For the first time in history, Nigeria imported more crude oil from the United States than it exported, reversing the longstanding oil trade relationship between the two nations. This significant development, which occurred in February and March 2025, reflects both domestic energy shifts in Nigeria and changing refinery demands in the U.S., according to data from the U.S. Energy Information Administration (EIA).
The shift is primarily attributed to increased demand from Nigeria’s newly operational Dangote Refinery, which began processing oil in January 2024. The refinery, located near Lagos and touted as the world’s largest single-train facility, is central to Nigeria’s strategy to reduce dependence on imported refined fuels. Once at full capacity, the refinery is expected to process 650,000 barrels per day, drastically altering regional and international oil flows.
Data from the EIA shows that U.S. crude exports to Nigeria rose to 111,000 barrels per day in February and 169,000 in March, while imports from Nigeria dropped significantly to 54,000 and 72,000 barrels per day, respectively. This reversal was also influenced by maintenance at the Bayway Refinery in New Jersey, temporarily curbing U.S. demand for Nigerian crude. However, the trend is not expected to be permanent as market dynamics continue to shift.
Aliko Dangote, speaking at a regional fuel conference, confirmed that his refinery sources up to 10 million barrels of crude monthly from the U.S. and other suppliers. He pointed out a paradox: some of the crude originates from Nigeria, sold at a premium to traders, then re-imported at higher costs. This inefficiency, he argued, reflects Africa’s dependence on foreign refining and the urgent need for localized energy solutions.
Analysts like Eli Tesfaye suggest that while this reversal is notable, it likely represents a temporary market shift rather than a lasting trend. Nonetheless, it underscores the growing influence of domestic infrastructure on global oil trade and the importance of refining capacity in shaping energy independence. Dangote emphasized that Africa must embrace efficient trade policies, improve product quality, and invest in domestic value chains to reclaim lost economic opportunities.
Source: Nairametrics