Nigeria’s US Oil Exports Set to Decline Amid Trump’s Energy Emergency Plans.

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President Trump’s planned executive order and declaration of a national energy emergency to boost US oil and gas production may negatively impact Nigeria’s oil demand and revenue. 

This comes as oil prices, including Nigeria’s Bonny Light, dropped to $80 per barrel from $83 per barrel, amidst traders’ anticipation of Trump’s policy agenda.

The US, once a major importer of Nigerian crude oil, has reduced its imports due to shale oil production, government policies, and other factors. Despite this, the US still imported $4.73 billion worth of oil and gas from Nigeria in 2023. Experts predict that this revenue will likely decrease in 2025 and beyond following Trump’s executive order.

Dr. Muda Yusuf, economist and CEO of the Centre for the Promotion of Private Enterprise, notes that increased US oil and gas production will lead to a global supply increase, causing energy prices to fall. 

“So, if energy prices fall, of course, that has implications for our own revenue,” Yusuf said.

However, he also mentions that this could be positive for businesses, as reduced crude oil prices typically decrease the cost of petroleum products.

Dr. Bala Zakka, a Port Harcourt-based energy analyst, believes that Trump’s policies will encourage Nigeria to increase refining capacity and add more value to the domestic economy. 

“Major importers from Nigeria indirectly encourage our nation to be lazy, exporting crude oil instead of processing,” Zakka said.

The National President of the Oil and Gas Service Providers Association of Nigeria (OGSPAN) also weighed in, stating that Nigeria should reduce its dependence on oil and other economies. 

“Every nation continuously reviews its environment and takes decisions on the best ways and means to grow its economy. Nigeria should do the same,” he said.

In related news, 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 will ensure an easy flow of petrol during the Yuletide season.

According to PETROAN’s National Public Relations Officer, Dr. Joseph Obele, the petrol supply agreement reached with the 650,000 barrels per day Dangote Refinery will avert any possible shortage of premium motor spirit during the period. This is due to the efforts of PETROAN’s distribution technical committee in charge 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,” Dr. Obele said. 

The group also commended the Vice President of Dangote Group and Managing Director of Dangote Refinery, Mr. Devakumar V. G. Edwin, for his cooperation and strategies deployed to make petroleum products available to all Nigerians throughout the end-of-year festivities and beyond.

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