₦airaland Forum

The United States reduced its purchase of Nigerian crude oil sharply in January 2026, with imports dropping by about 47.16 per cent month-on-month, according to the latest data from the U.S. Census Bureau and the U.S. Bureau of Economic Analysis.

Figures from the U.S. International Trade in Goods and Services report indicate that U.S. crude imports from Nigeria fell to 1.664 million barrels in January 2026, down from 3.149 million barrels recorded in December 2025. This represents a decline of 1.485 million barrels within one month, showing a significant contraction in Nigeria’s share of the U.S. crude market.

In value terms, the drop was equally steep. The customs value of Nigerian crude imports declined from $217.36m in December to $115.99m in January, while the cost, insurance, and freight value fell from $223.10m to $118.95m over the same period. The difference between the two measures reflects additional costs such as shipping and insurance included in CIF values, which are excluded from customs valuation.

This means that in January, the CIF value of Nigerian crude was about $2.96m higher than its customs value, compared to a wider gap of about $5.74m in December. The narrowing gap suggests relatively lower freight or insurance costs, or shorter shipping distances within the period.

The contraction comes amid a broader slowdown in total U.S. crude imports, which declined from 198.29 million barrels in December to 188.21 million barrels in January, representing a drop of about 5.1 per cent. Total import value also fell, with customs value decreasing from $11.41bn to $10.56bn, while CIF value dropped from $12.04bn to $11.15bn.

Within Africa, Nigeria lost ground to some peers. While total African crude exports to the U.S. remained flat at 6.933 million barrels, Angola recorded a sharp increase, rising from 575,000 barrels in December to 2.062 million barrels in January.

Ghana also emerged as a new supplier with 738,000 barrels, having recorded no measurable exports in December. By contrast, Libya saw its exports to the U.S. decline from 2.137 million barrels to 1.086 million barrels over the period.

Nigeria’s share of total U.S. crude imports also weakened. The country accounted for roughly 0.88 per cent of total U.S. crude imports in January, down from about 1.59 per cent in December, reflecting the sharp reduction in volumes.

Further analysis of U.S. trade data shows that 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 2026, compared to $297m in December 2025.

With crude oil imports valued at $115.99m (customs basis) and $118.95m on a CIF basis, crude accounted for approximately 63.4 per cent to 65.0 per cent of total U.S. imports from Nigeria in January. This compares with about 73.2 per cent in December on a customs basis, indicating a relative moderation in crude dominance as overall imports declined.

The PUNCH further observed that the U.S. recorded a goods trade surplus of $419m with Nigeria in January, up from $84m in December. This was driven by a rise in U.S. exports to Nigeria, which increased from $381m to $602m, even as imports from Nigeria declined.

Across Africa, the U.S. posted a trade deficit of $503m in January, reversing a $174m surplus recorded in December. Total U.S. imports from Africa rose from $2.88bn to $3.54bn, while exports to the region edged slightly lower from $3.05bn to $3.04bn.

The PUNCH earlier reported that Nigeria accounted for about 52 per cent of Africa’s crude oil exports to the United States in 2025. According to the previous report, total U.S. crude imports from Africa stood at 89.371 million barrels in 2025, down from 103.631 million barrels in 2024, representing a decline of 14.26 million barrels or 13.8 per cent.

Out of the 89.371 million barrels imported from Africa in 2025, Nigeria supplied 46.618 million barrels, compared to 50.793 million barrels in 2024. This was a drop of 4.175 million barrels or 8.2 per cent year on year.

Despite the lower volume, Nigeria’s share of Africa’s crude exports to the U.S. rose. In 2025, Nigeria’s 46.618 million barrels accounted for 52.2 per cent of Africa’s total shipments, up from 49.0 per cent in 2024, when it exported 50.793 million barrels out of the continent’s 103.631 million barrels.

The PUNCH earlier reported that the Nigerian National Petroleum Company Limited recorded a profit after tax of N385bn in January 2026, even as crude oil and condensate production rose to 1.64 million barrels per day, according to the firm’s latest monthly operational report.

The January 2026 NNPC Monthly Report Summary, released on Monday, showed that the state-owned energy company generated N2.571tn in revenue during the month while remitting N726bn as statutory payments to the Federation.

This means the company recorded a sharp 47 per cent decline in its monthly revenue, which fell from N4.82tn in December 2025 to N2.57tn in January 2026. This contraction occurred despite a marginal increase in the company’s after-tax profit.

It disclosed that Nigeria produced 1.64 million barrels per day, up from 1.55 million barrels per day recorded in December 2025. This represents an increase of 0.09mbpd, or about 5.8 per cent month-on-month.

The PUNCH observed that the decline in crude exports to the U.S. occurred despite higher production. The trade outcomes come against the backdrop of renewed US protectionist rhetoric and tariff-focused trade policies associated with US President Donald Trump, which have influenced sourcing decisions, pricing structures, and trade flows globally.

Last year, Donald Trump signed an executive order raising Nigeria’s tariff rate from 14 per cent to 15 per cent, with Washington implementing its “reciprocal” tariff regime.

The order, issued in late July, took effect on August 7, 2025. Although crude oil has been exempted in several cases, the higher duty applies directly to a wide range of non-oil Nigerian exports, creating uncertainty for American importers and dampening demand ahead of and after the effective date.

With crude oil exports largely exempted from the new tariff regime, non-oil exports appear to have borne the brunt of the disruption.

A renowned economist and Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, downplayed the impact of the U.S. tariffs on Nigeria.

“Our trade with the US 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,” Yusuf explained.

He noted that Nigerian exports to the US are dominated by crude oil and a handful of other commodities, such as fertilisers, making the country’s trade profile narrow and underdeveloped in non-oil areas. Yusuf added that Nigeria’s tariff exposure is relatively moderate compared with other countries.

