Nigeria imported about 61.7 million barrels of crude oil from the United States between January 2024 and January 2026, underscoring the country’s growing rel iance on foreign feedstock to support domestic refining despite being a major oil producer.

This is despite the fact that Nigeria exported over 300 million barrels of crude in the first 10 months of 2025 and 55.39 million barrels in January and February 2026.

Data obtained from the US Energy Information Administration showed that crude exports from the United States to Nigeria surged during the period, marking a sharp reversal from nearly a decade of negligible crude trade flows between both countries.

Before 2024, American crude shipments to Nigeria were virtually non-existent. The only notable supply recorded within the period was in March 2016, when exports averaged just 19,000 barrels per day, translating to about 0.589 million barrels for the entire year.

However, the trade pattern changed significantly in 2024, coinciding with the commencement of operations at the Dangote refinery, which industry observers said has emerged as the primary buyer of US crude to supplement domestic supply constraints.

The EIA reports its data in thousands of barrels per day, meaning the daily figures must be multiplied by the number of days in each month to derive the total monthly volume.

For 2024, data available for January to June indicated that Nigeria imported a total of 15.701 million barrels from the United States within six months. In January, imports averaged 125,000 barrels per day, translating to 3.87 million barrels. February recorded 110,000 barrels per day or 3.19 million barrels, while March fell to 51,000 barrels per day, amounting to 1.58 million barrels.

Imports rose again in April to 67,000 barrels per day, representing 2.01 million barrels, before dropping to 35,000 barrels per day in May, equivalent to 1.08 million barrels. June recorded the highest inflow for the year at 132,000 barrels per day, which translated to 3.96 million barrels.

The volume increased further in 2025, which accounted for the largest share of the two-year imports. Between February and December 2025, Nigeria imported 41.06 million barrels of US crude.

According to the EIA, the year started with 111,000 barrels per day in February and climbed steadily in the following months.

Imports peaked in June 2025 at 305,000 barrels per day, the highest monthly rate in the dataset, delivering about 9.15 million barrels within 30 days. Another strong inflow was recorded in August at 201,000 barrels per day, equivalent to 6.23 million barrels.

However, the supply slowed sharply towards the end of the year. Imports dropped to 12,000 barrels per day in November, translating to just 0.36 million barrels, before slightly rising to 23,000 barrels per day or 0.71 million barrels in December.

For 2026, data available for January showed that Nigeria imported 159,000 barrels per day, amounting to 4.93 million barrels.

A breakdown of the figures showed that the combined total for 2024, 2025 and January 2026 stood at 61.685 million barrels, which rounds up to 61.7 million barrels.

The development highlights a paradox in Nigeria’s oil sector, where the country exports large volumes of crude oil but still struggles to supply enough feedstock to domestic refineries.

For decades, Nigeria relied heavily on importing refined petroleum products such as petrol and diesel due to limited refining capacity. The commissioning of the Dangote refinery in 2024 shifted the pattern, with the country now importing crude oil for local processing instead of finished fuels.

Aliko Dangote once said the imports from the United States were largely driven by the need to bridge the gap between domestic crude supply and the refinery’s operational requirements.

The Dangote facility, one of the world’s largest single-train refineries, requires substantial daily feedstock to run at optimal capacity, needing over 19 million barrels monthly.

Sources told our correspondent that the Dangote refinery imports crude from Ghana and other African countries even as the country sells crude to other countries.

Data from the Central Bank of Nigeria showed that Nigeria exported an estimated 306.7 million barrels of crude oil between January and October 2025, despite concerns over feedstock shortages faced by domestic refineries.

The figures indicated that while the country produced about 443.5 million barrels during the 10-month period, averaging roughly 1.45 million barrels per day, a significant portion of the output was shipped overseas.

Cumulatively, exports between January and October represented about 69 per cent of total production, leaving roughly 137 million barrels for domestic use.

Similarly, Nigeria exported 55.39 million barrels of crude oil in the first two months of 2026 even as the Dangote refinery continues to struggle with inadequate domestic feedstock supply.

According to CBN data, the country shipped out 31.31 million barrels in January and 24.08 million barrels in February.

