Refined oil accounted for more than two-thirds of the United Kingdom’s total goods exports to Nigeria in the year ending June 2025, rising sharply to £1.5bn.
According to the latest UK–Nigeria Trade and Investment Factsheet from the UK Department for Business and Trade, refined oil represented 68.8% of all UK goods shipped to Nigeria, marking a 62.8% increase compared with the previous year.
Total UK exports to Nigeria rose by 12.3% to £5.6bn, while imports from Nigeria increased by 8.2% to £2.3bn, bringing total bilateral trade in goods and services to £8bn, up 11.1% year-on-year.
“Total trade in goods and services between the UK and Nigeria was £8.0bn in the four quarters to the end of Q2 2025, an increase of £793m from the previous year,” the report said.
Key Export Drivers
Refined oil remained the dominant export, followed by toilet and cleansing preparations (£55.8m), industrial machinery (£42.7m), textile fabrics (£40.1m), and mechanical power generators (£35.1m).
Industrial machinery exports grew 36.4%, cleansing products rose 26.5%, textile fabrics increased 14.5%, and generators were up 8.7%
Goods exports accounted for £2.2bn, about 38.4% of total UK exports, while services made up £3.5bn. Although goods exports surged 43.5%, services exports fell slightly by 1.1%
Nigeria’s exports to the UK were dominated by crude oil (£1.3bn, 73.1%), followed by refined oil (£223.8m) and gas (£167.8m). Gas exports surged 75 per cent, while refined oil rose 62.6%, and crude oil grew 7.9%.
Other exports included beverages and tobacco (£14.6m) and plastics (£12.8m).
Dangote Refinery Boosts Refined Oil Supply
The Dangote Petroleum Refinery, designed to process 650,000 barrels of crude daily and planning to double output, is helping Nigeria shift towards exporting refined products rather than crude.
The UK recorded a trade surplus of £3.3bn with Nigeria, up from £2.8bn the previous year. The goods surplus widened to £441m, while the services surplus remained £2.8bn.
Despite trade growth, investment flows weakened, with UK foreign direct investment in Nigeria falling 24.7% to £385m, and Nigeria’s investment in the UK declining 41.2% to £489m.
Impact of Nigeria’s 15% Import Levy
Nigeria’s recent 15% levy on imported petrol and diesel, approved by President Bola Tinubu, is expected to reduce refined oil imports.
By raising the landed cost of foreign fuel by about N99.72 per litre, the policy will protect local refining capacity, particularly the Dangote Refinery.
The levy may initially raise pump prices but could stabilise supply and strengthen the domestic refining sector over time, though some argue it risks increasing economic pressure on Nigerians.
Could the UK–Nigeria trade balance shift further as local refining expands and import tariffs take effect?
Rate, Like 👍, Comment 💬, Share this article, Follow us on our social media handles, and Submit your own story to get featured and earn rewards!
WhatsApp Channel
Telegram Channel
