U.S. slashes Nigerian crude imports by 47% in January

The United States sharply reduced its purchases of Nigerian crude oil in January 2026, with imports plunging by 47.16 per cent month-on-month, underscoring shifting trade patterns and intensifying competition within Africa’s oil market.

Data from the U.S. Census Bureau and the U.S. Bureau of Economic Analysis showed that U.S. crude imports from Nigeria fell to 1.664 million barrels in January, down from 3.149 million barrels in December 2025. The decline of 1.485 million barrels represents a significant contraction in Nigeria’s share of the U.S. crude market.

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In value terms, the drop was equally pronounced. The customs value of Nigerian crude imports fell from $217.36m in December to $115.99m in January, while cost, insurance and freight (CIF) value declined from $223.10m to $118.95m. The narrower gap between CIF and customs values—$2.96m in January compared to $5.74m in December suggests relatively lower shipping or insurance costs during the period.

The reduction in Nigerian volumes came amid a broader slowdown in U.S. crude imports. Total U.S. crude imports declined by 5.1 per cent, from 198.29 million barrels in December to 188.21 million barrels in January. Import values also dropped, with customs value falling from $11.41bn to $10.56bn and CIF value decreasing from $12.04bn to $11.15bn.

Rising Competition from African Peers

Nigeria also lost ground to competing African exporters. While total African crude shipments to the U.S. remained flat at 6.933 million barrels, Angola recorded a sharp increase, with exports rising from 575,000 barrels in December to 2.062 million barrels in January. Ghana emerged as a new supplier with 738,000 barrels, while Libya’s exports declined from 2.137 million barrels to 1.086 million barrels.
As a result, Nigeria’s share of total U.S. crude imports weakened to about 0.88 per cent in January, down from 1.59 per cent in December.

Despite this setback, crude oil remains the dominant component of Nigeria’s exports to the United States. Total U.S. imports from Nigeria stood at $183m in January, compared to $297m in December. Crude oil accounted for between 63.4 per cent and 65.0 per cent of that total in January, down from about 73.2 per cent in December, indicating a slight diversification as overall trade volumes declined.

Trade Balance Tilts in Favour of U.S.

The shift in trade flows resulted in a wider U.S. goods trade surplus with Nigeria, which rose to $419m in January from $84m in December. This was driven by a surge in U.S. exports to Nigeria, which increased from $381m to $602m, even as imports from Nigeria fell sharply.

Across Africa, the U.S. posted a trade deficit of $503m in January, reversing a $174m surplus recorded in December. Imports from the continent rose to $3.54bn, while exports edged slightly lower to $3.04bn.

Nigeria Still Dominates African Supply Despite Decline

On an annual basis, Nigeria remains the largest African supplier of crude oil to the United States. Total U.S. crude imports from Africa stood at 89.371 million barrels in 2025, down from 103.631 million barrels in 2024.

Nigeria accounted for 46.618 million barrels of that total in 2025, compared to 50.793 million barrels in 2024—a year-on-year decline of 8.2 per cent. However, its share of African exports to the U.S. increased to 52.2 per cent in 2025 from 49.0 per cent in 2024, reflecting a broader contraction in continental supply.

NNPC Posts Profit Despite Revenue Dip
Meanwhile, the Nigerian National Petroleum Company Limited reported a profit after tax of N385bn for January 2026, even as revenue fell sharply.

According to its latest monthly report, the company generated N2.571tn in revenue in January, down 47 per cent from N4.82tn recorded in December 2025. It remitted N726bn to the Federation during the month.

Crude oil and condensate production rose to 1.64 million barrels per day, up from 1.55 million barrels per day in December an increase of 5.8 per cent month-on-month. The divergence between rising production and declining exports to the U.S. highlights the impact of shifting global demand patterns and trade realignments.

Policy Uncertainty and Structural Constraints

The evolving trade dynamics come against the backdrop of renewed protectionist rhetoric from U.S. President Donald Trump. In 2025, the administration raised Nigeria’s tariff rate from 14 per cent to 15 per cent under a “reciprocal” trade policy framework.

Although crude oil exports are largely exempt from these tariffs, non-oil exports have faced increased costs, creating uncertainty for U.S. importers and dampening demand.

Economist Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, downplayed the broader macroeconomic impact of the shift.

“Our trade with the U.S. is not that strategic. When anything goes wrong, it is not as if it can have any fundamental effect on our economy. Our trade exposure to them is very limited,” he said.

However, Yusuf pointed to U.S. visa restrictions as a more significant long-term constraint on bilateral trade and investment, noting that barriers to travel limit business engagement and capital inflows.

The sharp drop in U.S. crude imports from Nigeria despite increased production—signals a complex interplay of market competition, pricing dynamics, and policy uncertainty. While Nigeria retains its position as a leading African supplier, the data highlights the need to diversify export markets and deepen non-oil trade to mitigate external shocks and evolving geopolitical risks.