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Economy

Nigeria Dominates US Crude Imports Despite Export Decline

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Nigeria

Nigeria US crude exports accounted for 52% of Africa’s oil shipments to the US in 2025 despite declining volumes, new trade data show

Nigeria accounted for more than half of Africa’s crude oil exports to the United States in 2025 despite declining shipment volumes, according to newly released trade figures from the United States Census Bureau.

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Also read: Nigeria to Export New Cawthorne Crude in March

Data contained in the US International Trade in Goods and Services report showed that Nigeria US crude exports totalled 46.618 million barrels during the year, representing 52.2 per cent of all crude oil imported by the United States from Africa.

The figures indicate that total US crude imports from the continent fell to 89.371 million barrels in 2025 from 103.631 million barrels recorded in 2024, marking a sharp decline of 13.8 per cent.

Although Nigeria’s export volume dropped by 4.175 million barrels year on year, the country strengthened its market dominance as competing African suppliers recorded steeper reductions in shipments to the American market.

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In value terms, Africa’s crude exports to the United States declined significantly. The continent’s Cost, Insurance and Freight value fell from 8.945 billion dollars in 2024 to 6.816 billion dollars in 2025, reflecting weaker global demand dynamics and price adjustments.

Nigeria’s export value also decreased from 4.458 billion dollars to 3.545 billion dollars within the same period. Despite the fall, Nigeria maintained a commanding 52.0 per cent share of Africa’s total crude export value to the United States.

Customs value data, which exclude freight and insurance costs, followed a similar trend. Africa’s customs value dropped by over 24 per cent, while Nigeria recorded a 20.9 per cent decline, underscoring broader pressures within global energy trade flows rather than country-specific disruptions.

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A comparative breakdown showed that Angola’s exports to the United States fell dramatically from 18.497 million barrels in 2024 to 8.891 million barrels in 2025.

Ghana also recorded a steep contraction, while Libya emerged as the only major African supplier to post a marginal increase in export volumes.

Analysts note that Nigeria’s improved share of the US market was driven less by expansion and more by relative resilience amid declining continental supply.

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The trade outcome coincided with renewed protectionist rhetoric under United States President Donald Trump, whose administration introduced a reciprocal tariff regime in 2025 that raised Nigeria’s tariff rate from 14 per cent to 15 per cent on several non-oil exports.

While crude oil shipments largely remained exempt from the tariff adjustments, uncertainty surrounding broader trade relations contributed to softer demand for Nigerian non-oil goods.

Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, downplayed the economic impact of the tariff changes, noting that Nigeria’s trade exposure to the United States remains limited and heavily concentrated in crude oil exports.

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Dr Yusuf argued that structural constraints, particularly restrictive visa policies affecting business travel and investment engagement, pose a more serious long-term challenge to bilateral trade relations than tariff measures.

Also read: Nigeria Earns Strong N55.5tn from Crude Oil Sales in 2025

The latest data highlight Nigeria’s enduring strategic position in transatlantic energy supply chains, even as shifting global demand patterns and evolving trade policies continue to reshape oil market dynamics.

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Economy

NRS Assures Taxpayers VAT Remains at 7.5% Amid Tax Reform Concerns

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NRS

NRS VAT rate remains 7.5%, the agency says, while addressing concerns over bank deductions, loans and the implementation of Nigeria’s tax reforms

The Nigeria Revenue Service (NRS) has assured taxpayers that Nigeria’s standard Value Added Tax (VAT) rate remains 7.5 per cent, while addressing concerns over the implementation of the country’s new tax reforms.

Also read: Wike Celebrates Fintiri at 59, Hails Him as Loyal Friend

The assurance was given by the Tax Administrator responsible for Kano, Jigawa and Katsina states, Samaila Abdullahi, during an NRS stakeholders’ engagement and tax reform sensitisation programme in Kano.

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Abdullahi said concerns raised by individuals, traders, business owners and other stakeholders about the new tax laws were understandable, particularly questions relating to bank transactions, loans, family transfers, business income and the potential impact on small businesses.

He urged taxpayers to understand the reforms through the provisions of the law rather than rely on assumptions or misinformation.

According to him, the tax laws do not automatically authorise deductions from personal bank accounts.

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He stressed that tax collection and recovery must follow the applicable legal provisions and procedures.

Abdullahi also clarified that money received as a loan should not automatically be classified as business income or profit, explaining that proper documentation is essential to establish the nature of a transaction.

“For instance, when a trader receives a loan of N500,000, the amount should not automatically be treated as N500,000 in sales or profit, provided the transaction is properly documented,” he said.

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The NRS official’s comments were aimed at addressing public concerns about how the new tax framework would affect personal finances and business transactions.

He emphasised the importance of distinguishing between taxable business receipts and other funds, such as documented loans, when determining a taxpayer’s obligations.

The clarification comes amid heightened public interest in Nigeria’s tax reforms and questions about their implications for individuals, traders and small businesses.

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Also read: Wike Celebrates Fintiri at 59, Hails Him as Loyal Friend

The NRS urged taxpayers to rely on the provisions of the law and official explanations when assessing their obligations under the new framework.

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