In January, crude production averaged 1.46 million barrels per day with exports at 1.01 mbpd. In February, production fell to 1.31 mbpd while exports averaged 0.86 mbpd. Total crude production for the two months stood at 81.94 million barrels, meaning that 26.55 million barrels were left behind for local refineries in the first two months of 2026.

On several occasions, the Dangote refinery complained of low crude supply despite the naira-for-crude arrangement, forcing it to source feedstock from the United States and other countries, including Ghana.

Also, the Crude Oil Refiners Association of Nigeria lamented that some modular refineries under its umbrella shut down intermittently due to inadequate crude supply.

In a strategic move to curb rising food and fuel prices, the Central Bank of Nigeria has tightened its grip on the financial system, pushing the interbank deficit to N4.1tn. By vacuuming out excess liquidity through high-yield government bills, the CBN is betting that a short-term drought in the banking system is a necessary sacrifice to stabilise the naira and prevent inflation from spiralling out of control after its recent jump to 15.4 per cent.

According to the latest Afrinvest Weekly Market and Economic Analysis, the interbank system remains under immense pressure as the apex regulator prioritises the containment of resurgent inflation and exchange rate volatility.

The report reveals that system liquidity conditions, representing the volume of discretionary cash available for banks to lend to one another, remain deep in negative territory. While the average system deficit narrowed by 18.7 per cent to settle at N4.1tn, down from N5.0tn the previous week, the figures signal a deliberate drought orchestrated by the regulator to mop up excess money supply.

Mop-up operations

Analysts at Afrinvest noted that this persistent shortfall is not accidental but a core feature of the current fiscal defence strategy. “The persistent system liquidity shortfall reflects sustained monetary tightening by the CBN, driven by a combination of OMO-induced sterilisation and limited offsetting inflows,” the report stated.

To anchor inflation expectations and prevent excess naira from chasing limited foreign exchange, the CBN utilised Open Market Operations. By offering N600bn in high-yield OMO bills, the CBN effectively mopped up cash from the banking system, locking it away to prevent it from driving up general price levels.

Despite the cash scarcity, investor appetite remains voracious. The 140-day and seven-day bills saw massive oversubscriptions, with bid-to-cover ratios of 8.6x and 4.3x, respectively. “Investor demand was robust, underscoring continued appetite for high-yield government securities despite prevailing liquidity constraints,” the analysis added.

Liquidity divide, stability

A striking takeaway from the analysis is the growing liquidity segmentation within the Nigerian banking sector. This phenomenon occurs when a few large, cash-rich banks hold massive surpluses while smaller institutions struggle with deficits.

Instead of lending to their struggling peers in the interbank market, often due to heightened risk concerns, these surplus institutions are choosing to park their money back with the CBN.

The report highlighted that Standing Deposit Facility placements averaged N4.1tn, noting that “these placements highlight continued liquidity segmentation as surplus institutions maintained significant deposits at the CBN despite the broader system deficit.”

Surprisingly, despite the liquidity crunch, interbank funding rates remained stable. The Open Repo rate held steady at 22.0 per cent, while the Overnight rate moderated slightly to 22.3 per cent.

Analysts suggest this indicates that the market has fully priced in the CBN’s hawkish stance, meaning banks have already adjusted their operations to a high-interest-rate environment.

Inflationary pressures

Looking ahead, the forecast remains consistent as the tight grip is not expected to loosen soon. Experts expect “liquidity conditions to remain constrained in the near term, and funding rates are likely to remain elevated but stable”, anchored by the prevailing monetary policy.

This aggressive tightening comes at a pivotal moment for the national economy. After eleven months of cooling prices, Nigeria’s headline inflation rebounded to 15.4 per cent in March 2026. This spike was largely driven by a global energy shock that pushed crude oil prices above $100/bbl, leading to higher domestic fuel and logistics costs.

By keeping the interbank system thirsty for cash, the CBN aims to support the naira and control the Consumer Price Index. While the squeeze on liquidity raises the cost of funds for banks, the apex bank appears convinced that a short-term sting in interest rates is a necessary price to pay to avoid the long-term pain of runaway inflation.

The decision by Iran to reclose the Strait of Hormuz has dampened hopes that fuel prices would crash in Nigeria.

