By Juliet Ezeh
Nigeria could benefit economically from the recent surge in global oil prices triggered by geopolitical tensions, former senator Magnus Abe has said.
Abe made the remarks on Monday shortly after appearing before the Senate Committee on Petroleum Resources (Upstream), where he was screened and cleared for appointment as Chairman of the Board of the Nigerian Upstream Petroleum Regulatory Commission.
Speaking with journalists after the screening, the former lawmaker said the escalating global crisis affecting oil markets has created both challenges and opportunities for Nigeria.
According to him, while rising crude prices could increase the cost of fuel and create economic pressure for consumers, the development could also boost national revenue from oil exports.
“This is not just a Nigerian challenge; it is a global challenge,” Abe said, referring to the ongoing geopolitical tensions affecting energy markets.
He explained that the increase in oil prices could make previously unprofitable investments in marginal oil fields viable again, allowing Nigeria to expand production and attract new investments into the sector.
Abe also highlighted the potential benefits for Nigeria’s gas industry, noting that disruptions in global energy supply chains could create opportunities for the country to strengthen its position in the international gas market.
“If gas supplies are being disrupted globally, this is an opportunity for Nigeria to optimise its own gas production, which will create jobs and new economic opportunities,” he said.
He added that strengthening Nigeria’s energy sector could help the country take advantage of favourable market conditions while supporting long-term economic growth.
Earlier, the Senate approved Abe’s nomination to lead the board of the Nigerian Upstream Petroleum Regulatory Commission after he appeared before lawmakers for screening.
The nomination was forwarded to the National Assembly by President Bola Tinubu as part of appointments to the boards of key petroleum regulatory agencies.
Abe expressed appreciation to the president for the nomination and pledged to support the administration’s reform agenda in the energy sector.
He noted that the framework established by the Petroleum Industry Act provides mechanisms to address long-standing challenges in the oil industry, including oil theft and disputes with host communities.
According to him, initiatives such as the Host Communities Fund have already created incentives for local communities to protect oil infrastructure and support production activities.
Industry observers say Nigeria could potentially benefit from higher oil prices if the government is able to increase production levels and improve security in oil-producing regions.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.