The Geopolitical Dynamics of Oil and Gas: Nigeria’s Strategic Role, Emerging Challenges, Economic Policies and Opportunities

Abstract

The global oil and gas sector remains one of the most geopolitically influential industries, shaping international relations, trade flows, economic stability, and strategic alliances across regions. For resource-rich nations, control over hydrocarbons significantly determines their bargaining power, energy security posture, and diplomatic relevance in global affairs. As the world undergoes rapid shifts driven by energy transition and climate policies, understanding the geopolitical positioning of major producers has become increasingly important for policymaking and long-term economic planning. This research examines Nigeria’s geopolitical standing within the global oil and gas market, exploring how its vast hydrocarbon reserves and strategic geographic location shape its influence in the sector. Nigeria, Africa's largest oil producer, makes a significant contribution to global energy markets through its crude oil and LNG exports, primarily to Europe and Asia. However, infrastructure deficits and security concerns hamper its full market potential. Similarly, the global energy transition, characterized by reduced dependence on fossil fuels and increased adoption of renewable energy, poses additional risks to Nigeria’s oil-dependent economy. Despite these challenges, opportunities exist for Nigeria to reposition itself as a leader in natural gas exports and renewable energy investment. Leveraging strategic partnerships and participating in regional trade agreements can further enhance Nigeria’s influence. This study highlights the necessity for reforms in governance, diversification, and the alignment of energy policy to ensure Nigeria's continued relevance in the evolving energy landscape.

Keywords: Nigeria’s oil and gas industry, geopolitics of energy, natural gas exports, global energy transition, OPEC, energy investments, energy policy reform, economic diversification, regional energy cooperation, energy security

DOI: 10.7176/JETP/15-1-09

Publication date: November 28th 2025