The Strait of Hormuz was opened on Friday following a ceasefire deal between Iran and the United States. But barely 24 hours later, Iran reclosed the strait, calling the decision a response to a continued blockade of its ports by the United States.

The Iranian military on Saturday said control of the strategic waterway, through which 20 per cent of globally traded oil transits, had “returned to its previous state”, with reports saying Iranian gunboats fired at a merchant vessel as it attempted to cross.

Fuel marketers had earlier projected that petrol prices could drop from the current N1,250 to about N900 when the strait was opened on Friday.

The spokesman of the Petroleum Products Retail Outlet Owners Association of Nigeria, Joseph Obele, said on Friday that the prices of crude oil had crashed following the reopening of the strait.

Obele recalled that petrol was around N800 before February 28, when the crisis started, expressing optimism that a sharp reduction should be expected if the development had been sustained.

“With the reopening of the Strait of Hormuz, Nigerians should expect a very significant reduction in petrol prices. Petrol will fall below N1,000 by next week, probably to N900 per litre. Don’t forget that the product was N800+ before the Middle East crisis. Now that the war is over, we should be expecting a return to that price regime,” he said on Friday.

But on Sunday, Obele told our correspondent that the reclosure of the Hormuz had dashed hopes of a price drop projection. Obele said the status quo would remain at the moment, pending when both Iran and the US agree on a lasting ceasefire.

President Donald Trump said Sunday that Iran had violated the ceasefire agreement with the US by attacking ships in the Strait of Hormuz, and he repeated threats to attack Iranian energy infrastructure unless it accepts a deal to end the war.

Our correspondent observed, however, that there has not been a major oil price surge since Saturday when the strait was reclosed by Iran. According to oilprice.com, Brent traded at $90 per barrel on Sunday, up from $88 before the Hormuz Strait reclosure. Recall that Brent was $95 as of Friday morning.

Meanwhile, US President Donald Trump said Sunday that Iran had violated the ceasefire agreement with the US by attacking ships in the Strait of Hormuz, as he repeated threats to attack Iranian energy infrastructure unless it accepts a deal to end the war.

“Iran decided to fire bullets yesterday in the Strait of Hormuz — a total violation of our ceasefire agreement!” he posted on Truth Social. “That wasn’t nice, was it?”

“We’re offering a very fair and reasonable deal, and I hope they take it because, if they don’t, the United States is going to knock out every single power plant and every single bridge in Iran,” he continued. “No more Mr Nice Guy!” he said.

Trump disclosed that negotiators would arrive on Monday evening in Islamabad, Pakistan, which last weekend hosted direct talks between the two sides, with the current two-week ceasefire set to end on Wednesday.

The reforms implemented by the Central Bank of Nigeria have helped cushion the impact of global economic shocks on Nigerians, preventing more severe hardship despite ongoing external pressures, the apex bank has said.

CBN Governor Olayemi Cardoso disclosed this at the final briefing of the bank during the just-concluded Spring Meetings of the World Bank/International Monetary Fund in Washington DC.

“The decisions of the MPC (Monetary Policy Committee), as we consistently emphasise, are data-driven. They are not based on emotion but on careful analysis of available information, and we respond accordingly. I am pleased that this cautious approach has proven justified by subsequent developments.

“I would also add that if we had not taken the steps we did at the time—and if the reforms had not been implemented when they were—the outcome for the country could have been far more difficult and painful,” Cardoso stated, while responding to a question on the March uptick in inflation.

On Friday, The PUNCH reported that Nigeria’s inflation rate rose to 15.38 per cent in March 2026, reversing the recent easing trend as global shocks from the US–Iran conflict pushed up energy, transport, and food costs. The PUNCH also observed that this is the first increase in headline inflation since March 2025.

Cardoso admitted that the recent National Bureau of Statistics report “showed an uptick in inflation, which, quite frankly, should not be too surprising given the global disruptions taking place at this time. Much of this increase can be attributed to global shocks.”

He noted that it was important to remind ourselves that, up to this point, the country had experienced consistent deceleration in inflation. “We had also begun the process of reducing rates, although we remained cautious. At the time, we were careful to avoid easing too early, as doing so could expose the economy to exactly the kind of shocks we are now witnessing—and that is precisely what has happened.

“There was an expectation that the central bank, given several months of deceleration, would adopt a more aggressive approach to reducing rates.

