President Trump’s proposed energy policies, including a national energy emergency declaration, aim to increase oil and gas production in the United States. These plans could significantly reduce the US demand for imported crude oil, including from Nigeria, affecting Nigeria’s oil exports and revenue.

The United States once imported a significant portion of its crude oil from Nigeria. However, with the rise of shale oil production and new government policies, US reliance on foreign oil has dropped. Despite this, Nigeria exported $4.73 billion worth of oil to the US in 2023.

Experts believe this figure could decrease further as Trump’s policies encourage more domestic production in the US, increasing global oil supply and potentially lowering prices.

Dr. Muda Yusuf, an economist and CEO of the Centre for the Promotion of Private Enterprise (CPPE), explained that a rise in global oil supply would likely cause oil prices to drop. While lower prices can benefit businesses by reducing energy costs, they may hurt Nigeria’s revenue from oil exports.

Port Harcourt-based energy analyst Dr. Bala Zakka emphasized the need for Nigeria to process its crude oil locally instead of depending on exports. This approach would add value to the economy and reduce reliance on international buyers.

Amid these challenges, local efforts to boost refinery capacity offer hope. The Dangote Refinery and the Port Harcourt Refinery are expected to help stabilize fuel supply in Nigeria.

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has partnered with Dangote Refinery to ensure the availability of petrol during peak seasons. This collaboration is part of a strategy to prevent fuel shortages and provide a steady supply throughout the festive season and beyond.