General News
What the Recent Oil Disruption Means for Nigeria
By Lukman Otunuga, senior,Research Analyst,FXTM
The unprecedented Oil disruption in Saudi Arabia in September shocked the markets and triggered multiple financial reactions for investors across the globe.
Oil prices exploded 20 percent higher on Monday September 16 after attacks on Saudi Oil fields caused disruptions of 5.7 million barrels per day, roughly five percent of global Oil supplies. Oil later gave back gains after Saudi Arabia pledged that Oil production would be up and running by the end of September.
However, there are doubts that the damage – which is thought to run into the hundreds of millions of Dollars – will be fixed so quickly.
Dynamic influencing Oil market swing back and forth
The uncertainty is also disrupting Oil prices, which spike intermittently before calming on data like the US Energy Information Administration’s (EIA) report about a 2.4 million barrel build in Crude oil inventories on September 25.
On top of that, geopolitical tensions in the Middle East add more concerns for the short-term future of Oil markets.
Going forward, Oil prices are expected to be more sensitive to negative supply shocks, at least in the short term. If the serious tensions between Iran and the US escalate, Oil prices may be supported with a degree of upside potential.
OPEC continues with its quest to stabilize markets
Another factor to consider is OPEC’s reaction and possible change of mind over its supply cut policy. As recently as September 12, OPEC persuaded Nigeria to join supply cuts to prevent a global glut from drastically undercutting prices and Oil revenues for Oil-producing countries. The supply-side circumstances have changed considerably since then.
Recent reports have revealed that OPEC’s oil output fell to an eight-year low in September, pumping 28.9 million barrels per day (bpd) which was down 750,000 bpd from August’s revised figure and lowest monthly total since 2011.
Should Saudi Arabia experience more attacks or take longer than expected to restore normal Oil production from the damaged facilities, OPEC may need to reconsider supply cuts and increase production so its members can meet global supply demand.
At the time of writing, Nigeria’s Light Sweet Crude Oil Kwa Ibo and Bonny Light are trading at their normal level of $3 above the Brent Crude benchmark because Saudi Arabia has pledged to be back to normal light Crude oil production levels by the end of September. In the meantime, Saudi Arabia has restored output to 11.3 million barrels per day but is relying on sales of heavy Crude oil. Should Saudi Arabia disappoint the market’s expectations, light sweet Crude oil prices may change in Nigeria’s favour.
Overall, given how Oil sales account for roughly 70 percent of government revenues and 90 percent of Nigeria’s foreign exchange earnings, if the recent disruption results in a net rise in Oil prices, it could offer short-term support to the nation.
Impact on Nigeria’s economic growth
As an emerging market energy exporter, the prospects of rising Oil prices should feed back into Nigeria’s economic growth. Higher Oil prices would boost the nation’s foreign exchange reserves, promote foreign exchange stability and boost government spending in economic infrastructure which in turn would be positive for growth.
On the other hand, Nigeria’s fiscal and monetary policy makers must always be on the lookout for inflationary pressures. In August, inflation in Nigeria fell to 11.02 percent, a 43-month low. But higher Oil prices may squeeze company and consumer transportation budgets, re-igniting inflation.
Higher Oil price could hit consumer spending
The flip side of higher Oil prices is the risk of rising inflation. This would likely drag on consumer spending and complicate central bank efforts to ease monetary policy, which may end up pressuring economic growth.
On a larger scale, the threat of a global recession lurks around the corner. Rising Oil prices could also threaten global growth with higher running costs.
While Nigeria and energy producers would welcome higher Oil prices, everyone will lose if unaffordable costs tip the global economy into recession.
Diversification remains the cure to Nigeria’s oil dependence
In September, the Central Bank of Nigeria (CBN) left interest rates unchanged at 13.5 percent. Movements in the Oil markets have a direct impact on CBN’s rate decisions, so I am closely watching developments in this area. Especially when considering how the CBN Governor wants inflation to slow to 9% or less before he considers cutting interest rates further.
Long term, for Nigeria to reduce exposure to Oil volatility, the quest for diversification needs to build momentum. Nigeria could source growth from non-Oil sectors like Agriculture and Services.
In conclusion, until diversification reduces Nigeria’s dependence on Oil revenues, the economy remains vulnerable to Oil price volatility and an uneven demand-supply equation.
NigComSat-1R, a Nigerian geostationary communications satellite will outlive its usefulness this year, meaning that the satellite will expire anytime now.