However, he identified another challenge beyond tariffs: US visa policy. “The bigger challenge for Nigeria’s trade relationship with the US is Washington’s visa policy. Barriers to travel limit business interactions and investment inflows. That is more critical than tariffs in the long run,” he said.

Since its inception, the Trump administration has steadily rolled out a series of visa restrictions and travel bans targeting Nigeria and several other countries.

erad:
Lol... America's loss. It's probably because they are saving up for their master's (Israel) war.

erad:
Lol... America's loss. It's probably because they are saving up for their master's (Israel) war.

WiseBizInvestor:
What have we gained as ordinary Nigerians all the while our export to the USA was doing fine?

samogo1:
This is a good thing. It means we can now sell more to dangote and petroleum product can now be cheaper. Or am I missing something?

nairalanda1:
Yes, and your government is still relying on oil as if it would never run out.

See, if we do not do things like develop industry, science and research in this country, i mean invest more, and if we do not diversify our economy, we are going to be caught pants down when the oil stops ruling the earth.

Oil is finite. That it is still being produced despite previous predictions that we would run out by the late 1990's...does not mean that it would last forever. Meanwhile a lot of our major oil buyers are moving to alternative energy. Even electric cars are becoming more and more popular.

And when someone discovers nuclear fusion, that's the end of it.

Nigeria should stop looking and fighting over oil money, and start looking at diversification, industrialization and increased investment in science and tech.

Like now, we throw away tons of refuse in this country that could be used to power electricity power stations, but no, we no wan do.

tollyboy5:
Out of context arguement.
It's a good thing US cut it by half. So we can supply more to Dangote instead granting forex to Dangote to import crude oil.

BigElEddy:
Maybe there are about to start buying from Iran as part of the negotiations

Bobodee09:
The US president said he could "take the oil in Iran" and possibly seize the country's major fuel hub of Kharg Island.

Read more: https://bbc.in/4dbHZeq

nairalanda1:
That is why, am sorry to say, you never get good leaders...na the same leaders you dey complain about from admin to admin.

If you do not see diminised reliance on our oil revenue as a danger sign, and the lack of diversification we have here, then you better wake up now.

Also, US hasn't been our major buyer for a long long time

WiseBizInvestor:
What have we gained as ordinary Nigerians all the while our export to the USA was doing fine?

Image123:
Not exactly.

Most of the oil sales are forwards

tollyboy5:
What I see as a bigger problem is local refineries needing dollar to import crude from an oil producing country.
And no light due to Gass problem, government spending billions on solar yet no improvement lol.

yinkeys:
What is the AU doing
African countries can trade amongst themselves

nairalanda1:
The US has been developing what they call energy independence for decades. Infact long before 2015, US imports of our oil have been reducing...USA used to import 97% of our crude in 1996, now they import 0.88% DOWN from 1.25% last year down from 3% over a deacade ago.

That is why your APC government is not serious. IN 11 years they have developed no plan for the time when the USA would stop buying our crude all together.

NO plan to diversify the economy, or to make industries the basis of our economy, and so forth. No wonder we have a lot of issues.

So, stop rejoicing.

Klington:
Bola amed tinubu is a failure.

anonimi:
May 1, 2025

May Day: Hunger, unemployment, insecurity real— Tinubu

According to him: “The theme demands our collective attention and serves as a stark reminder of the need to create an environment where every worker feels safe, valued, and empowered to contribute to the growth and prosperity of our nation. As your President, I assure you that this administration is committed to creating such an environment for the common good.”

On the economic hardship, he noted that while it is a global phenomenon, its effects on Nigerians are particularly severe.

Tinubu said: “I am aware of the peculiarities of the economic hardship Nigerians face—rising living costs, hunger, insecurity, unemployment, and the loss of livelihoods. These challenges are real and demand definitive solutions, which I am poised to address as your President.

https://www.vanguardngr.com/2025/05/may-day-hunger-unemployment-insecurity-real-tinubu/

tommylee:
Emmmm Mr Smartypants can u post for us here oil revenue vs Non oil revenue from 2023 - date I want to check something........no be everybody be mumu for here nah......
Did u also factor in the US invasion of Venezuela(where dey get free and cheap oil)
Did u also factor in the war in the middle east.
As I said earlier no be everybody be mumu for here.......

tommylee:
Emmmm Mr Smartypants can u post for us here oil revenue vs Non oil revenue from 2023 - date I want to check something........no be everybody be mumu for here nah......
Did u also factor in the US invasion of Venezuela(where dey get free and cheap oil)
Did u also factor in the war in the middle east.
As I said earlier no be everybody be mumu for here.......

samogo1:
This is a good thing. It means we can now sell more to dangote and petroleum product can now be cheaper. Or am I missing something?

nairalanda1:
The US has been developing what they call energy independence for decades. Infact long before 2015, US imports of our oil have been reducing...USA used to import 97% of our crude in 1996, now they import 0.88% DOWN from 1.25% last year down from 3% over a deacade ago.

That is why your APC government is not serious. IN 11 years they have developed no plan for the time when the USA would stop buying our crude all together.

NO plan to diversify the economy, or to make industries the basis of our economy, and so forth. No wonder we have a lot of issues.

So, stop rejoicing.

esnbrutality:
Its best you tell REMI TINUBU that sneaking to USA will not be tolerated again.

All her shenanigans have been exposed...and if she thinks she is bigger than Emmanuel macron then she will be surprised in all totality.

After her visit America stopped buying g crude from NIGERIA in bulk...

Remember this ..

After Iran is dusted the next zone is NIGERIA. ..and Israel is coming in very strongly.

Nuff Said.