Reports that Iran has shut the strategic Strait of Hormuz, a strategic international shipping route again has sparked fresh concerns over global oil prices.

This latest shutdown comes barely 24 hours after it was reopened on the heels of a ceasefire arrangement with the United States.

According to a New York Post report which quoted the Islamic Revolutionary Guard Corps (IRGC), Iran cited a continued presence of United States forces in the region and Israel’s refusal to pull military forces out of southern Lebanon, where it had been pounding Hezbollah terrorists.

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The IRGC said the US violated the memorandum of understanding between Washington and Tehran, which President Donald Trump and Iranian President Masoud Pezeshkian signed last Wednesday.

The latest development has revived fears of disruptions to global crude oil supplies and a fresh rally in international oil prices, a scenario that could shake Nigeria’s downstream petroleum market.

The Strait of Hormuz remains one of the world’s most critical energy corridors, serving as the transit route for nearly a fifth of global oil consumption.

Any disruption along the waterway typically triggers nervous reactions in oil markets and raises concerns over energy security.

Industry observers warned that a prolonged closure could push crude oil prices higher, increase the cost of imported petroleum products and ultimately force a fresh upward adjustment in petrol prices across Nigeria.

For many Nigerians already grappling with high transportation and living costs, another spike in fuel prices would deepen existing economic pressures.

Osun State Governor, Senator Ademola Adeleke has expressed the state government’s desire to tap into the National Halal Economic Strategy (NHES) of the Federal Government.

According to a government house statement in Osogbo over the weekend, it would do so by creating a state’s policy and implementation plan within the federal strategy.

Gov Adeleke made the assertions, at the National Economic Council (NEC) meeting in Abuja on Thursday, where he commended the federal initiative on Halal economy, calling it “a timely step to tap into the multi trillion dollar Halal economy that is already integrated into western and global economy”.

The governor who called for a subnational template for halal implementation assures that his administration will set up an halal economy committee to adapt the federal template and create a state programme for implementation.

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He said the Halal economy has the potential to expand and deepen the Osun economy as its applications cuts across all economic sectors and is also open to multi-faith beneficiaries.

“I commend President Bola Tinubu for this initiative. Osun will work on an implementation plan to benefit all residents and indigenes. Halal economy covers financing, dietary requirements, infrastructure and ethical conduct in business relations”, the governor noted.

It would be recalled that Vice President, Kashim Shetimma had unveiled the national halal economic strategy, informing that the Strategy is “the result of careful study and sober reflection inspired by the commitment of the administration of President Bola Ahmed Tinubu “to diversify exports, attract foreign direct investment, and create sustainable jobs across the federation.

“It is also the product of deliberate partnership, developed with the Halal Products Development Company, a subsidiary of the Saudi Public Investment Fund, alongside Dar Al Halal Group Nigeria, with technical backing from institutions such as the Islamic Development Bank and the Arab Bank for Economic Development in Africa,” he added.

Nigeria’s petrol imports rose sharply in May 2026, increasing by 59.5 percent month-on-month despite stronger production from domestic refineries led by the Dangote Petroleum Refinery and Petrochemicals (DPRP).

Latest data released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that average daily imports of Premium Motor Spirit (PMS), popularly known as petrol, climbed to 5.9 million litres per day in May from 3.7 million litres per day recorded in April.

The increase indicates that oil marketers continued to rely on imported products to complement local supplies, even as domestic refineries accounted for the overwhelming share of fuel distributed across the country.

According to the NMDPRA’s Midstream and Downstream Petroleum Statistics, Nigeria’s total petrol supply increased to 47.4 million litres per day in May, compared with 44.4 million litres per day in April, representing a 6.8 percent rise.

Domestic refineries supplied 41.5 million litres per day during the month, while imported products accounted for 5.9 million litres per day. This means that locally refined products contributed nearly 88 percent of total petrol supply nationwide, underscoring the growing importance of domestic refining in meeting the country’s energy needs.

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The latest figures highlight the continuing transition of Nigeria’s downstream petroleum sector from heavy dependence on imported fuel to increased reliance on local refining capacity.

However, despite the rise in petrol availability, crude oil deliveries to local refineries declined during the review period.
Refiners received an average of 578,000 barrels of crude oil per day in May, down from 612,000 barrels per day in April, representing a decrease of 5.6 percent.

Industry observers say the development suggests that while local refining capacity continues to expand, refiners may still be facing operational and feedstock challenges that require supplementary imports to bridge supply gaps and maintain market stability.

Private refineries remained the major drivers of domestic fuel production during the month.

The DPRP retained its dominant position in the market, supplying 41.5 million litres of petrol daily in May, up from 40.7 million litres per day in April. The refinery recorded an average capacity utilisation rate of 101.25 percent and reportedly operated at full capacity on most production days during the month.

Other private refineries posted varying levels of operational performance.

WalterSmith Refinery achieved a capacity utilisation rate of 65.31 percent, while Edo Refinery and Petrochemicals recorded 91.66 percent utilisation. Aradel Refinery operated at 62.94 percent capacity utilisation during the period.

In contrast, the Nigerian National Petroleum Company Limited (NNPC Ltd) owned Warri and Kaduna refineries remained inactive, recording no production despite ongoing rehabilitation and revamp efforts.

The continued inactivity of the state-owned refineries further highlights the growing role of private-sector investment in Nigeria’s refining industry and the increasing contribution of privately owned facilities to national fuel security.

A review of the NMDPRA supply data for the first five months of 2026 shows a broad decline in petrol imports as local refining capacity strengthened, although monthly fluctuations persisted.

In January, petrol imports averaged 24.8 million litres per day, while domestic refineries supplied 40.1 million litres daily. Imports fell dramatically to 3 million litres per day in February, although local refinery output also declined to 29.4 million litres per day during the same period.

By March, imports rebounded to 5.9 million litres per day, while domestic production improved significantly to 34.2 million litres per day. The upward trend continued in April when local refinery output rose to 40.7 million litres per day and imports eased to 3.7 million litres per day.

In May, domestic supply increased further to 41.5 million litres per day, while imports returned to 5.9 million litres per day.

Despite the latest jump, petrol imports remain substantially below January levels, pointing to a structural shift in Nigeria’s fuel supply chain following the expansion of local refining operations.

The data comes as Nigeria’s crude oil production also showed signs of improvement. Recent industry figures indicate that average daily crude oil output rose to 1.53 million barrels per day in May from 1.489 million barrels per day in April, an increase of 41,000 barrels per day.

The increase marked Nigeria’s first return above its production quota under the Organisation of Petroleum Exporting Countries (OPEC) since mid-2025, providing additional support for the country’s efforts to strengthen domestic refining and reduce dependence on imported petroleum products.