Nigeria’s Exports to US Plummet by $527m
The trade relationship between the United States and Nigeria has suffered a significant setback, as official data from the US Census Bureau and the Bureau of Economic Analysis show that US imports of Nigerian goods decreased by $527m in the first five months of 2025 compared to the same period in 2024.
This represents a nearly 20 per cent year-on-year decline amid recent bilateral trade tensions between the two nations. In the corresponding period of 2024, the U.S. imported goods worth $2.65bn from Nigeria.
That figure fell sharply to $2.12bn between January and May 2025. The decline comes amid a wave of renewed protectionist measures spearheaded by US President Donald Trump, who signed an executive order on April 2, 2025, introducing a general 10 per cent import tariff on most countries.
Under this policy, known as the “Liberation Day” tariff framework, Nigeria was targeted with a higher tariff rate of 14 per cent due to its previous trade surplus with the US. Although Nigeria remains one of the US’s largest African trade partners, the impact of Trump’s renewed trade policy agenda is being felt.
Further pressure mounted when Trump threatened an additional 10 per cent tariff on countries seen to be aligning with the BRICS economic bloc, which includes Nigeria as a potential new member. The imposition of these tariffs appears to have discouraged US purchases of Nigerian products.
However, it is important to note that energy-related products, including crude oil — Nigeria’s main export — were explicitly exempted from these tariffs. Despite this exemption, the overall decline in Nigerian exports to the US indicates a broader slowdown, not limited to oil.
Other Nigerian exports, including agricultural and manufactured goods, have been affected by the uncertainty generated by the new trade policy. This shift is evident in the trade data, which shows that US imports from Nigeria in May 2025 stood at $400m, a sharp drop from $517m recorded in May 2024.
More importantly, even oil shipments, though not subject to the tariff, have shown signs of weakening, possibly due to market dynamics and shifting US sourcing strategies. Data from the first five months of 2025 show that the US imported 17.39m barrels of Nigerian crude oil, valued at $1.34bn based on customs value.
This marked a drop from the 20.4m barrels worth about $1.52bn imported during the same period in 2024. The decline in volume suggests a shift in US sourcing, perhaps reflecting competition from other producers or strategic reserve adjustments.
Despite the drop, Nigeria remained the largest supplier of crude oil to the US from Africa, ahead of Libya, Angola, and Ghana. In May 2025 alone, the US imported over 4.2m barrels of Nigerian crude, valued at $311m, down from $368m in April.
However, crude oil imports from Nigeria alone accounted for over 62 per cent of total US crude purchases from Africa in the first five months of 2025. By value, Nigeria’s oil exports to the US stood at $1.34bn (customs value) and $1.38bn (C.I.F. value), reflecting its central role in energy trade, even if overall exports have declined.
The rest of Africa contributed $811m in crude oil exports in the same period, with Libya, Angola, and Ghana trailing far behind Nigeria in both volume and value.
Yet, energy dominance is not translating into broader trade leverage for Nigeria. The limited diversification of its export basket, coupled with structural constraints such as port inefficiencies, regulatory bottlenecks, and weak industrial capacity, has curtailed Nigeria’s ability to expand beyond crude.
It was further observed that US exports to Nigeria increased significantly from $2.05bn in the first five months of 2024 to $2.42bn in the same period of 2025. This 17.8 per cent growth in US exports, combined with the fall in imports, led to a complete reversal in the trade balance between both countries.
It is important to note that the US also maintains a strong export relationship with Nigeria in the automobile sector. Data show that in the first five months of 2025, the US exported $426m worth of motor vehicles and parts to Nigeria.
This included $312m worth of passenger cars, $29m worth of trucks and buses, and $86m in parts. The sector alone accounted for nearly 18 per cent of total US exports to Nigeria, highlighting the importance of the Nigerian consumer market for American manufacturers.
In May 2025, the US shipped $95m worth of motor vehicles and parts to Nigeria, slightly lower than the $100m recorded in April but still indicative of consistent demand.
The breakdown shows $70m in passenger cars, $7m in trucks and buses, and $19m in parts. These figures highlight the continued appetite for imported vehicles in Nigeria.
Furthermore, while the US had a trade deficit of $596m with Nigeria in the first five months of 2024—meaning Nigeria exported more to the US than it imported—that position flipped in 2025.
By the end of May 2025, the US held a $295m surplus over Nigeria. This swing in trade balance marks a turning point in US–Nigeria trade relations, as Nigeria transitioned from a net exporter to a net importer in the bilateral context.
The monthly trend confirms this reversal. In May 2025 alone, the US exported $515m in goods to Nigeria while importing just $400m, giving the US a surplus of $115m for the month. This is in contrast to May 2024, when the US posted a deficit with Nigeria, importing more than it sold.
Nigeria’s position in the broader context of US–Africa trade also appears to be under pressure. In terms of exports, Nigeria accounted for roughly 14.8 per cent of total US goods exported to Africa between January and May 2025, down slightly from its share the previous year.
On the import side, Nigeria represented about 10.8 per cent of US imports from Africa. Although Nigeria remains among the top three African trading partners of the US, its influence is diminishing as other nations like Egypt and South Africa strengthen their trade flows with Washington.
The United States’ leading African export destination, with US exports to Egypt hitting $3.43bn in the first five months of 2025, up from $1.95bn in the same period of 2024.
This dramatic increase highlights Egypt’s growing role in Africa–US economic relations. Meanwhile, South Africa continues to dominate US imports from the continent. The US imported $8.67bn worth of goods from South Africa between January and May 2025—more than four times what it imported from Nigeria—while exporting just $2.71bn to that country.
In comparison, Nigeria’s total trade volume with the US now stands at approximately $4.54bn for the year-to-date period, falling behind both Egypt and South Africa. The slower growth in non-oil trade suggests that Nigeria is struggling to retain its position as a top-tier economic partner of the United States.
SOURCE: The PUNCH