Jimmy Ajim
The Strait of Hormuz is a critical maritime chokepoint in the Middle East located between Iran and Oman, and it is contiguous to the United Arab Emirates (UAE). In other words, the strait is between the Persian Gulf and the Gulf of Oman.
Its significance lies in the fact that about 20% of the global oil consumption passes through this strait, thereby making it one of the most critical energy routes worldwide.
The Strait of Hormuz was reportedly closed by Iran’s Islamic Revolutionary Guard Corps on February 28th, 2026, in the aftermath of the strikes on Iran by the combined forces of Israel and the USA.
The Guard Corps announced that no ships would be cleared to pass through the strait. Vessels have already received Very High Frequency (VHF) messages to that effect.
Nevertheless, the closure was not officially confirmed by Iran but the measure has been effective owing to safety concerns.
This closure has severe implications for global oil and gas supplies, as the Strait of Hormuz handles about 20% of the world’s oil and Liquefied Natural Gas (LNG)shipments. The situation has exercebated, snowballing into the current rise in oil prices, and dislocations in shipping, globally.
Presently, the closure has pushed oil prices to over $120 barrel, thereby threatening food and fertiliser supplies, and disrupting fragile states, such as Pakistan.
*HOW HAS THE CLOSURE OF THE STRAIT OF HORMUZ AFFECTED NIGERIA’S OIL SUPPLIES ?*
The closure of the Strait of Hormuz has had significant impact on Nigeria, with both positive and negative effects.
On the positive side, Nigeria is benefitting from the higher oil prices, which have surged due to the disruption in the global oil supplies. This fertile position is expected to boost Government revenue and foreign exchange earnings, especially as Nigeria’s oil production has been on the increase and is exceeding its OPEC quota.
Conversely, Nigeria’s economy is sensitive to oil price volatility, making her vulnerable to disruptions. The closure of the Strait of Hormuz is also having its negative effects on Nigeria, because as a net importer of Petroleum products, the country is grappling with higher import costs, which are pushing up fuel prices and contributing to cruel inflation.
Though the Nigerian Government appears to be under pressure to cushion the impact of the spiralling oil prices on consumers, President Bola Ahmed Tinubu, through the NNPC, is doing his utmost with Aliko Dangote, to supply adequate crude to the Dangote Refinery to meet local demand, and to stem apparent calls for the return of fuel subsidy.
_Dr. Jimmy Ajim
DG/AMBP-UN_
