U.S tops Nigeria’s oil market with N3.6trn purchase in 2024

• Top 10 importers buy N24.2trn Nigerian oil 

Onome Amuge

The United States has risen to the forefront of Nigeria’s energy export market, unseating The Netherlands as the dominant buyer of Nigerian crude oil in 2024, , as the top ten importers of Nigerian crude accounted for N24.2 trillion worth of the commodity.

Data from the National Bureau of Statistics (NBS) showed the U.S bought Nigerian crude oil worth N3.64 trillion in the first nine months of 2024 as Nigeria continued to solidify its position as a leading crude oil exporter in Africa, with its high-quality oil attracting international buyers despite the volatility of oil prices and evolving energy policies.

Though the United States has significantly reduced its reliance on imported oil as a result of increased domestic production, it remains a crucial market for Nigerian crude oil, especially for Gulf Coast refineries that are configured to process light crude oil.  Reports show that Nigeria’s light crude oil production matches the requirements of these refineries, making them natural buyers of Nigerian crude even as the US’ overall import demand decreases.

France, buoyed by its need for oil that is compatible with its refining infrastructure and its lower carbon footprint, has remained one of the largest importers of Nigerian crude oil, placing second in terms of total value of crude oil imports in the period under review, with a total of N3.34 trillion worth of the commodity imported.

Spain increased its imports of Nigerian oil, driven by the European Union’s diversification strategy that aims to reduce dependence on Middle Eastern oil supplies. This increase saw Spain import N3.02 trillion worth of Nigerian oil, making it the third largest importer.

Despite ceding its top spot as the largest importer of Nigerian crude oil, the Netherlands managed to increase the value of its imports from N1.5 trillion in the first nine months of 2023 to N2.77 trillion in the same period of 2024. Even with the reduced relative share of Nigerian crude in its import mix, the European country, now the fourth largest importer,  retained its importance as a refining and distribution hub for Nigerian oil

Italian refineries ramped up their imports of Nigerian crude in order to produce high-value refined products such as gasoline and diesel, which are in high demand in European markets. This increase resulted in Italy becoming the fifth largest importer of Nigerian crude with a total value of N2.64 trillion in the first nine months of 2024.

Canada also emerged as a key player in the Nigerian crude oil trade, becoming the sixth largest importer with a purchase value of N2.56 trillion, making it an important North American partner for Nigeria’s energy sector.

Indonesia, seeking to meet its industrial and energy needs with the light characteristics of Nigerian crude, emerged as a significant importer of Nigerian crude oil, becoming the seventh largest buyer during the first nine months of 2024 with a purchase value of N2.02 trillion.

India, renowned for its heavy reliance on Nigerian crude for its expanding industrial sector and refineries that prefer light, sweet crude, maintained its strong demand and emerged as the eighth largest buyer in the reviewed period, importing N1.57 trillion worth of Nigerian crude oil.

Ivory Coast, demonstrating the importance of regional trade within West Africa, emerged as the largest African importer of Nigerian crude, matching India’s import value of N1.57 trillion.

Meanwhile, the United Kingdom affirmed its economic ties with Nigeria by importing N1.07 trillion worth of Nigerian crude, securing the final position in the list of top 10 importers.

The superior quality of Nigerian crude oil, classified as “light” and “sweet” due to its low sulfur content, is reported as the key factor driving its popularity among countries. This low sulfur content makes Nigerian crude easier and less expensive to refine, a significant advantage in the face of increasingly stringent environmental standards.

Data from S&P Global corroborates the desirability of low-sulfur crude like Nigeria’s, which produces higher yields of desirable refined products such as gasoline, diesel, and jet fuel, at lower production costs. These attributes ensure Nigerian crude’s competitiveness and solid position in global energy markets.