Nigeria’s trade relationship with the United States took a dramatic turn in the first quarter of 2026 as exports to the American market plunged by N365.64 billion, even as imports from the US nearly doubled. New figures from the National Bureau of Statistics revealed that Nigerian exports to the US dropped by 23.69 percent year-on-year to N1.18 trillion, down from N1.54 trillion recorded during the same period in 2025. The sharp decline signals weakening demand for Nigerian goods in one of the country’s most important export destinations.
While exports struggled, imports from the United States surged by an astonishing 97.33 percent, rising to N2.81 trillion from N1.42 trillion a year earlier. The increase means Nigeria imported more than twice the value of goods it exported to the US, resulting in a trade deficit of approximately N1.63 trillion. Despite an overall reduction in Nigeria’s total import bill during the quarter, American products continued to gain significant ground in the local market, making the US the country’s second-largest source of imports after China.
The growing imbalance comes against the backdrop of changing US trade policies. Last year, the United States increased tariffs on several Nigerian exports under President Donald Trump’s reciprocal tariff framework. Although crude oil remains largely exempt, higher duties on non-oil products have created uncertainty for Nigerian exporters and reduced competitiveness in the American market. Analysts believe these measures may be contributing to the decline in export volumes and shrinking trade advantages previously enjoyed by Nigeria.
Despite the setback with the United States, Nigeria’s overall trade performance remained positive. The country recorded total exports worth N21.17 trillion in the first quarter of 2026, supported largely by strong crude oil sales. Crude oil alone accounted for more than half of total exports, while non-oil exports contributed N3.19 trillion. The nation also posted a trade surplus of N7.55 trillion as lower petroleum product imports helped strengthen the overall balance of trade.
Government officials, however, remain focused on reducing dependence on a single market. Minister of Industry, Trade and Investment, Jumoke Oduwole, said Nigeria would continue expanding trade opportunities across Africa, Asia, and other emerging markets rather than pursuing retaliatory measures. Economists have also urged the country to view the evolving global trade landscape as an opportunity to diversify exports, strengthen regional partnerships, and build resilience against external policy shifts. As trade dynamics continue to evolve, the widening Nigeria-US trade deficit highlights the growing urgency for export diversification and broader market access for Nigerian businesses.
source: punch
