Nigeria is poised for increased oil revenue as Japan seeks alternative crude oil sources, including supplies from Nigeria, amid ongoing disruptions in the Middle East that have unsettled global energy markets.
The move comes as Japan intensifies efforts to secure stable domestic energy supply following tensions in the region, particularly the conflict involving Iran, which has affected critical oil transit routes.
According to Narumi Hosokawa, a senior official at Japan’s Ministry of Economy, Trade and Industry (METI), the country is engaging multiple oil-producing nations to diversify its imports.
In addition to Nigeria, Japan is also sourcing crude from Malaysia, Azerbaijan, Brazil, and Angola.
Japan’s Prime Minister, Sanae Takaichi, disclosed during a cabinet meeting that the country plans to release up to 20 days’ worth of oil reserves beginning in May as part of emergency measures to cushion supply shocks.
The country is also working to reduce reliance on traditional Middle Eastern routes, with plans to secure more than half of its oil imports through alternative channels that bypass the Strait of Hormuz, a key shipping corridor currently affected by geopolitical tensions.
Japan, which depends on the Middle East for about 95 per cent of its crude oil supply, has been particularly vulnerable to the ongoing disruptions.
The situation has been compounded by a near-blockade of the Strait of Hormuz, described as one of the most severe interruptions to global energy supply in recent history.
As part of its broader response, Japan has already begun releasing oil reserves since March 16, both independently and in coordination with other countries, with the aim of making enough supply available to cover up to 50 days.
The additional 20-day release would come from public stockpiles.
Despite a temporary two-week ceasefire agreement between the United States and Iran, uncertainty persists, with no clear indication that Tehran would fully reopen the Strait of Hormuz to normal shipping activities.
Meanwhile, Japan is also ramping up imports from the United States, its closest ally, with supply volumes expected to quadruple in May compared to the same period last year.
As of April 7, Japan reportedly had oil reserves sufficient to last 228 days, including 143 days held in public stockpiles.
Analysts said the country’s aggressive diversification strategy could create new opportunities for oil-exporting nations like Nigeria to expand market share and boost foreign exchange earnings.
The development is expected to provide a welcome boost to Nigeria’s economy, which remains heavily reliant on crude oil exports for revenue generation.
