By Arogundade Oluwasegun

The turmoil rippling through global energy markets following disruptions in the Strait of Hormuz has once again revealed an uncomfortable truth: the international energy system remains dangerously exposed. As prices soar and supply chains strain under geopolitical pressure, it is the world’s most vulnerable economies that stand to lose the most. Without a coordinated push to finance and govern strategic energy reserves, developing countries could soon find themselves locked into a two‑tier resilience system—one in which wealthy nations shield themselves from volatility while poorer states absorb the shocks.

Brent crude prices climbing above $100 per barrel, coupled with clogged shipping routes and competition for diminishing oil and LNG cargoes, have turned a foreseeable risk into a full‑blown stress test. In response, affluent countries have rapidly expanded their strategic stockpiles in an effort to cushion domestic markets. Their actions may be rational from a national security standpoint, but collectively they tighten supply, inflate global prices, and deepen inequality in energy security.

Nigeria provides a stark illustration. Despite abundant hydrocarbons, the country lacks functional above‑ground strategic reserves and remains dependent on fragile supply chains to keep refineries running and domestic fuel available. A short‑term disruption risks cascading into refinery shutdowns, fuel scarcity, and social strain—outcomes that could be avoided with the right infrastructure and governance in place.

To break this cycle, the international community must act decisively. A practical first step is the establishment of a Pooled Reserve Finance Facility—a multilateral platform offering concessional loans, guarantees, and technical support to help at‑risk nations build and maintain storage, logistics, and emergency-response systems. Such a facility would allow vulnerable countries to access long‑term infrastructure finance without destabilizing public budgets already burdened by debt and poverty pressures.

Equally vital is the creation of a West African regional reserve pilot, designed to trial pooled procurement, shared governance frameworks, and transparent drawdown protocols. Regional pilots offer a lower-cost, faster-to-implement pathway to resilience and serve as a real-world demonstration of cooperative crisis management.

But financing is only part of the equation. Any reserve initiative must be grounded in transparent governance—ring‑fenced reserve funds, regular public audits, anti-corruption systems, and clear oversight mechanisms. Without these safeguards, reserves risk becoming politicized or mismanaged, ultimately eroding public trust.

Demand-side strategies must complement stockpiling as well. Targeted social protection, especially when paired with carefully sequenced subsidy reforms, ensures that vulnerable households are shielded from price spikes while governments redirect fiscal savings toward resilience-building measures. Likewise, investment in renewables, energy efficiency, and fuel-switching innovations can diversify supply sources and reduce dependence on volatile fossil fuel markets.

The goal is not merely to survive the current crisis but to build a system where developing economies are not perpetually left exposed. As one senior energy policy adviser cautioned, “A two-tier resilience system threatens to make the poorest countries pay for shocks they did not cause. Targeted multilateral finance, transparent governance, and regional cooperation can break the cycle—protecting both markets and people.”

The time for action is now. Policymakers, multilateral institutions, and private-sector partners should convene within the next 90 days to design the pooled finance facility, and move swiftly toward launching the West African pilot within 12 months. Every delay increases both the humanitarian and economic costs of future disruptions.

This op-ed calls for strategic, cooperative, and equitable action—because global energy security is only as strong as its most vulnerable link.