Nigeria Faces Lubricant Supply Squeeze Amid Global Tightening

Nigeria is experiencing a lubricant supply squeeze as global base oil supply tightens and prices rise. According to a report by global energy commodities intelligence firm, West Africa has averaged annual imports of 135,752 tons of base oil over the past five years.

The situation is exacerbated by ongoing disruptions linked to the U.S.-Iran conflict, which has reduced availability in the West African market despite a recent peace deal announcement. The last major shipment of base oil arrived in March, and replenishing cargo is unlikely to be available from exporting countries throughout the summer.

Gabriella Twin indicated that the region's dependence on imports is critical, especially as European and U.S. supplies are limited due to maintenance shutdowns and domestic demand. Nigerian buyers are shifting to alternative grades of products, but Asian sellers prioritize higher prices, complicating the procurement process.

The local market is expected to face increased ex-tank prices as demand rises, particularly during the rainy season when logistics are typically slow.