News Report – July 23, 2025
In a historic shift, the United States became a net exporter of crude oil to Nigeria for the first time in February 2025, according to newly released international trade data.
The reversal in oil trade flow marks a significant development in the global energy market, as Nigeria, traditionally a major oil exporter, imported more crude from the U.S. than it shipped out during the month under review. Analysts attribute this to Nigeria’s ongoing domestic refining challenges, disruptions in crude production, and the rising demand for light sweet crude, which aligns with U.S. supply characteristics.
The U.S. Energy Information Administration (EIA) confirmed that Nigeria’s crude imports from the U.S. exceeded its exports for the first time on record, signaling a rare energy trade inversion between the two nations. This shift reflects not only Nigeria’s structural issues in its oil sector but also the rising influence of U.S. shale oil in global markets.
Energy experts believe the trend underscores the urgent need for Nigeria to boost local refining capacity, particularly as the country struggles with fuel subsidies, pipeline vandalism, and underperforming refineries. Despite the launch of the Dangote Refinery, Nigeria continues to rely on imported refined petroleum products, and now even crude oil, to meet domestic energy demands.
The development has sparked fresh conversations among policymakers and stakeholders about diversifying energy sources, strengthening energy infrastructure, and rethinking Nigeria’s position in the global oil value chain.
