According to The Guardian, Nigeria and other African nations may face a severe disruption in fuel supplies as global maritime insurance providers withdraw “war-risk” coverage for vessels in the Persian Gulf. This move follows escalating conflicts involving Iran and U.S. efforts to stabilize shipping routes through the Strait of Hormuz, where 20% of the world’s oil flows.
With Lloyd’s of London signaling a significant hike in premiums, the cost of importing refined petroleum into Nigeria is expected to skyrocket. President Donald Trump has reportedly directed the U.S. International Development Finance Corporation to provide alternative insurance guarantees to keep energy cargoes moving.
The Sun Nigeria validated the report, quoting a maritime expert who said, “Nigerian pump prices are directly tied to these global freight costs.”
ThisDay also highlighted the risk, with a refinery consultant noting, “This crisis makes the full operationalization of the Dangote and Port Harcourt refineries a matter of national security.”
Echotitbits take:
This is a classic “external shock” scenario. Even with local refining capacity increasing, Nigeria’s reliance on global shipping means any hike in insurance premiums will likely lead to another round of petrol price adjustments at the pumps.
Source: The Guardian – https://guardian.ng/news/meast-war-lifts-crude-pushes-petrol-near-n1000-as-nigeria-counts-gains-risks/, March 5, 2026
Photo credit: The Guardian
