Nigeria’s U.S. Trade Position Weakens Amid Tariffs, Falling Non-Oil Exports

Nigeria’s trade relationship with the United States has taken a sharp turn in 2025, as new U.S. protectionist policies and falling non-oil exports undermine the country’s standing as a leading African trade partner.

In May 2025 alone, Nigeria exported 4.2 million barrels of crude oil to the U.S., valued at $311 million, down from $368 million recorded in April. Crude oil continues to be the dominant component of Nigeria’s exports to the U.S., accounting for over 62% of American crude imports from Africa during the review period.

Despite this strength, Nigeria’s crude shipments have significantly outpaced those of other African oil producers. Combined U.S. crude imports from Libya, Angola, and Ghana amounted to $811 million, further reinforcing Nigeria’s central role in African oil trade.

Data from U.S. Customs and CIF (Cost, Insurance, and Freight) records show that Nigeria’s crude exports to the U.S. reached $1.34 billion and $1.38 billion, respectively, in recent months—underlining its strategic importance in America’s energy supply chain.

However, while oil exports have remained stable, Nigeria’s overall export volume to the U.S. has declined sharply, dropping from $2.65 billion in the first five months of 2024 to $2.12 billion in the same period of 2025. This represents a $527 million decline, or nearly 20% year-on-year.

U.S. Tariffs Take Toll on Non-Oil Trade

The downturn coincides with a protectionist trade agenda under U.S. President Donald Trump, who in April signed an executive order imposing a flat 10% import tariff on goods from most countries. Nigeria was hit even harder, with a 14% tariff due to its past trade surpluses with the U.S.

While crude oil remains exempt from the new tariffs, non-oil exports—including agricultural products and manufactured goods—have been severely impacted. In May 2025, total U.S. imports from Nigeria fell to $400 million, down from $517 million a year earlier.

Trade Surplus Reversal

As Nigerian exports to the U.S. faltered, American exports to Nigeria surged, rising from $2.05 billion in the first five months of 2024 to $2.42 billion in the same period of 2025—a 17.8% increase.

This swing led to a complete reversal in trade balance. In early 2024, Nigeria enjoyed a $596 million trade surplus over the U.S. But by May 2025, that advantage had flipped, with the U.S. now holding a $295 million surplus.

Monthly figures reflect this shift: In May 2025, the U.S. exported $515 million worth of goods to Nigeria, while importing only $400 million, resulting in a $115 million trade surplus for the U.S. that month alone.

Automobile Sector Drives U.S. Export Growth

One of the most significant drivers of American exports to Nigeria is the automobile industry. From January to May 2025, the U.S. exported $426 million worth of motor vehicles and parts to Nigeria. This included:

• $312 million in passenger cars

• $29 million in trucks and buses

• $86 million in automotive parts

Nigeria Loses Ground to Other African Partners

Nigeria’s influence as a top U.S. trading partner in Africa is diminishing. The country accounted for just 10.8% of U.S. imports from Africa and 14.8% of exports to the continent in the first five months of 2025—both down slightly from the previous year.

Meanwhile:

• Egypt has emerged as the leading African destination for U.S. exports, with American shipments rising from $1.95 billion in early 2024 to $3.43 billion in 2025—a staggering 76% increase.

• South Africa remains the dominant African supplier to the U.S., exporting $8.67 billion worth of goods from January to May 2025—more than four times Nigeria’s export volume.

Conclusion: A Diminished Role in U.S.–Africa Trade

With a total trade volume of $4.54 billion, Nigeria now trails behind Egypt and South Africa in its trade relationship with the United States. The evolving landscape raises questions about Nigeria’s trade competitiveness, particularly as non-oil sectors struggle to adapt to global shifts and stricter U.S. trade rules.

Unless Nigeria diversifies its export base and strengthens trade diplomacy, its longstanding position as a strategic African economic partner to the U.S. may continue to erode.