Economy

US Imports $1.34bn Nigerian Crude Oil in Five Months Despite Trump Tariffs

Published

5 months ago

July 21, 2025

Eric

The United States imported Nigerian crude oil worth $1.34 billion between January and May 2025, reinforcing Nigeria’s position as America’s top African crude supplier despite growing pressures on broader trade flows.

Data from the U.S. Census Bureau and Bureau of Economic Analysis showed that the U.S. purchased 17.39 million barrels of Nigerian crude in the five-month period, with oil exports continuing to dominate bilateral trade even as volumes declined from the same period last year.

This reflects a 12.7% year-on-year drop in volume and an 11.8% decline in value, highlighting changing dynamics in the U.S. oil market, including increased domestic output and shifting sourcing preferences.

Nigeria accounts for 62% of U.S. crude imports from Africa

Nevertheless, Nigerian crude still accounted for more than 62% of U.S. crude imports from Africa, far ahead of Libya, Angola, and Ghana, whose combined exports to the U.S. totaled $811 million during the same period.

In May 2025 alone, Nigeria exported 4.2 million barrels of crude to the U.S., valued at $311 million, down from $368 million in April. Customs and C.I.F. (Cost, Insurance, and Freight) data showed similar figures, with Nigeria’s oil exports to the U.S. recorded at $1.34 billion and $1.38 billion, respectively, reaffirming its role in transatlantic energy trade.

However, while crude shipments remained relatively stable, Nigeria’s overall export performance to the U.S. is weakening under the weight of America’s new trade policies.

Nigeria’s trade surplus wiped out as U.S. exports surge

Total U.S. imports from Nigeria fell to $2.12 billion in the first five months of 2025, compared to $2.65 billion in the same period of 2024, a drop of $527 million, or nearly 20%.

This contraction follows an executive order signed by U.S. President Donald Trump in April imposing a flat 10% import tariff on most countries. Nigeria was subject to an even higher 14% tariff, having previously run a significant trade surplus with the U.S.

Although crude oil, a strategic commodity, was exempted from the tariff regime, Nigeria’s non-oil exports have been severely impacted. Key sectors such as agriculture and manufacturing have seen reduced demand from American buyers. In May 2025, total U.S. imports from Nigeria stood at $400 million, down from $517 million in the same month of 2024.

While Nigerian exports have declined, American exports to Nigeria have surged, up 17.8% year-on-year. Between January and May 2025, the U.S. exported goods worth $2.42 billion to Nigeria, compared to $2.05 billion in the same period of 2024. This shift has reversed the trade balance between the nations.

Whereas Nigeria posted a $596 million surplus in the first five months of 2024, the U.S. recorded a $295 million surplus by May 2025. In May alone, America exported $515 million worth of goods to Nigeria, while imports from Nigeria stood at $400 million, giving the U.S. a monthly trade surplus of $115 million.

One of the major drivers of this turnaround is the U.S. automobile sector. Exports of motor vehicles and parts to Nigeria reached $426 million in the first five months of 2025, including $312 million in passenger vehicles, $29 million in trucks and buses, and $86 million in spare parts. These figures reflect both Nigeria’s growing appetite for automobiles and the increasing reliance on American suppliers for high-value manufactured goods.

Egypt and South Africa top African traders to the US

Nigeria’s broader trade relationship with the U.S. appears to be losing steam. The country now accounts for just 10.8% of U.S. imports from Africa and 14.8% of exports to the continent, both figures down slightly from the previous year.

Egypt has overtaken Nigeria as America’s leading African export destination, with U.S. exports to Egypt jumping by 76% year-on-year to $3.43 billion. Meanwhile, South Africa remains dominant on the import side, with the U.S. importing $8.67 billion worth of South African goods between January and May 2025, more than four times the volume of Nigerian exports.

With Nigeria’s total trade volume with the U.S. now standing at $4.54 billion, the country trails Egypt and South Africa, raising questions about its long-term competitiveness in U.S.–Africa trade relations.

As global supply chains evolve and protectionist policies reshape international commerce, Nigeria’s dependence on crude oil and limited diversification may continue to weigh on its position in the American market.

In the corresponding period of 2024, the U.S. had imported 20.4 million barrels of Nigerian crude worth $1.52 billion.

Source: Nairametrics

Economy

CBN Increases ATM Daily Cash Withdrawal Limit to N100k

Published

2 days ago

December 3, 2025

Eric

The Central Bank of Nigeria (CBN) has increased cash withdrawal limits on all channels to N500,000 weekly for individuals and N5 million for corporates.

Announcing the policy revision in a circular on Tuesday, the regulator pegged automated teller machine (ATM) withdrawals at N100,000 daily, with a weekly cumulative withdrawal of N500,000.

The development is a major shift from tighter cash policy measures introduced under the previous administration.

In December 2022, the central bank, under Godwin Emefiele, its former governor, had directed deposit money banks and other financial institutions to limit over-the-counter cash withdrawals by individuals and corporate entities per week N100,000 and N500, 000, respectively.

The CBN’s latest policy reversal, also removed the cumulative deposit limit, saying the fee on excess deposit “shall no longer apply”.

According to the regulator, the policies form part of efforts to moderate the rising cost of cash management, address security concerns, and “reduce the potential for money laundering associated with the economy’s heavy reliance on cash”.

The bank said the policies, issued over the years in response to evolving circumstances in cash management, sought to reduce cash usage and encourage accelerated adoption of other payment options, particularly electronic payment channels.

