Nigeria’s Oil Export Threatened as Trump Plans to Increase US Production amid Rise in Prices
- President Donald Trump’s planned executive order on oil and gas production could affect Nigeria’s export
- Details emerged on Monday, January 20, 2025, showing the decline in crude oil prices from $83 to $80 per barrel
- The US is a top buyer of Nigeria’s crude oil, with purchases hitting $4.73 billion in 2023, up from $4.02 billion the year before
Don't miss out! Join Legit.ng's Sports News channel on WhatsApp now!
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
President Donald Trump has planned an executive order and a declaration of an energy emergency to boost US oil and gas production, which could negatively impact Nigeria’s demand and revenue.
The development comes as oil prices declined to $80 per barrel from $83 per barrel on Monday, January 20, 2025, as traders anticipated Donald Trump's clarification of his agenda.
US tops the list of oil buyers from Nigeria
The US is a bulk buyer of Nigeria’s oil, as data shows that the country led the list of top buyers in 2024.
Other top buyers of Nigeria’s oil include France, Spain, The Netherlands, Italy, Canada, Indonesia, India, Ivory Coast and the United Kingdom.
Analysts say the planned executive order could severely impact Nigeria’s revenue and oil production.
According to reports, US oil and gas imports from Nigeria stood at $4.73 billion in 2023, up from $4.02 billion the year before.
Trump planned production increase to affect Nigeria
Experts say the planned production increase could cut Nigeria’s oil export to the US and impact Nigerua’s 2025 crude oil production target.
Meanwhile, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained how the Nigerian government got foreign investors to increase oil production to 1.8 million barrels daily.
The minister narrated that from one million barrels per day in 2023, Nigeria’s oil output now stands at 1.8 million.
How Tinubu’s directive boosts oil production
The minister disclosed in a statement on Monday, January 6, 2024, that the presidential order to increase oil production to a sustainable level began the journey of transformation in the oil industry.
He disclosed that President Bola Tinubu’s directive became the cornerstone of his commitment to achieving the feat.
Lokpobiri stressed that he and his team embraced the directive by engaging stakeholders at home and abroad.
Nigeria ramps up oil production to 1.8mbpd
According to the oil minister, from one million barrels per day, the country has boosted output to 1.8 million, including condensate, and continues to aspire for more production.
Punch reports that the minister listed sitting at the Africa Energy Bank in Nigeria as one of his achievements.
He revealed that his achievements include attracting foreign investment decisions, winning the African Energy Bank bid, sustaining peace in host communities via robust engagement, and deregulating downstream sectors.
He also said his ministry has eliminated bureaucratic hurdles, facilitated capacity building for local players and introduced several reforms.
Rwanda discovers first oil in large quantity
Legit.ng previously reported that Rwanda disclosed that on Wednesday, January 15, 2025, it had discovered its first oil, with 13 reservoirs in Lake Kivu bordering DR Congo.
Francis Kamanzi, CEO of Rwanda Mines, Petroleum and Gas Board, confirmed the development to parliamentarians, saying that the good news is that the country now has oil.
Local media stated that Kamanzi disclosed that 13 wells in Lake Kivu confirmed the presence of oil.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng