Crude Oil Exports to US from Nigeria Drop, as Imports from America Rise

By Adedapo Adesanya

Latest data from the US Energy Information Administration (EIA) has shown that gross exports of crude from the United States to Nigeria stood at 111,000 barrels per day in February and 169,000 barrels per day in March.

However, imports from Nigeria to US, which were at 133,000 barrels per day in January, dropped to 54,000 barrels per day in February and 72,000 barrels per day in March.

According to Reuters, this is the first time the US has exported more crude oil to Nigeria than it imported. Nigeria is generally considered a source for US crude oil imports, ranking ninth last year.

The US became a net exporter of crude oil to Nigeria in February and March, as crude demand on the US East Coast slowed due to refinery maintenance and the Dangote refinery drove up Nigeria’s demand for inputs, the agency said in a note on Tuesday.

There were indications that the crude stock went to Dangote oil refinery, the largest in Africa, located on the outskirts of Lagos in Nigeria.

The $20 billion structure began processing crude in January 2024 after years of delays.

The refinery is set to reach full capacity of 650,000 barrels per day this year, according to the EIA.

However, Dangote Refinery is expected to rely totally on Nigerian crude by the end of the year; possibly halting any need for US crude.

Earlier this month, Dangote Industries Limited revealed that it expects Africa’s biggest refinery to rely solely on crude sourced exclusively locally.

This development would replace hundreds of thousands of barrels a day of imported oil from the US, Angola, Brazil, and Algeria among others. It is also expected to ease foreign exchange dependence for imports.

According to Mr Devakumar Edwin, vice president at Dangote Industries, the facility received about half of its crude in June from local producers who will be able to sell more to the facility as their foreign supply obligations end.