US oil imports from Nigeria are expected to drop as President Trump plans an executive order declaring a national energy emergency aimed at boosting US oil and gas production. This move could impact Nigeria’s oil demand and revenue generation.
Oil prices, including Nigeria’s Bonny Light, fell from $83 to $80 per barrel as traders await clarity on Trump’s policy agenda following his inauguration. While the US once imported a significant portion of its crude oil from Nigeria, the rise of shale oil and other factors have reduced these imports in recent years.
Despite this decline, US oil and gas imports from Nigeria amounted to $4.73 billion in 2023. However, experts predict these figures will fall further in 2025 due to Trump’s energy policies.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, explained that an increase in US oil and gas production would likely boost global supply, leading to lower energy prices. This could negatively affect Nigeria’s oil revenue but benefit businesses by reducing costs for petroleum products like petrol, diesel, and jet fuel.
However, if oil prices rise, the government will benefit, while the private sector may struggle with higher energy costs. Another key factor is Trump’s potential to ease tensions between Russia and Ukraine, which could lift sanctions on Russia and lead to more oil production, further lowering prices.
Energy analyst Dr. Bala Zakka emphasized that reduced US imports could encourage Nigeria to refine more oil domestically, adding value to the economy instead of just exporting crude. He called for an expansion of refining capacity in Nigeria and Africa.
The National President of the Oil and Gas Service Providers Association of Nigeria (OGSPAN) echoed the need for Nigeria to reduce its dependence on oil and diversify its economy.
Meanwhile, the Petroleum Products Retail outlets Owners Association of Nigeria (PETROAN) assured consumers that the Dangote Refinery and NNPC Limited’s Port Harcourt refinery would ensure a steady supply of petrol during the Yuletide season. PETROAN’s technical committee has been working to prevent fuel shortages, with agreements in place to secure 650,000 barrels per day from Dangote Refinery.
PETROAN’s National President, Dr. Billy Gillis-Harry, praised the successful business negotiations with Dangote Refinery, ensuring continuous supply of petroleum products through the end-of-year period.
