Nigeria Exports $1.88bn Worth of Crude Oil to US Amid Falling Demand

Nigeria has exported crude oil valued at $1.88 billion to the United States in the first half of the year, even as overall demand for the commodity from the world’s largest economy shows signs of decline. The latest trade figures reveal that while the U.S. remains one of Nigeria’s key crude destinations, the volume of shipments has dropped compared to previous years due to changing dynamics in global energy consumption and increasing domestic production within America.

According to industry analysts, the U.S. imported an estimated 50 million barrels of Nigerian crude in the first six months of the year, representing a notable decline from earlier periods when Nigeria was among the top five suppliers of oil to the American market. The reduction has been attributed to a combination of factors including increased U.S. shale production, which has reduced reliance on foreign oil, and a global push toward energy diversification and transition to renewables.

Despite the dip in volume, the value of Nigeria’s crude exports to the U.S. has remained significant due to elevated global oil prices, which have hovered around $80–$90 per barrel over the period under review. Analysts note that although prices provided a buffer for Nigeria’s foreign exchange earnings, the country faces the risk of losing more market share if it does not take proactive steps to secure new buyers or improve production efficiency.

Data from the Nigerian Upstream Petroleum Regulatory Commission indicates that the U.S. accounted for about 10 percent of Nigeria’s total crude exports in the first half of the year, compared to over 30 percent a decade ago. This shift reflects broader global trends where Asian countries, particularly India and China, have emerged as the largest buyers of Nigerian oil. Experts point out that Nigeria’s light sweet crude remains highly sought after due to its low sulfur content, which makes it cheaper to refine into high-value products like gasoline and diesel. However, competition from other oil-producing nations like Angola and Brazil continues to intensify.

Energy policy experts have advised the federal government to leverage trade and diplomatic relations to secure more stable markets for Nigerian crude. With the United States increasingly focusing on energy self-sufficiency, Nigeria is expected to deepen its engagement with Asian and European refiners to sustain its export earnings. The recent signing of long-term supply agreements with several global refiners and traders, as well as ongoing efforts to ramp up production from marginal oil fields, are steps aimed at stabilizing the country’s oil export profile.

The decline in U.S. demand also poses fiscal challenges for Nigeria. Oil remains the country’s primary source of foreign exchange and accounts for over 70 percent of government revenue. However, production bottlenecks, pipeline vandalism, oil theft, and underinvestment have hindered Nigeria from fully maximizing its oil resources. The Nigerian National Petroleum Company Limited (NNPCL) has been making efforts to address these challenges, including implementing new surveillance contracts and deploying technology to monitor and secure oil infrastructure.

Global oil demand projections suggest that while consumption in the U.S. and Europe may continue to plateau or decline, emerging markets will drive most of the growth. Nigeria’s ability to position itself competitively in these markets will be crucial to sustaining its oil revenues. The coming onstream of domestic refineries like the Dangote Refinery is also expected to reduce Nigeria’s dependence on crude exports by boosting local refining capacity and creating opportunities for refined product exports.

Industry players believe that diversifying Nigeria’s energy portfolio is essential in the long term. While crude oil will continue to play a major role in the economy, increasing investments in gas production, petrochemicals, and renewables are critical to future-proofing Nigeria’s energy sector. The government’s recent efforts to promote gas as a transition fuel and its engagement with international investors for infrastructure development are seen as positive steps.

The $1.88 billion worth of crude shipments to the U.S. underscores Nigeria’s continued relevance in the global oil trade, but the declining demand from its once-largest customer highlights the need for strategic adjustments. Without such measures, the country risks revenue shortfalls and economic instability, especially as the global energy landscape evolves toward cleaner and more sustainable alternatives.

Looking ahead, stakeholders urge the Nigerian government and oil companies to optimize production costs, secure export infrastructure, and build stronger bilateral agreements with buyers in growth markets. By adapting to these changes, Nigeria can maintain its position as a key player in the global oil industry despite shifting demand patterns.

 

As global crude oil trade continues to evolve, Nigeria’s future earnings will depend on its ability to respond proactively to demand fluctuations, enhance its competitiveness, and embrace new energy opportunities. The recent data on exports to the U.S. serves as both a reminder of Nigeria’s importance as an oil supplier and a warning of the need to innovate and diversify for a sustainable economic future.