Senator Magnus Abe, who represented Rivers South-East, has said the recent surge in global oil prices presents both challenges and opportunities for Nigeria, noting that the country stands to increase its earnings if it strategically leverages the situation.
 
But renowned economist and the Group Managing Director and Chief Executive Officer of Bristol Investment Limited, Dr Chijioke Ekechukwu, has said the country was missing out on significant economic gains from the current rise in global crude oil prices due to its low crude oil production levels.
 
Abe spoke yesterday with journalists after appearing before the Senate Committee on Petroleum Resources (Upstream) for screening as Chairman of the Board of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
 
He explained that the rise in oil prices, linked to tensions involving Iran and the United States (U.S.), should encourage Nigeria to strengthen its energy sector, particularly in gas development and marginal oil field investments.
 
According to him, although the global crisis may lead to higher fuel prices and economic pressure, it could also translate into increased national revenue from oil sales.
  
“This is a very difficult time for the entire world. It is not just a Nigerian challenge; it is a global challenge,” Abe said. “You must look at the balancing act. Prices will definitely be affected, but revenues from our oil sales will also improve. There will be some measure of balance in what will happen.”
 
The two-term senator and former board member of the Nigerian National Petroleum Company Limited (NNPCL) was asked to “take a bow and go” during the screening in line with the Senate’s tradition for former lawmakers appearing for confirmation.
 
The committee, chaired by Eteng Williams, screened nominees forwarded by President Bola Tinubu for appointment as chairman and non-executive commissioners of the commission.

Ekechukwu, while reacting to the ongoing crisis in the Middle East, said Nigeria could have recorded a major economic windfall if its crude oil production had been operating at full capacity. He explained that the country would have enjoyed greater financial benefits if production had reached its installed capacity or the quota allocated to it by the Organisation of the Petroleum Exporting Countries (OPEC).
  
“Nigeria is producing far below its potential as an oil-producing nation, thereby limiting the benefits it can derive from the ongoing rise in global crude oil prices triggered by tensions involving the U.S. and Iran,” he said.
 
Data from OPEC shows that although the organisation retained Nigeria’s crude oil production quota at 1.5 million barrels per day (mbpd), the country’s output dropped to 1.31 million barrels per day in February.
 
Ekechukwu noted that with crude oil prices trading far above Nigeria’s 2026 budget benchmark of $64.9 per barrel, the country could have significantly improved its fiscal position if production levels were optimal.
 
“With crude oil prices now above the budget benchmark, Nigeria’s fiscal deficit for the year could have been largely reduced if the country were producing at full capacity,” he said.
 
However, the economist warned that while the government might benefit from higher crude oil revenues, ordinary Nigerians were already feeling the impact of rising energy costs.
 
“The rising cost of energy is already pushing up the prices of goods and services, thereby worsening the cost-of-living pressures on citizens. Nigerians are already dealing with high petrol and diesel prices, rising transportation costs and increased production expenses,” he said.