“However, this underscores an important point: members of the MPC have access to data and insights that are not always visible to the public. This situation clearly demonstrates why there was concern about potential shocks on the horizon. We wanted those uncertainties to clear before taking more decisive action.”

In direct response to the question on inflation, Cardoso insisted that the recent uptick was largely the result of global shocks. “Nonetheless, we remain committed to building resilience and staying the course on our long-standing objective of bringing inflation down to single digits,” he stated.

The CBN boss added, “Despite current challenges, we will maintain this focus because we believe it directly addresses the key concerns of Nigerians, particularly the real impact of macroeconomic developments on everyday life. Encouragingly, stability has begun to take hold, meaning that some of the negative consequences associated with instability can now be put behind us.”

Recall that both the Minister of Finance/Coordinating Minister for the Economy, Wale Edun, and the CBN governor, Cardoso, had earlier declared that Nigeria is currently in a sound position to withstand global economic shocks stemming from the Middle East crisis or other issues.

Both men took turns reiterating this position during a press briefing at the Spring Meetings of the World Bank and the International Monetary Fund in Washington, DC, United States.

Speaking at the briefing, Edun said, “Nigeria came to this meeting with a clear message: our reforms are durable, self-sustaining. We are more resilient to global shocks, and we are focused on inclusive growth.

“Due to the reforms undertaken under the leadership of His Excellency, Mr President, Nigeria is well-positioned to withstand external shocks, such as the one we are witnessing at this time.

“Across our engagements this week, there has been strong recognition and commendation that Nigeria’s reform programme is strengthening our economic fundamentals and restoring confidence. This has placed us in a stronger and better position to withstand the ongoing situation described as the Israeli–US–Iran conflict.

“With the economy now operating a market-reflective foreign exchange regime and market-based pricing for petroleum products, adjustments are occurring relatively smoothly—without distorted controls, unsustainable subsidies, or a rapid depletion of reserves, based on the data available to the Central Bank of Nigeria.”

Edun noted that this improved resilience was “widely acknowledged throughout the week at our various meetings, including at the International Monetary Fund, the World Bank, and in our engagements with other development partners and bilateral counterparts.”

The Manufacturers Association of Nigeria has urged the Federal Government to reject policy recommendations suggesting the reinstatement of petrol import licences, describing the proposal as flawed and harmful to Nigeria’s industrialisation drive.

The position follows the now-retracted recommendation by the World Bank in its April 2026 Nigeria Development Update. In a statement on Friday, Director-General of MAN, Segun Ajayi-Kadir, said the idea of reopening the country to petrol imports as a long-term solution to inflation was misguided.

“It is not, and should not be considered as an option. Suggesting that Nigeria should open its borders to imported Premium Motor Spirit to solve an inflationary crisis is structurally flawed, counterproductive, and highly detrimental to Nigeria’s industrialisation agenda,” Ajayi-Kadir said.

He warned that such a move would worsen Nigeria’s economic structure, noting that “in the long run, it will perpetually constrain Nigeria into the circle of exporting jobs and wealth, and importing poverty.”

MAN faulted the World Bank’s earlier position that suspending import licences reduced competition and contributed to rising fuel prices, arguing that the analysis ignored key macroeconomic realities.

Ajayi-Kadir said, “Promoting PMS imports means returning to the era of fiercely competing for scarce foreign exchange to fund foreign refineries. Such depletion of FX depreciates the naira further, and a weakened naira spikes the cost of importing critical raw materials and machinery for domestic manufacturers.”

He added that an increased reliance on imports would trigger broader inflationary pressures across sectors, extending beyond fuel pricing.

The MAN DG also warned that reinstating fuel importation would reverse gains recorded in Nigeria’s energy sector.

“For decades, Nigeria exported raw crude only to import refined products; effectively exporting our wealth, jobs, and capital to subsidise the manufacturing sectorsof Europe and Asia. Reverting to importation is to succumb to economic sabotage,” Ajayi-Kadir said.

On energy security, he stressed that dependence on imported fuel would expose the country to global shocks. “Relying on imported fuel exposes Nigeria to damaging external supply shocks. True and lasting price stability can only be achieved through local production, where internal supply buffers insulate the domestic market,” he noted.

