Trump’s Energy Move Slashes Nigeria’s Oil Prospects

• As global oil prices fall, Trump’s planned energy policies could reduce Nigeria’s oil revenue.
• U.S. oil imports from Nigeria, valued at $4.73 billion in 2023, may decline further with Trump’s focus on boosting domestic production.
• PETROAN secured fuel supply agreements with Dangote Refinery and NNPC to ensure a stable petrol supply during the festive season.

U.S. President Donald Trump plans to issue an executive order and declare a national energy emergency to boost domestic oil production, which could hurt Nigeria’s oil revenue. Global oil prices, including Nigeria’s Bonny Light, dropped to $80 per barrel from $83.

According to a Vanguard Newspaper report, traders await Trump’s energy policy details after his inauguration, hoping for market clarity. The U.S. once imported large amounts of Nigerian crude oil, but shale oil and government policies drastically reduced those imports. The U.S. imported $4.73 billion worth of oil from Nigeria in 2023 despite this.

Energy experts predict further drops in Nigeria’s oil revenue in 2025 if Trump’s policy increases U.S. oil production. Dr Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), explained that higher U.S. production would raise global supply, pushing prices down.

“If oil prices fall, Nigeria’s revenue will decline, but businesses could benefit from cheaper fuel,” Yusuf said. He noted that lower prices would reduce the cost of petroleum products like petrol and diesel, helping businesses but hurting government earnings.

Yusuf also suggested that Trump could ease the Russia-Ukraine conflict, further affecting global oil markets. “If Trump lifts sanctions on Russia and increases oil production, prices will drop again. This will reduce Nigeria’s revenue but lower energy costs for businesses,” he said.

Energy analyst Dr Bala Zakka believes Trump’s policies will push Nigeria to refine more oil locally. “Trump’s plan to cut U.S. oil imports might force Nigeria to boost its refining capacity, adding more value to our economy,” Zakka said.

The National President of the Oil and Gas Service Providers Association of Nigeria (OGSPAN) urged Nigeria to reduce its reliance on oil exports and diversify its economy. “Every country adjusts its policies to grow its economy. Nigeria must follow this path,” he said.

In other developments, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) guaranteed that petrol supplies would remain stable during the festive season. PETROAN reached a new supply agreement with Dangote Refinery and NNPC Limited’s Port Harcourt refinery to ensure fuel availability.

Dr Joseph Obele, PETROAN’s National Public Relations Officer, outlined a plan to prevent fuel shortages. “Nigerians can travel easily during the holidays without worrying about fuel scarcity,” Obele said.

Following a successful business meeting between PETROAN and Dangote Refinery management, both parties agreed on strategies to maintain fuel availability throughout the season. PETROAN President Dr Billy Gillis-Harry praised Dangote Group’s Vice President, Devakumar V. G. Edwin, for ensuring petroleum products will reach Nigerians.

The agreement aims to avert fuel shortages and ensure smooth travel during the year-end festivities.