His comments come as conflict in Iran disrupts shipments through the Strait of Hormuz, an important corridor carrying about a fifth of global oil trade, pushing prices higher and forcing exporters to halt shipments.

“Nigeria’s untapped reserves offer Gulf states an alternative source of crude and gas at a time when global flows are vulnerable,” Tuggar said. “Countries that might otherwise consider us competitors should partner with us and invest, diversifying market share and benefiting both sides.”

Nigeria’s Oil and Gas Output

Nigeria has raised total crude output to roughly 1.7 million barrels per day (bpd) from 1.4 million bpd when President Bola Tinubu took office in 2023, with the potential for further growth as new investments target fields and pipelines.

Some analysts say U.S. and Israeli strikes on Iran, and Tehran’s subsequent attacks on Gulf states, might make Gulf countries hesitant to invest in Africa. Tuggar, however, argues these issues could encourage partnerships.

“It could make them want to work with countries like Nigeria, rich in gas and oil, to diversify market share for mutual benefit, or they could hold back.”

Nigeria has already taken steps toward stronger cooperation, having signed a Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates in January. This was designed to bring about trade and investment.

Qatar-linked investors have also announced plans to invest in Nigeria’s gas sector, though timelines are still not known.

Strategic Context: Strait of Hormuz Disruption

• February 2026 Strait crisis: Following U.S. and Israeli strikes on Iran, shipping through the Strait was disrupted, damaging tankers and killing seafarers.
• Global impact: With the Strait carrying 20–25% of global seaborne oil trade, disruptions drove Brent crude above $90 per barrel, increased freight costs, and raised insurance premiums.
• Opportunity for Nigeria: Gulf producers seeking alternatives create openings for Africa’s largest oil and gas producer.

Domestic Refining and Gas Potential

Nigeria is also expanding resilience at home, with privately owned Dangote Refinery, having a capacity of 650,000 bpd, reached full operational output in February 2026, enough to meet domestic demand and reduce reliance on imported refined products.

The country holds 206 trillion cubic feet of proven gas reserves, the largest in Africa, and is advancing its “Decade of Gas” initiative to monetise these resources. Tuggar emphasised that oil and gas will always be globally essential for years:

“The world consumes about 105–106 million barrels per day. That’s not changing anytime soon, so we need to work together to ensure enough hydrocarbons are available.”

Strategic Partnerships and Investment

• UAE – CEPA (Jan 2026): Eliminates tariffs on thousands of products and opens over 100 service sectors, potentially bringing billions in trade and green finance.
• Qatar – LNG investment (Jan 2026): Future Union Qatar signed a $3 billion MOU to invest in Nigeria’s LNG projects, supporting export capacity and gas monetisation goals.

Nonetheless, the challenges cannot be ignored, with warnings that Nigeria’s energy investment sector needs to overcome the following:

• Execution delays: Long approval cycles can slow delivery on investment promises.
• Security risks: Oil theft and pipeline vandalism are among top issues.
• Global competition: Gulf states may hesitate to pivot to African suppliers if Middle East tensions ease, though Nigeria positions crises as a reminder of diversification needs.

Chinese President Xi Jinping disclosed the development in a formal letter to African foreign ministers. According to him, all 53 African countries with diplomatic relations with Beijing will now enjoy “zero-tariff treatment for 100% of tariff lines.” 

This is a massive expansion of an earlier policy that only applied to the continent’s least developed nations.

For African exporters, especially those in agriculture, mining, and light manufacturing, this is an open door to the world’s second-largest economy.

China is now revealing that it’s ready to be a long-term, low-barrier trading partner for Africa, at a time when others are retreating or imposing tougher terms.

Trade data from China’s Foreign Ministry already shows that Chinese exports to Africa jumped by 12.4% in the first five months of the year, climbing to 963 billion yuan (roughly $134 billion).

With the new tariff offer, this volume could rise even further, and more importantly, African exports to China might finally gain ground.

The United States’ African Growth and Opportunity Act (AGOA), which provides eligible African countries with duty-free access to the U.S. market, is set to expire in 2025. Over 30 African nations risk losing that benefit. 

Add to that the unpredictability of U.S. policy, especially under past administrations, and China’s offer begins to look less like generosity and more like a geopolitical counterpunch.

Beijing says, “We can offer what others won’t. And we’ll do it with less friction.”

However, the policy has its boundaries. Eswatini is excluded, its continued recognition of Taiwan disqualifies it from this round of economic generosity. This detail reinforces China’s hardline stance on Taiwan and notes that while the offer is wide-reaching, it’s not unconditional.

