The ongoing conflict involving the United States, Iran, and Israel is putting immense pressure on global oil markets, and Nigeria is at risk of facing a double impact, according to Oluseun Onigbinde, the CEO and Co-Founder of Budgit. Speaking on TVC News’ “Business Nigeria” program, Onigbinde described the situation as unexpected but not entirely surprising given the simmering tensions in the region.
He pointed out that recent military strikes in Iran, a crucial country for oil production, logistics, and transportation, have disrupted markets. “As of now, Brent’s price is around $110 per barrel, and obviously we have also seen it shoot up to maybe $120 at some periods,” he said.
Onigbinde emphasized that attacks on oil and gas facilities by both Iran and Israel have contributed to market uncertainty, leading to international efforts to mitigate the conflict and reduce inflationary pressures on domestic economies.
He cautioned that while increasing oil prices could boost Nigeria’s budget revenue and support government development projects, the benefits come at a cost to citizens. Referring to the country’s deregulated fuel pricing system, he said, “It’s like someone takes a lot of straws from the mouth of Nigerians and brings a big pipe into the mouth of the government. It’s a huge problem.”
Onigbinde stressed the importance of transparency in utilizing additional government revenue and called for social protections to shield ordinary Nigerians from the consequences. “We cannot continue to believe that we’ll just subject everyday Nigerians to the wider challenges of the market,” he said.
