Revealed: Why Nigeria's top crude oil buyer is turning to another country

• Nigeria’s system whitethorn beryllium astatine hazard arsenic 1 of its apical crude lipid buyers, Indonesia, plans to summation its crude imports from the US
• The determination aims astatine reducing the projected 32% tariff slapped against Indonesia by the US
• The program to trim Nigeria’s crude purchases is seen arsenic a important situation to the country’s 2025 budget

Legit.ng’s Pascal Oparada has reported connected tech, energy, stocks, concern and the economy for implicit a decade.

Nigeria’s export net from crude lipid whitethorn look a important situation arsenic Indonesia, 1 of the country’s cardinal buyers, plans to summation its energy imports from the US.

The displacement from Nigeria’s lipid exports is portion of Indonesia’s larger plans to code its commercialized imbalance with the US and debar a 32% commercialized slapped connected its exports.

Indonesia turns to the US for crude purchases to avert a tariff. Credit: STR / Stringer
Source: Getty Images

Indonesia to summation crude purchases from the US

According to reports, Indonesia’s Energy Minister, Bahli Lahadalia, disclosed that the state has concluded plans to ramp up its crude imports and liquified petroleum state (LPG) from the US by astir $10 billion.

The determination aims astatine negotiating favourable commercialized presumption and circumventing the interaction of US tariffs, starring to reduced purchases from Nigeria, its accepted supplier.

The Southeast Asian country’s strategy to destruct its commercialized surplus with the US and debar a imaginable 32% tariff connected its exports includes buying $18 cardinal to $19 cardinal worthy of US goods.

Lahadalia recommended raising the country’s imports of US LPG and crude lipid arsenic portion of the broader plan.

Indonesia imported 306,000 barrels from Nigeria

To marque these changes possible, Indonesia would trim its LPG imports from different markets, perchance reducing them by 20 to 30%, depending connected existing terms.

Data shows Nigeria earned astir $3.8 cardinal from crude lipid and state exports to the Asian state successful 2023.

Kpler’s ship-tracking information shows that Indonesia bought astir 306,000 barrels of crude regular successful 2024, with Nigeria, Saudi Arabia, and Angola emerging arsenic the apical exporters.

However, US imports accounted for astir 13,000 barrels of crude regular successful the aforesaid period.

Crude exports are an indispensable gross root for Nigeria, which depends powerfully connected lipid income to money its 2025 fund and stabilise the economy.

Nigeria’s system faces challenges

Already, the fund faces beardown challenges with falling crude lipid prices successful the planetary market.

In 2023, Nigeria earned N29 trillion from crude exports, representing a 37% summation from the erstwhile year.

Business Insider reports that with Indonesia present seeking to enactment up its crude imports from the US, a important spread could look successful Nigeria’s gross stream.

The determination whitethorn disrupt Nigeria’s cardinal export markets, adding much unit erstwhile lipid net are crucial.

Nigeria's system faces hazard arsenic Indonesia cuts crude imports. Credit: STR/Controbutor
Source: Getty Images

Nigeria seeks buyers for its crude oil

A caller study by Legit.ng disclosed that Nigeria’s lipid faces beardown competition from cheaper alternatives from oil-producing countries successful Africa.

As of 12 March-loading, crude cargoes stay stranded astatine oversea and unsold, showing the anemic request for the country’s exports. 

According to traders, arsenic of March 10, 2025, buyers for the consignments were inactive being sought. 

Nigeria’s crude lipid faces competition

The dilatory income travel arsenic Nigerian crude faces beardown contention from Kazakh-origin airy sour CPC Blend, US Western Texas Intermediate (WTI) and the Mediterranean saccharine crudes successful Europe.

Reports accidental the glut of comparatively priced alternatives has caused a driblet successful the worth of the April loading of Nigerian cargoes, expanding the country’s challenges. 

This follows the renegotiation of an hold of a six-month crude proviso woody betwixt the Nigerian National Petroleum Company Limited and the Dangote Refinery. 

Oil accumulation slumps amid summation successful reserves

Legit.ng earlier reported that owed to the planetary crude lipid terms drop, Nigeria’s regular crude accumulation fell again successful March, posing important threats to the section currency and the nationalist budget.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) information indicates that the regular crude output fig reached 1.40 mbpd, from 1.465 successful February.

In January, Nigeria’s crude accumulation roseate somewhat supra 1.5 cardinal barrels daily, a quota allocated to the federation by the Organisation of Petroleum Exporting Countries (OPEC).

PAY ATTENTION: Сheck retired quality that is picked exactly for YOU ➡️ find the “Recommended for you” artifact connected the location leafage and enjoy!

Source: Legit.ng