Economy

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

Published

1 year 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

World Bank Okays $1.25bn Loan for Nigeria, Unveils 6-Year Growth Strategy

Published

3 weeks ago

July 1, 2026

Eric

The World Bank has approved a $1.25 billion Development Policy Financing (DPF) loan for Nigeria as part of a new six-year partnership framework to accelerate private sector-led growth, create jobs, and support key economic reforms.

The approval, announced on Wednesday, falls under the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) programme and is part of the World Bank’s Country Partnership Framework (CPF) for Nigeria, covering 2026 to 2032.

According to the bank, the financing will support reforms to improve competitiveness, deepen capital markets, modernise regulations for the digital economy, strengthen power sector reforms, expand agricultural productivity and enhance domestic revenue mobilisation. The programme also seeks to reduce trade barriers in line with Nigeria’s commitments under ECOWAS and the African Continental Free Trade Area.

The approval follows public debate over Nigeria’s rising debt profile, with some Nigerians questioning the country’s continued reliance on external borrowing and calling for greater transparency in the use of previous World Bank loans.

Beyond the financing, the World Bank said the new partnership framework aims to expand electricity access to 32 million Nigerians, provide broadband connectivity to 58 million people, improve health and nutrition services for 40 million citizens and support 9.5 million farmers through higher agricultural productivity.

World Bank Country Director for Nigeria, Mathew Verghis, said recent macroeconomic reforms had helped stabilise the economy but stressed that sustained improvements in living standards would depend on addressing structural constraints to private investment and job creation.

The World Bank Group added that its private sector arms, the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), will support the strategy by mobilising private capital, expanding infrastructure investment and providing guarantees to reduce investment risks.

The new framework reflects the World Bank’s continued focus on supporting Nigeria’s economic reforms while encouraging greater private sector participation to drive long-term growth and reduce poverty.

Economy

Dangote Refinery Files Lawsuit Against FG, NNPC, Marketers over Petrol Import Licences

Published

2 months ago

May 18, 2026

Eric

Dangote Petroleum Refinery has filed a fresh lawsuit against the Nigerian National Petroleum Company Limited (NNPC) and several fuel marketers, seeking to overturn fuel import licences issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

According to court documents filed at the Federal High Court in Lagos and cited by Reuters, the refinery is asking the court to nullify import permits recently granted or renewed by the regulator, arguing that the approvals violate an earlier directive ordering all parties to maintain the status quo pending the determination of the case.

The legal action comes at a time when Nigeria is recording a sharp decline in petrol imports due to rising domestic refining capacity, largely driven by output from the Dangote Refinery.

In its filing, Dangote Refinery argued that Nigerian law permits fuel importation only when local production is unable to meet national demand. The company maintained that continued issuance of import licences undermines its operations as it ramps up production from its multi-billion-dollar refinery located on the outskirts of Lagos.

Fuel marketers, however, have consistently defended importation, insisting that imports remain necessary to guarantee a stable supply and prevent shortages across the country.

This is not the first dispute between Dangote Refinery and fuel importers. In 2025, the company filed a similar suit against NNPC Ltd and several marketers, including AYM Shafa Ltd, A.A. Rano Ltd, T. Time Petroleum Ltd, 2015 Petroleum Ltd and Matrix Petroleum Services Ltd, while also seeking ₦100 billion in damages. The suit was later withdrawn without explanation.

Recent industry data showed petrol imports dropped to 965.52 million litres in Q1 2026 from 2.43 billion litres in the same period of 2025. Meanwhile, supply from local refineries rose to 3.18 billion litres, accounting for about 76.7 percent of Nigeria’s petrol supply during the quarter.

Economy

World Bank Flags ‘Hidden Spending System’ Diverting N34.53trn of Nigeria’s Revenue

Published

3 months ago

April 19, 2026

Eric

The World Bank has raised concerns over Nigeria’s fiscal framework, revealing that more than N34.53 trillion was diverted from federation revenue over the past three years through pre-distribution deductions.

In its latest Nigeria Development Update obtained from its website, the global lender disclosed that although total federation revenue rose sharply to about N84 trillion between 2023 and 2025, about 41 per cent of the earnings did not reach the Federation Account for distribution to the federal, state and local governments.

According to the report, gross revenue increased from N17.08 trillion in 2023 to an estimated N37.44 trillion in 2025. However, deductions classified as “first-line charges” also rose significantly, from N6.22 trillion to nearly N15 trillion within the same period, reducing the pool of funds available for distribution.

The World Bank noted that the development has created a paradox in which rising revenues have not translated into improved public spending capacity, as a substantial portion is automatically retained by certain agencies before allocation.

It explained that reforms such as the removal of petrol subsidy and foreign exchange adjustments boosted nominal revenues, but much of the gains were offset by the structure of deductions tied to cost of collection and statutory transfers.

Agencies such as the Nigeria Customs Service, Nigerian National Petroleum Company Limited, and the Federal Inland Revenue Service account for a significant portion of these deductions. The report stated that their funding is based on fixed percentages of gross revenue, leading to higher allocations as revenues increase.

Describing the model as “pro-cyclical”, the Bretton Woods institution said it operates outside the conventional budgetary framework and weakens legislative oversight. In some cases, allocations to individual agencies exceed the revenues of several states and even the budgets of key federal ministries.

The report also highlighted the impact on public finances, noting a decline in capital expenditure from N5.5 trillion in 2024 to N4.5 trillion in 2025, with only about 25 per cent of the approved capital budget implemented. Meanwhile, the federal fiscal deficit remained elevated at N16.9 trillion, driven by debt servicing and recurrent expenditure.

The World Bank warned that the current arrangement undermines fiscal transparency and accountability, as significant portions of public revenue are spent outside the standard appropriation process.

Source: tribuneonline