Instead of fuel importation, MAN proposed a set of alternative measures to tackle inflation and stabilise the energy market. Ajayi-Kadir called for improved implementation of the naira-for-crude policy, saying, “The Federal Government should mandate total transparency in the domestic pricing matrix and ensure that local refineries receive their full, unhindered daily crude quotas.”

He also urged the government to accelerate the adoption of alternative energy sources, particularly compressed natural gas. “The government should accelerate the Presidential CNG Initiative by heavily subsidising the conversion of commercial and industrial transport fleets. Shifting from PMS and diesel to locally sourced CNG is the ultimate inflation-buster,” he said.

The association further advocated targeted support for manufacturers, including easing trade bottlenecks and providing affordable credit. “We should not expand trade deficits through petroleum imports; we should focus on removing supply-side bottlenecks for manufacturers,” Ajayi-Kadir added.

He also emphasised the need to invest in power infrastructure to reduce dependence on costly fuels for industrial production. Ajayi-Kadir reiterated that Nigeria must prioritise local production over import dependence.

“It is not in our national interest to perpetuate avoidable dependence on imported fuel when we have domestic capacity to meet demand. We must strive to produce what we consume and consume what we produce,” he said.

He warned the government against adopting policies that could undermine local industries. “We urge the Federal Government to be wary of neo-liberal prescriptions that could jeopardise our hard-won domestic manufacturing capabilities. The path to inclusive growth and a strong naira is surer when we protect our local industries,” Ajayi-Kadir stated.

The MAN DG concluded with a strong caution: “We should therefore reject any policy recommendation that would ultimately lead to the exportation of jobs and importation of poverty.”

The Central Bank of Nigeria (CBN), in collaboration with the Financial Markets Dealers Association (FMDA), has announced the introduction of the Nigerian Overnight Financing Rate (NOFR), a standardized benchmark aimed at enhancing transparency, strengthening monetary policy transmission, and deepening Nigeria’s money market.

The NOFR was developed to align Nigeria with global best practices in short-term interest rate benchmarks. It is expected to improve price discovery and transparency while promoting consistent pricing of money market instruments. It will enhance the

effectiveness of monetary policy, support financial innovation, boost investor

confidence, and strengthen risk management across the financial system.

The introduction of NOFR positions Nigeria alongside leading global benchmarks such as SOFR (United States), SONIA (United Kingdom), €STR (Eurozone), and TONA

(Japan).

It also complements African benchmarks such as JIBAR (South Africa).

Following a stakeholder engagement session held on February 27, 2026, where

market participants formally adopted the benchmark, and subsequent regulatory

approval, NOFR is now in use, with the CBN serving as the benchmark administrator.

The Bank will ensure governance, transparency, and regular publication of the rate.

 Nigerian Exchange Limited (NGX) announces the expansion of its trading hours from 9:00 a.m. to 4:00 p.m. (WAT), effective Monday, 27 April 2026, in a move designed to deepen market liquidity, enhance price discovery, and broaden investor access.

Approved by the Securities and Exchange Commission (SEC) Nigeria, the expansion shifts the market opening earlier from 9:30 a.m. to 9:00 a.m. and extends the close from 2:30 p.m. to 4:00 p.m., marking a significant evolution in the Exchange’s market structure.

The extended trading window will provide greater flexibility for investors, improve responsiveness to market-moving information, and support broader participation across the market. The development builds on the momentum of Nigeria’s recent reclassification to Frontier Market status by FTSE Russell, reinforcing NGX’s global positioning and enhancing its attractiveness to a broader pool of domestic and international investors.

This reform reflects strong regulatory collaboration and underscores the Securities and Exchange Commission’s continued commitment to advancing market development initiatives. Alongside Nigeria’s Frontier Market reclassification, it signals a deliberate shift towards a more accessible, liquid, and globally competitive market.

The implementation follows extensive stakeholder engagement, ensuring alignment and operational readiness ahead of the go-live date. NGX Regulation Limited will continue to provide robust oversight to support a smooth and orderly transition, while maintaining high standards of transparency and investor protection.

With this development, NGX reinforces its position as a leading multi-asset exchange, deepening liquidity, improving market access, and supporting efficient capital formation within Nigeria’s financial markets.