Oil imports from Nigeria may decline due to President Donald Trump’s plan to sign an executive order and declare a national energy emergency.
The new US president intends to boost US local oil and gas production, which may impact its demand for Nigeria’s oil and significantly reduce Nigeria’s oil revenue.
The US used to import a considerable amount of crude oil from Nigeria. The commencement of shale oil production and deliberate government policies have recently reduced Nigeria’s oil and gas imports.
Despite this reduction, US oil and gas imports from Nigeria were worth $4.73 billion in 2023.
According to experts, Nigeria’s revenue will likely decrease in 2025 and beyond following Trump’s executive order and declaration of a national energy emergency.
Dr. Muda Yusuf, an economist and CEO of the Centre for the Promotion of Private Enterprise, stated, “Naturally, if investments in oil and gas increase in the United States, that will increase the global supply. If global supply increases, energy prices are likely to fall.“
Dr. Yusuf added that the decrease in energy prices would affect Nigeria’s revenue. While that could mean less money for the government, it may be favorable for businesses as the cost of petroleum products would likely be reduced.
He also mentioned that Trump’s ability to calm the situation between Russia and Ukraine could increase global oil production and lower prices even further.
Another expert, Dr. Bala Zakka, a Port Harcourt-based energy analyst, believes that Trump’s policies would encourage increased refining in Nigeria and other African nations.
“Major importers from Nigeria indirectly encourage our nation to be lazy, exporting crude oil instead of processing to add more value to the economy,” he said.
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