NigComSat-1R was launched by China Great Wall Industry Corporation (CGWIC) for Nigeria on December 19, 2011, as a replacement for the failed NigComSat-1.
NigComSat-1 which was put in the orbit in May 2007, was de-orbited in November 2008 following the development of power fault.
It was replaced with NigComSat-1R by the same company and has a lifespan of 15 years.
Positioned at 42.5°E, it provides C, Ku, Ka, and L-band services across Africa, Europe, and parts of Asia for broadcasting and internet.
Should the satellite fail, support for television broadcasting, internet connectivity, and secure communications for government and private sectors, may be affected.
The satellite is currently been controlled from China since 2019 following technical issues with the Abuja control station.
NigComSat-1R is currently the only active communications satellite managed by NIGCOMSAT Limited, though it operates alongside other Nigerian observation satellites.
Federal government has declared Thursday, March 19, and Friday, March 20, as public holidays to mark this year’s Eid-ul-Fitr celebration.
Consequently, banks, schools and offices nationwide will be shut for the two days.
The declaration was made by Olubunmi Tunji-Ojo, minister of Interior, on behalf of the government, according to a statement issued on Tuesday, by Magdalene Ajani, permanent secretary of the ministry.
Eid-el-Fitr, meaning ‘festival of breaking the fast,’ is one of the most important feasts in Islam.
The festival marks the end of Ramadan, a sacred month of fasting, prayer, and spiritual reflection observed by Muslims worldwide.
During Ramadan, Muslims fast from dawn to sunset, abstaining from food, drink, and other physical needs as an act of devotion to Allah.
Eid-el-Fitr is a time of joy and gratitude, beginning with a special congregational prayer at mosques and open prayer grounds.
It is also marked by feasting, gift-giving, and charitable acts, particularly the giving of Zakat al-Fitr, a mandatory charity given to the less privileged before the Eid prayer.
Congratulating Muslim faithful on the successful completion of Ramadan, Tunji-Ojo urged them to sustain the virtues of love, generosity, peace, tolerance, and sacrifice imbibed during the period.
He also called on Nigerians to use the festive season to pray for the peace, unity, and continued development of the country.
The minister further encouraged citizens to celebrate responsibly and extend acts of kindness to the less privileged, in line with the spirit of the season.
He reiterated the Federal Government’s commitment to promoting national unity and peaceful coexistence among all Nigerians.
National Information Technology Development Agency (NITDA) has launched a specialised training programme aimed at empowering Nigerian women with cybersecurity skills and increasing their participation in the country’s growing digital security workforce.
NITDA
The training, tagged “Cyber for Women”, was organised by NITDA in collaboration with Women in Cybersecurity and held on Tuesday, March 10, 2026 in Abuja.
Speaking at the event, NITDA’s Director of Cybersecurity, Mohammed Lawan Ahmed, represented by Ayodele Bakare, described the programme as a deliberate effort to position Nigerian women at the forefront of the country’s digital security ecosystem.
Ahmed said the initiative was designed not merely as a training session but as a strategic investment in Nigeria’s digital future and global cybersecurity resilience.
“Today’s programme is not just another training but a strategic investment in the future of Nigeria’s digital security landscape and the world at large, and this time women are intentionally positioned at the centre of the approach,” he said.
According to him, the programme underscores the growing role of women in the global digital revolution and highlights the need to equip them with the necessary skills to contribute meaningfully to cybersecurity.
“Today is a declaration that the women of Nigeria are not bystanders in the digital revolution; they are its architects,” he added.
Ahmed noted that cybersecurity has become a critical pillar for digital transformation in an increasingly technology-driven world.
He pointed out that while global demand for cybersecurity professionals continues to rise, women remain significantly underrepresented in the field.
To address this gap, he said the training aims to provide participants with knowledge, practical tools and collaboration opportunities necessary to thrive in the cybersecurity space.
“Our objective is clear: to empower Nigerian women in cybersecurity with knowledge, tools and collaboration opportunities,” he said.
He added that the participation of women in the training reflects their readiness to tackle emerging cyber threats and contribute to safeguarding Nigeria’s digital ecosystem.
“Your presence here today signifies commitment and readiness for the ever-evolving digital age and its evolving cybersecurity risks,” he said.
The Cyber for Women training forms part of NITDA’s broader efforts to build local capacity, promote digital inclusion and strengthen Nigeria’s cybersecurity workforce.
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