US Demand for Nigerian Goods Falls as Trade Deficit Hits N1.63 Trillion in Q1 2026

Nigeria’s trade relationship with the United States took a significant turn in the first quarter of 2026, as demand for Nigerian goods in the American market declined sharply while imports from the US surged. New figures released by the National Bureau of Statistics (NBS) show that Nigeria exported goods worth N1.18 trillion to the United States during the quarter, representing a 23.69% decline from the N1.54 trillion recorded in the same period of 2025. The drop translates to a loss of N365.64 billion in export earnings, raising concerns about Nigeria’s competitiveness in one of its key international markets.

At the same time, imports from the United States almost doubled, climbing by 97.33% year-on-year to N2.81 trillion from N1.42 trillion. This sharp increase widened Nigeria’s trade deficit with the US to approximately N1.63 trillion, a dramatic reversal from the N122 billion trade surplus recorded in the first quarter of 2025. The latest figures highlight a growing imbalance in bilateral trade, with Nigeria spending significantly more on American goods than it earns from exports to the country.

The surge in imports is particularly notable because it occurred during a period when Nigeria’s overall import bill declined. Total imports into the country fell by 18.17% year-on-year to N13.62 trillion, yet demand for American products remained strong. As a result, the United States emerged as Nigeria’s second-largest source of imports after China, accounting for 20.6% of total imports, while China maintained its lead with a 37.42% share.

Although Nigerian exports to the United States recorded a quarter-on-quarter rebound of 31.6% from N895.06 billion in the previous quarter, the recovery was not enough to offset the annual decline. The US remained Nigeria’s fifth-largest export destination, contributing 5.56% of total exports, behind major markets such as India, France, the Netherlands and Spain. Overall trade between both countries reached N3.98 trillion during the quarter, underscoring the continued importance of the economic relationship despite the widening trade gap.

Analysts believe the trend may be linked to evolving US trade policies under President Donald Trump, particularly the implementation of a reciprocal tariff regime that increased tariffs on many Nigerian exports from 14% to 15%. While crude oil exports were largely exempted, the higher duties on several non-oil products may have discouraged American buyers and reduced demand for Nigerian goods. However, experts at Afreximbank Research argue that Africa’s growing trade ties with China could help cushion the continent from the broader effects of US protectionist policies. Nigerian officials, including Minister of Industry, Trade and Investment Jumoke Oduwole, have also expressed confidence that the country can navigate the changing global trade landscape despite mounting challenges.

source: nairametrics