THE Nigerian government is currently reaping the benefits of rising oil prices following the disruptions in global oil supply occasioned by the United States and Israel’s attacks on Iran.
Already, concerns about supply disruptions sent Brent crude surging roughly by 10 per cent on Monday to over $82 a barrel.
Nigeria’s proposed budget is premised on a crude oil price of $64.85 per barrel. However, the oil spike means more revenue accruals for the Nigerian government.
“Definitely, the government will gain in terms of revenue accruals with the oil price surge, but the ordinary Nigerian would pay higher for fuel as the price continues to rise beyond the budget benchmark,” said the Founding Director of the Centre for Economic Policy Analysis, Ndubisi Ifeanyi Nwokoma, a Professor of Financial Economics.
He urged Nigeria to export more oil and shore up its revenue, instead of relying on borrowing to fund its budget.
Saudi Arabia shut its biggest domestic oil refinery on Monday after a drone strike, a source said, as Israeli and US strikes and Iranian retaliation forced shutdowns of oil and gas facilities across the Middle East.
A wave of attacks on the region stretched into a third day, resulting in the precautionary suspension of most oil production in Iraqi Kurdistan and several major Israeli gas fields, throttling exports to Egypt.
According to Reuters, the State oil giant Saudi Aramco (2222.SE) opened a new tab 550,000 barrels per day (bpd) Ras Tanura refinery, which was shut as a precautionary measure.
Oil prices surged to above $82 a barrel, the highest since January 2025, as the conflict ground shipping to a near halt in the Strait of Hormuz, through which a fifth of global oil supply flows.
In Iraqi Kurdistan, which exported 200,000 barrels of oil per day (bpd) via pipeline to Turkey’s Ceyhan port in February, companies including DNO (DNO.OL), Gulf Keystone Petroleum (GKP.L), Dana Gas (DANA.AD), and HKN Energy have stopped output at their fields as a precaution, with no damage reported.
Reuters reports also confirmed that the Israeli government instructed Chevron (CVX.N) to temporarily shut down the giant Leviathan gas field, where it is in the process of expanding capacity to around 21 billion cubic metres a year as part of a $35 billion export deal to Egypt.
A spokesperson for Chevron, which also operates the Tamar gas field offshore Israel, said its facilities were safe.
Qatar’s government said an energy facility belonging to gas giant Qatar Energy was attacked by two Iranian drones on Monday, with authorities still assessing the damage.
The ICIR reported that American forces launched “major combat operations” against Iran, and the country’s Supreme Leader, Ayatollah Ali Khamenei, and some of his key officials were confirmed dead in the attacks.
The US President Donald Trump said the joint US-Israeli offensive could last at least four weeks, as a senior White House official confirmed “Operation Epic Fury” would continue despite signals from new Iranian leadership, suggesting a willingness to talk.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.
It is very important that Nigeria government make good use of the increase in the revenue through oil. They should not siphon the increase through corruption that has become a norm in the country.