Economy

Nigeria Set to Benefit Most in Africa from Middle East Energy Crisis

Published

7 months ago

March 31, 2026

Q Tinny

Nigeria and other African nations stand to gain from the Middle East energy crisis, as oil and LNG buyers seek stable, cost-effective alternatives

Nigeria has emerged as the African country most likely to benefit from the ongoing Middle East energy crisis, according to energy analysts. Other African nations poised to gain include Libya, Angola, Gabon, Mozambique, Namibia, and Tanzania.

Also read: Marcos Declares Energy Emergency Over Middle East Crisis

The conflict in the Middle East has disrupted global energy supply, removing approximately 8 million barrels of oil per day and 20% of global liquefied natural gas (LNG) from the market.

As a result, European and Asian buyers are increasingly turning to African producers, attracted by lower insurance costs and more stable delivery routes compared to volatile regions like the Strait of Hormuz and the Red Sea.

The crisis has pushed Brent crude prices up by more than 50%, reaching around $110 per barrel, while the U.S. stock market has seen a nearly $4 trillion loss in value.

Analysts say Africa’s energy sector stands to benefit in the long term, with Nigeria at the forefront. The continent’s LNG capacity is expected to grow from around 80 million tons per year in 2025 to over 175 million tons by 2040.

Sub-Saharan LNG exports are projected to expand significantly by 2034, driven by major projects in Nigeria, Mozambique, Angola, Equatorial Guinea, and Cameroon.

Notable projects include TotalEnergies’ $20 billion LNG initiative in Mozambique, restarted after a five-year security-related pause, with production expected to commence in 2029.

Eni is developing a floating LNG gas field in Mozambique, with partial production already underway and more expected by 2028.

ExxonMobil is leading a $30 billion LNG project in Mozambique slated for production between 2030 and 2031.

The global energy crunch is also reviving long-delayed African initiatives such as the Trans-Saharan Gas Pipeline.

The project, which will transport gas from Nigeria through Niger and Algeria to Europe, aims to deliver 30 billion cubic metres of gas annually by 2027, providing Europe with an alternative to Russian energy supplies.

Also read: NLC Demands Energy Ministry Merger, Rejects Power Bailout

Experts conclude that Africa is steadily becoming a critical player in the global energy market, with Nigeria strategically positioned to capitalise on the current supply disruptions and long-term investment opportunities.

Up Next

FG Launches Hydropower Centre to Boost Rural Electricity Access

Don't Miss

NPA Unveils Bold Strategy to Boost Non-Oil Exports

Q Tinny

Click to comment

Economy

NRS Assures Taxpayers VAT Remains at 7.5% Amid Tax Reform Concerns

Published

1 day ago

October 27, 2026

Peculiar Adirika

NRS VAT rate remains 7.5%, the agency says, while addressing concerns over bank deductions, loans and the implementation of Nigeria’s tax reforms

The Nigeria Revenue Service (NRS) has assured taxpayers that Nigeria’s standard Value Added Tax (VAT) rate remains 7.5 per cent, while addressing concerns over the implementation of the country’s new tax reforms.

Also read: Wike Celebrates Fintiri at 59, Hails Him as Loyal Friend

The assurance was given by the Tax Administrator responsible for Kano, Jigawa and Katsina states, Samaila Abdullahi, during an NRS stakeholders’ engagement and tax reform sensitisation programme in Kano.

Abdullahi said concerns raised by individuals, traders, business owners and other stakeholders about the new tax laws were understandable, particularly questions relating to bank transactions, loans, family transfers, business income and the potential impact on small businesses.

He urged taxpayers to understand the reforms through the provisions of the law rather than rely on assumptions or misinformation.

According to him, the tax laws do not automatically authorise deductions from personal bank accounts.

He stressed that tax collection and recovery must follow the applicable legal provisions and procedures.

Abdullahi also clarified that money received as a loan should not automatically be classified as business income or profit, explaining that proper documentation is essential to establish the nature of a transaction.

“For instance, when a trader receives a loan of N500,000, the amount should not automatically be treated as N500,000 in sales or profit, provided the transaction is properly documented,” he said.

The NRS official’s comments were aimed at addressing public concerns about how the new tax framework would affect personal finances and business transactions.

He emphasised the importance of distinguishing between taxable business receipts and other funds, such as documented loans, when determining a taxpayer’s obligations.

The clarification comes amid heightened public interest in Nigeria’s tax reforms and questions about their implications for individuals, traders and small businesses.