However, with the “effluxion of time”, the apex bank said the need has arisen to streamline the policies’ provisions to reflect present-day realities.

“Consequently, effective January 1, 2026, the following cash-related policies, which are for mandatory compliance by all deposit-taking financial institutions in Nigeria, shall apply nationwide,” the circular reads.

“The cumulative deposit limit is hereby removed and the fee for excess deposit shall no longer apply.

“The cumulative weekly withdrawal limit across all channels shall be N500,000 for individuals and N5 million for corporates. Cumulative weekly withdrawals above these limits shall attract excess withdrawal fees as indicated in ‘5’ below.

“The special authorisation for withdrawal of N5 million and N10 million once monthly by individuals and corporates, respectively, shall no longer apply.

“Automated Teller Machine (ATM) withdrawal limit shall be N100,000 daily (per customer), subject to a maximum of N500,000 weekly. As indicated in ‘2’ above, cash withdrawals from ATMs and point of sale devices are part of the weekly withdrawal limit indicated therein.

“Excess cash withdrawals (withdrawals above the levels indicated in ‘2’ above) shall attract fees of 3 percent and 5 percent to individual and corporate customers, respectively, on the excess amount withdrawn. The fee shall be shared 40 percent to the CBN and 60 percent to the bank or financial institution.”

According to the circular, signed by Rita Sike, CBN’s director of financial policy and regulation department, said all currency denominations “may be loaded in ATMs”.

However, the CBN retained the limit on over-the-counter encashment of third-party cheques at N100,000.

“Account holders are advised that any withdrawal under this section will form part of the cumulative weekly set in ‘2’ above”.

“Banks shall render the following monthly returns (in a format to be advised) to the respective supervisory departments (Banking Supervision Department, Other Financial Institutions Supervision Department and Payments System Supervision Department) as applicable:

“a . Returns on cash withdrawal transactions above the specified limit;

“b. Returns on Cash Deposits

“Deposit Money Banks (DMBs) shall create separate accounts to warehouse processing charges collected on cash withdrawals above the limits.

“The following accounts/entities are exempted from the application of sections 2 and 5 of this circular:

“i. Revenue generating accounts of federal, state, and local governments; and

ii. Accounts of microfinance banks and primary mortgage banks with commercial and non-interest banks.

The CBN also said the exemption of embassies, diplomatic missions and aid-donor agencies from specific cash policies “shall no longer apply”.

Economy

CBN Retains Interest Rate at 27%

Published

1 week ago

November 25, 2025

Eric

The Monetary Policy Committee of the Central Bank of Nigeria has maintained the benchmark interest rate at 27 per cent, extending its pause on monetary tightening.

The CBN Governor, Olayemi Cardoso, announced the decision on Tuesday at the end of the committee’s 303rd meeting in Abuja.

Cardoso said, “The Committee decided by a majority vote to maintain the monetary policy stance,” indicating that members were not yet convinced that current economic conditions warranted another reduction.

The move follows the 50-basis-point cut implemented in September 2025, the only rate reduction since the tightening cycle began under the current CBN leadership.

It also marks the fourth consecutive hold this year.

The MPC had raised rates six times in 2024 amid surging inflation and currency pressures.

The Punch

Economy

FG Stops Proposed 15% Import Duty on Diesel, Petrol

Published

3 weeks ago

November 13, 2025

Eric

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), on Thursday, announced discontinuation of the planned 15 per cent duty on imported petroleum products.

NMDPRA’s Director, Public Affairs Department, George Ene-Ita, conveyed the development in a statement while warning the public to shun panic buying.

President Bola Tinubu, on October 29, approved an import tariff on petrol and diesel, a policy expected to raise the landing cost of imported fuel.

The President’s approval was conveyed in a letter signed by his Private Secretary, Damilotun Aderemi, following a proposal submitted by the Executive Chairman of the Federal Inland Revenue Service, Zacch Adedeji.

The proposal sought the application of a 15 per cent duty on the cost, insurance, and freight value of imported petrol and diesel to align import costs with domestic market realities.

Implementation was slated to take effect on November 21, 2025.

The policy aimed to protect and promote local refineries like the Dangote Refinery and modular plants by making imported fuel more expensive.

While intended to boost local production, it is also expected to increase fuel costs, which could lead to higher inflation and transportation prices for consumers.

Experts have argued that the move could translate into higher pump prices for consumers, with some estimating an increase of up to N150 per litre or more.

In an update, however, NMDPRA said the government was no longer considering going ahead with implementing the petrol import duty.

“It should also be noted that the implementation of the 15% ad-valorem import duty on imported Premium Motor Spirit and Diesel is no longer in View,” the statement read in part.

Meanwhile, the NMDPRA also assured all that there is an adequate supply of petroleum products in the country, within the acceptable national sufficiency threshold, during this peak demand period.

“There is a robust domestic supply of petroleum products (AGO, PMS, LPG, etc) sourced from both local refineries and importation to ensure timely replenishment of stocks at storage depots and retail stations during this period.

“The Authority wishes to use this opportunity to advise against any hoarding, panic buying or non-market reflective escalation of prices of petroleum products.

“The Authority will continue to closely monitor the supply situation and take appropriate regulatory measures to prevent disruption of supply and distribution of petroleum products across the country, especially during this peak demand period.

“While appreciating the continued efforts of all stakeholders in the midstream and downstream value chain in ensuring a smooth and uninterrupted supply and distribution, the public is hereby assured of NMDPRA’s commitment to guarantee energy security,” the statement added.