₦airaland Forum

US oil imports from Nigeria to drop as Trump plans energy emergency order

THE President Trump planned an executive order and declaration of a national energy emergency, targeted at enhancing the United States oil and gas production could impact on Nigeria’s oil demand and revenue generation.


This was even as prices of oil, including Nigeria’s Bonny Light dropped to $80 per barrel from $83 per barrel, yesterday, as traders await U.S. President-elect Donald Trump’s inauguration in the hope of some clarity on his policy agenda.


However, the United States used to import a bulk of its crude oil from Nigeria, but the commencement of shale oil, deliberate government policy and other factors, reduced the nation’s oil and gas import in recent times.

Despite the reduction, recent data indicated that the United States oil and gas import from Nigeria was worth $4.73 billion in 2023.

According some experts, the revenue would likely decrease in 2025 and beyond following President Trump executive order and declaration of a national energy emergency.

In an interview with Vanguard, yesterday, an economist and Chief Executive Officer, Centre for the Promotion of Private Enterprise, CPPE, Dr Muda Yusuf, said: “Naturally, if investments in oil and gas increase in the United States and the US of course is a major oil producer that will increase the global supply. If global supply increases, energy prices are likely to fall.

“So, if energy prices fall, of course, that has implications for our own revenue. So it’s likely to negatively impact on our oil price, on our oil revenue but it may be positive for businesses because a reduction in crude oil price or commodity or global oil price typically reduces the cost of petroleum products, including the Premium Motor Spirit, PMS, also known as petrol, diesel and jet fuel.

“However, it’s a double-edged sword as changes, if the price increases; it will favour the government and penalize the private sector, who uses energy. If the price drops, it penalizes the government and benefits the citizens and investors because their energy costs will drop.

“That is one implication of the Trump presidency. The second implication is, if he’s able to calm down the situation between Russia and Ukraine. Russia is a major oil producer as well, a major gas producer.

“So, he’s able to calm down Russia and Ukraine and he has the potential to do that because it is part of the commitment that he has made.

Trump revokes ‘nearly 80 destructive radical executive actions’ of Biden administration
“If he’s able to do that, then we are likely to see more production of oil. We are likely to see the lifting of sanctions on Russia and if that happens, oil production will increase and prices will fall. Again, that will affect revenue negatively, but it will benefit businesses because cost of energy will drop.

“So, that is the nexus for me between what is happening with Trump policies and our domestic economy, especially the oil and gas sector.”

On his part, a Port Harcourt-based energy analyst, Dr. Bala Zakka, said: “Major importers from Nigeria, indirectly encourage our nation to be lazy, exporting crude oil instead of processing to add more value to the economy.

“I strongly believe that by reducing importation through his policies, President Trump would encourage increased refining in Nigeria and other African nations. We need to expand our refining capacity to refine more petroleum product and derivatives, capable of adding value to the domestic economy.”

Also, the National President of Oil and Gas Service Providers Association of Nigeria, OGSPAN, said: “Every nation continuously reviews its environment and takes decisions on the best ways and means to grow its economy. Nigeria should do the same in order to reduce dependence on oil and other economies.”

Meanwhile, the Petroleum Products Retail outlets Owners Association of Nigeria, PETROAN, has assured consumers that the coming on stream of the Dangote Refinery and the NNPC Limited owned Port Harcourt refinery would ensure easy flow of petrol during the Yuletide season.

PETROAN in a statement by its National Public Relations Officer, Dr Joseph Obele said the petrol supply agreement reached with the 650,000 barrels per day Dangote Refinery would avert any possible shortage of premium motor spirit during the period.

This, according to Dr Obele, is due to the efforts of PETROAN distribution technical committee incharge of planning and execution of zero-fuel scarcity strategy.

“We are happy that Nigerians are going to travel effortlessly during this period of the year”, the Group added.

Recall that the National President of PETROAN, Dr Billy Gillis-Harry, on Monday 2nd December 2024 led the negotiation team of the association to a fruitful strategic business meeting with the management of Dangote Refinery in Lagos.

PETROAN noted that the “sealing of a transactionary deal with Dangote Refinery was the aftermath of a successful buyer-seller negotiation and agreement secured by PETROAN at the strategic meeting.

“PETROAN National President commended the Vice President of Dangote group & Managing Director of Dangote Refinery, Mr. Devakumar V. G. Edwin, for his cooperation and strategies deployed so far to make petroleum products available to all Nigerians throughout the end of year festivities and beyond.”

DrAda:
Pro Trumps, how are you all doing today?

kk2027:
We're doing great
America is for Americans
Nigeria remains for Nigerians

Everybody should chose their leaders wisely

kk2027:
We're doing great
America is for Americans
Nigeria remains for Nigerians

Everybody should chose their leaders wisely

ruffhandu:
One person just took over power and the whole world is shaking. Hmn. I wish a president will come to power in Nigeria and declare state of emergency in power sector, for once at least.

DrAda:
Now being philosophical? Let's see how you can keep this up in a few months when it finally hits home.

Morbeta11:
https://www.vanguardngr.com/2025/01/us-oil-imports-from-nigeria-to-drop-as-trump-plans-energy-emergency-order/

kk2027:

Are yoi scared another president is fixing his country

Is our country allergic to good leaders?

LegacyB:
Hahaha 😂. Those Nigerian American wannabe supporters of Trump would love this news.

kk2027:

We absolutely love it
Its about time we choose our leaders wisely so we won't be fidgeting when another country is getting their acts together

DrAda:
You still don't get it do you?

kk2027:
That was going to be PO but seems we're allergic to good leaders

Sunsen:
Funny you.... We've heard governors that tried to make their states less dependent on FG in terms electricity and made moves to generate their own electricity.


What did he actually do that gave you this impression?

DrAda:
Pro Trumps, how are you all doing today? By the time Trump is fully done, many of you will wish the Democrats were still in power. Enjoy

On the flip side, perhaps this will finally make us sit up as a nation but I have little faith that our leaders will rise to the occasion. It is truly a sad situation.

ttmacoy:
And it's going to drop further with Trump's plan to drill baby drill. This means the US will revert back to being a net exporter and try to bring down prices.

kk2027:
That was going to be PO but seems Naija is allergic to good leaders

garykoeman:
Peter is part of the clueless leaders we have in Nigeria

Obi was a failure in Anambra suddenly turn a messiah.

DrAda:
Pro Trumps, how are you all doing today? By the time Trump is fully done, many of you will wish the Democrats were still in power. Enjoy

On the flip side, perhaps this will finally make us sit up as a nation but I have little faith that our leaders will rise to the occasion. It is truly a sad situation.

chigo32:
Let ur leaders in nigeria have interest of d masses at heart