Iran–U.S. tensions: Nigeria can balance rising fuel costs with higher oil revenue – Magnus Abe

By Haruna Salami

President Bola Tinubu’s nominee for appointment as Chairman, Board of the Nigeria Upstream Petroleum Regulatory Commission NUPRC, Senator Magnus Abe has said that the ongoing tensions between Iran and the United States, with higher fuel prices in Nigeria, can still provide an opportunity for the country to benefit from increased oil revenues if the situation is properly managed.
Abe stated this Monday after his screening by the Senate Committee on Petroleum Upstream in answer to questions from journalists at the National Assembly over the impact of the conflict on Nigerians, particularly the rising cost of fuel, Abe described the situation as a global challenge rather than a problem peculiar to Nigeria.
He noted that while the crisis may push up fuel prices, it could also lead to increased earnings from Nigeria’s crude oil exports.
“This is a very difficult time for the entire world. It is not just a Nigerian challenge; it is a global challenge. However, Nigeria is in a better position than many other countries to ride out this storm,” he said.
According to him, the effect of the crisis should be viewed from a balanced perspective because higher global oil prices could boost Nigeria’s oil revenue, thereby offsetting some of the economic pressures associated with rising fuel costs.
He also stressed that as part of the global community, Nigeria cannot completely isolate itself from international developments that influence energy markets.
Beyond the economic implications, Abe expressed concern over the humanitarian cost of the conflict, noting that lives are being lost and calling for a quick resolution.
“Our prayers should be that this conflict, which is unnecessary and harmful to the entire world, is brought to an end as quickly as possible so that global recovery can begin,” he said.
He further urged Nigerians to see the crisis not only as a challenge but also as an opportunity for growth within the country’s energy sector.
According to him, disruptions in global gas supply could provide Nigeria with the opportunity to increase and optimize its gas production, thereby creating jobs and expanding economic opportunities.
He added that rising oil prices could also make investments in marginal oil fields more profitable, opening new avenues for development in the oil and gas industry.
Mr. Abe was not asked a single question during the screening exercise, but was asked to “take a bow and go” in line with the tradition and rules of the Senate since he was a former senator and incidentally then chairman of the same committee screening him.
“The nominee also expressed appreciation to President Bola Ahmed Tinubu for the opportunity to serve on the board of the industry, describing the appointment as “a privilege and a chance to contribute to the administration’s Renewed Hope Agenda.
“I am sincerely grateful to Mr. President, the Commander-in-Chief of the Armed Forces, President Bola Ahmed Tinubu, for considering not just me but other members of this board worthy of serving this country,” he said.
He assured Nigerians that the board would work diligently to support reforms and improve the performance of the oil and gas sector.
He pointed to the Petroleum Industry Act (PIA) as a strong framework capable of addressing many of the longstanding challenges in the sector, including pipeline vandalism.
According to him, provisions such as the Host Communities Fund have made host communities stakeholders in oil production, giving them a direct benefit from industry operations.
“With the PIA and the Host Communities Fund, host communities are now stakeholders in the industry. They benefit directly from production, and nobody destroys what he benefits from,” he said.
He added that by working closely with industry management and other stakeholders, the framework provided by the PIA could help create a more stable and enabling environment for growth and prosperity in Nigeria’s oil and gas sector.