US Drastically Reduces Nigerian Crude Oil Purchases as Global Energy Crisis Intensifies
The United States has significantly curtailed its imports of Nigerian crude oil, with purchases dropping by nearly 47% in January 2026. This sharp decline comes as multiple nations declare energy emergencies worldwide, disrupting revenue streams and altering international trade patterns.
Precipitous Drop in Export Volumes and Values
According to the latest data from the U.S. Census Bureau and Bureau of Economic Analysis, American imports of Nigerian crude fell to 1.664 million barrels in January 2026, representing a dramatic decrease from 3.149 million barrels recorded in December 2025. This reduction of 1.485 million barrels within a single month underscores a substantial contraction in Nigeria's presence within the U.S. crude oil market.
The financial impact has been equally severe. The customs valuation of Nigerian crude imports plunged from $217.36 million in December to $115.99 million in January. Similarly, the cost, insurance, and freight (CIF) value—which incorporates additional expenses like shipping and insurance—dropped from $223.10 million to $118.95 million during the same timeframe.
Shifting Market Dynamics Within Africa
While Nigeria's exports to the U.S. have diminished, other African nations have capitalized on the changing landscape. Angola experienced a remarkable surge, increasing its exports from 575,000 barrels in December to 2.062 million barrels in January. Ghana entered the U.S. market with 738,000 barrels after having no exports in the previous month. Conversely, Libya witnessed a decline, with its exports falling from 2.137 million barrels to 1.086 million barrels.
Nigeria's share of total U.S. crude imports weakened considerably, dropping to approximately 0.88% in January from about 1.59% in December. This reflects the substantial reduction in the volume of oil Nigeria supplied to American markets.
Broader Trade Implications and Economic Context
Despite the downturn in crude oil exports, the United States achieved a trade surplus with Nigeria totaling $419 million in January, a significant increase from the $84 million surplus recorded in December. This improvement was primarily driven by a substantial rise in U.S. exports to Nigeria, which climbed from $381 million to $602 million, even as imports from Nigeria declined.
However, the broader U.S.-Africa trade relationship tells a different story. The United States registered a trade deficit of $503 million with Africa in January, reversing a $174 million surplus from December. This shift occurred as imports from Africa rose from $2.88 billion to $3.54 billion, while U.S. exports to the region remained nearly stagnant, decreasing slightly from $3.05 billion to $3.04 billion.
NNPC Performance Amid Export Challenges
The Nigerian National Petroleum Company Limited reported a profit after tax of ₦385 billion in January 2026, despite facing significant revenue challenges. The state-owned energy company generated ₦2.571 trillion in revenue during the month, remitting ₦726 billion as statutory payments to the Federation.
This represents a sharp 47% decline in monthly revenue, falling from ₦4.82 trillion in December 2025 to ₦2.57 trillion in January 2026. This contraction occurred even as crude oil and condensate production increased marginally to 1.64 million barrels per day, up from 1.55 million barrels per day recorded in December.
Tariff Policies and Trade Diversification Concerns
The Trump administration's implementation of a "reciprocal" tariff regime in August 2025, which raised Nigeria's tariff rate from 14% to 15%, has created uncertainty for American importers. While crude oil exports have largely been exempted from these new tariffs, non-oil exports appear to have borne the brunt of the disruption.
Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, downplayed the immediate impact of U.S. tariffs on Nigeria's economy. "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 emphasized that Nigeria's exports to the United States remain heavily concentrated in crude oil and a few other goods like fertilizers, indicating limited diversification beyond petroleum products. Yusuf identified U.S. visa policies as a more significant long-term obstacle than tariffs, noting that travel restrictions hinder business dealings and discourage investment between the two nations.
