KEY POINTS
- US oil exports to Nigeria fell for a fifth month.
- Nigeria’s oil production hit the highest level in 2025.
- Dangote Refinery is reshaping crude import demand.
US crude shipments to Nigeria and other African countries slid for the fifth straight month in July, dropping to 3.3 million barrels a day the lowest level in more than three years.
The Organisation of Petroleum Exporting Countries (OPEC) disclosed the figures in its August oil market report, attributing the decline to reduced flows to both Europe and Africa, with Nigeria taking a notable hit.
Nigeria’s rising crude production eases reliance on US oil exports
Nigeria’s oil production climbed to its highest monthly level in 2025, helping to offset falling US supply. According to OPEC, the country pumped 1.559 million barrels per day in July, an 11 percent increase from a year earlier. The jump follows output gains driven by improved operations and security along production corridors.
Dangote refinery reshapes local oil demand
The commissioning of the 650,000-barrel-a-day Dangote Petroleum Refinery has started to transform Nigeria’s crude market. With the refinery gradually ramping up, domestic demand for imported crude, including shipments from the US, has slowed sharply. Vanguard’s checks suggest crude imports are already shrinking as local refining capacity grows.
NUPRC targets sustainable output growth
Nigeria’s oil regulator, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), confirmed output topped 1.8 million barrels a day last month, marking the strongest production in recent years.
Commission Chief Executive Gbenga Komolafe credited the milestone to a multi-stakeholder approach under the “Project 1 MMBOPD Incremental Initiative.” He added that Nigeria is refining its Maximum Efficient Rate framework to reduce disruptions while keeping pace with the presidential target of higher sustainable production.