On the sidelines of a recent ministerial meeting in Changsha, Nigeria’s Minister of Foreign Affairs, Yusuf Tuggar, called on Beijing to include Nigeria in this tariff-free scheme. 

He emphasised that the plan fits well into the China-Africa partnership to “jointly advance modernisation,” and also pressed for African inclusion in emerging sectors like artificial intelligence and satellite technologies.

Tuggar said, “We urge that Nigeria be included in the zero-tariff treatment. Our agricultural produce and mineral exports have great potential that can thrive in the Chinese market.”

African nations are no longer passive recipients of global trade policies, they are repositioning themselves. But there are risks. China’s track record in Africa, especially in infrastructure lending, has raised concerns over debt traps and sovereignty erosion. 

Now, with this trade opening, leaders on the continent must weigh the benefits against the long-term implications of economic overdependence on a single partner.

That said, China’s timing is impeccable. With global trade undergoing massive changes, and the West’s engagement with Africa marred by inconsistency, Beijing’s latest move could very well deepen its footprint across the continent, this time not with roads and railways, but with customs forms stamped zero percent.

The decision wasn’t just a ceremonial gesture; it was business. Sweden is looking to Nigeria—not just as Africa’s largest economy, but as a place to build. Build tech. Build trade. Build trust.

The Swedish Crown Princess, Victoria, currently on a three-day state visit, sat down with Nigeria’s Vice President, Kashim Shettima, at the Presidential Villa in Abuja. Discussions went from tech to trade, from culture to climate. And both countries are ready to push this relationship forward.

Vice President Shettima said: “Nigeria will continue to be a dependable ally of Sweden in all seasons.” He spoke of a partnership “anchored in innovation, powered by people, and guided by our shared determination to uplift communities and secure prosperity for generations to come.”

Sweden’s Minister for Infrastructure and Housing, Andreas Carlson, spoke about what’s driving the move: opportunity. “We have opened five innovation hubs in Africa, with the largest one in Nigeria, in Lagos. So, I see a lot of opportunities in other sectors as well, such as health, agriculture, and more.”

And with that came confirmation—Sweden’s physical trade office in Nigeria is set to officially open on Tuesday. After 65 years of bilateral relations, Sweden is betting big, and betting long-term, on Nigeria.

Princess Victoria added weight to the moment, saying, “It’s wonderful to see the opportunities that are here. I think this is especially important in the times we live in right now.”

She’s not wrong. Nigeria is trying to shift its economic gears, and Sweden is offering a toolkit—through tech, investment, and knowledge exchange.

There was also a focus on commitments already made. One of them is a Memorandum of Understanding (MoU) signed between Nigeria and Swedish tech giant Ericsson. Shettima made it clear—Nigeria is ready to get the wheels turning. “We are a large nation with a tech-savvy population. Many of Africa’s tech unicorns are Nigerian-based. The future is Nigeria.”

Ericsson’s team, led by Patrick Johansson, Senior Vice President and Head of Market Area Europe, Middle East and Africa, came calling at the Villa too. They’ve been here before, helping Nigeria build its digital backbone long before most international companies saw potential in the country’s tech scene.

“She has remained a faithful partner in progress and a collaborator in our transformation journey,” Shettima said, referring to the company’s consistent presence in Nigeria.

It didn’t end there.

Majda Lahlou Kassi, another Ericsson executive, emphasised why Nigeria continues to be a priority. “Ericsson believes in Nigeria’s potential and is proud of the existing relationship, especially the possibilities for growth in the local market and entrenchment of a digital culture among the citizenry.”

There was also conversation around education and social development. The VP praised SchoolTry, a Swedish edtech company working to improve education outcomes in Nigeria. It’s another proof point that Sweden isn’t coming in for extractive purposes—they’re bringing tools, tech, and teaching.

Minister of Foreign Affairs, Yusuf Tuggar, used the moment to highlight even more: green energy, agriculture, skilled employment, and ICT outsourcing. According to him, Nigeria is already holding talks with countries like Sweden to ensure skilled workers can access structured opportunities abroad. “This will reduce irregular migration,” he said.

So, yes—it was a packed Monday. But this wasn’t diplomacy as usual.

This was Sweden looking at Nigeria not just as a partner, but as a huge force in Africa’s sustainable development. And it was Nigeria, in return, revealing that it’s not just open for business, but ready to lead from the front.