemeyiwa Eyesan, noted that restoring shut-in production, accelerating offshore developments and improving access to petroleum assets are central to Nigeria’s efforts to increase output and move closer to its long-term production ambitions.
Represented by the Assistant Director, Services Department, NUPRC, Mrs. Patricia Temisan-Olatunde, Eyesan explained that the commission’s strategy was aimed at removing investment barriers, increasing production and expanding government revenue.
Eyesan said more than 788,000bpd production has been identified as shut in across 63 operators.
She noted that recovering a substantial portion of that volume could provide a faster route to increased national production than waiting for newly awarded exploration acreage to move through the lengthy development cycle.
This year alone, she said, 77 wells have been successfully re-entered, while 128 wells have been approved for drilling.
“The measures are being implemented alongside executive orders issued by President Bola Tinubu aimed at encouraging investment in Nigeria’s deep offshore petroleum sector. The combined reforms and accelerated approvals were intended to reduce delays and improve the investment environment for upstream operators,” she said.
While noting the launch of its 2026 licensing round with 40 assets on offer, following previous licensing exercises conducted in 2022/2023, 2024 and 2025, Eyesan said the successive rounds were designed to deepen exploration, create jobs, increase production and expand government revenue.
At the 2025 licensing round, 50 oil and gas blocks were offered, attracting interest from nearly 300 companies, with 37 assets eventually taken up, including acreages in frontier basins.
Eyesan disclosed that for the first time, the Anambra Basin, Benue Trough, Chad Basin and Benin Basin attracted significant investor interest, indicating growing attention beyond Nigeria’s traditional Niger Delta producing region.
She said the assets offered in the 2025 round, subject to successful development, have the potential to add about 500 million barrels to Nigeria’s crude oil reserve adding that they are also expected to contribute at least 300,000 bpd of crude oil and condensate within five years, alongside an estimated 20 trillion cubic feet of additional gas reserves and 500 million standard cubic feet per day of gas production.
The potential output, Eyesan said, would support Nigeria’s ambition of reaching three million barrels per day by 2030 and contribute to the Federal Government’s Decade of Gas initiative.
The Commission stressed that the success of licensing rounds should ultimately be measured by what happens after awards are made.
Eyesan said access to petroleum assets must translate into actual development and production, rather than simply the allocation of acreage.
The NUPRC, she further explained, is therefore seeking to make the licensing process more predictable by publishing eligibility requirements, bid parameters, evaluation criteria and conditions of award ahead of the 2026 exercise.
Bids will be submitted through a digital portal and evaluated according to published criteria, while the Commission said it would strengthen communication with bidders through its licensing portal, virtual data room, webinars and a dedicated help desk.
The objective, Eyesan said, was to ensure that eligible Nigerians and international investors compete on a level playing field.
“No bidder will know what others do nott material clarifications would be shared with all participants” she stated, adding that beyond new licensing, the Commission is focusing on bringing existing capacity back into production
As part of Federal Government’s measures to cushion the impact of rising global crude oil prices on Nigerian households, the Nigerian National Petroleum Company (NNPC) Limited has agreed to forgo its petrol retail profit margin and sell the product at cost for 30 days.
The measure, backed by President Bola Tinubu, was announced last Thursday by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, alongside other interventions aimed at moderating fuel prices, reducing transport costs and supporting vulnerable households.
A press statement signed by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, last week, explained that under the arrangement, NNPC Retail would sell petrol without adding its retail profit margin, meaning that if its landing cost is ?1,300 per litre, the company will sell at the same price.
The company said the intervention was intended particularly to ease the burden on vulnerable households and commercial transport operators amid volatility in global crude oil and petrol prices.
Oyedele expressed hopes that other fuel marketers would emulate NNPC, noting that the current surge in prices was not expected to last long.
He, however, cautioned against interpreting the initiative as a return to petrol subsidy, which was removed on May 29, 2023.
The minister also announced plans for forward sales of crude oil to domestic refineries. He said the arrangement, alongside increased production and the release of previously committed crude, was expected to shield domestic petrol prices from fluctuations in the international market.
Oyedele said the arrangement was neither a subsidy nor price control but a mechanism for smoothing out price fluctuations over time.
He explained that maintaining prices at a relatively stable level would provide greater certainty for households and businesses than allowing sharp increases followed by subsequent reductions.
The minister said the ceiling would be reviewed monthly, with adjustments made in line with prevailing costs and the figures published to ensure transparency.
By: Lady Godknows Ogbulu
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