The Nigerian National Petroleum Company Limited has increased the official selling prices of all 37 Nigerian crude grades for May-loading cargoes, capitalising on the surge in global oil prices triggered by escalating tensions between the United States and Iran.
According to a report by Oilprice.com, the national oil company raised the price of its flagship grade, Bonny Light, by $6.13 per barrel compared to April. Similarly, Forcados crude saw a sharper increase of $7.01 per barrel, reflecting strong global demand and supply concerns tied to geopolitical instability.
Bonny Light climbed to $124.86 per barrel on Tuesday, trading about $14 above the global benchmark, Brent crude, which itself surged past $110 per barrel. The rally follows fears that the conflict could escalate into a prolonged crisis, especially after failed diplomatic talks in Islamabad and comments from Donald Trump expressing dissatisfaction with Iran’s ceasefire posture.
Market uncertainty was further heightened by the unexpected exit of the United Arab Emirates from OPEC, raising concerns about potential shifts in Middle Eastern energy alliances and production strategies.
Data from the Central Bank of Nigeria showed that Bonny Light had traded at around $74 per barrel before tensions intensified in late February, underscoring the scale of the recent price surge. Analysts note that unless the Strait of Hormuz is reopened fully for oil shipments, upward pressure on prices may persist.
While the development boosts Nigeria’s foreign exchange earnings, it could have significant domestic consequences. The higher crude prices may increase feedstock costs for the Dangote Petroleum Refinery, potentially leading to higher petrol prices for consumers.
Energy experts warn that the situation presents a mixed outcome for Africa’s largest oil producer. Adeola Adenikinju, a former president of the Nigerian Association for Energy Economics, described the development as a “two-edged sword.”
According to him, while government revenues may rise, the knock-on effect of increased fuel prices could worsen inflation and raise transportation costs, disproportionately affecting low-income households.
Adenikinju called for targeted cash transfers to cushion the impact on vulnerable Nigerians but noted that the lack of a comprehensive social database remains a major obstacle.
He added that recent wage adjustments for civil servants offer only limited relief, as a large portion of the population operates within the informal sector. He urged coordinated action between federal and state governments to design broader support systems.
