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US Oil Imports from Nigeria Drops by $30Billion
The United States oil Imports from Nigeria has dropped from over 30 billion US dollars a year to a mere 1.1 billion over the last five years, according to US Census Bureau statistics. US crude oil imports from Nigeria amounted to about 35 billion in 2008; 27 billion in 2010 and 31 billion dollars in 2011 but the value of oil imports from Nigeria dropped to a mere 1.1 billion in 2015.
In all, total imports from Nigeria dropped to less than 2billion dollars in 2015 from about 30 billion in 2006. While the value of imports, especially crude oil is impacted by the recent lag in international oil price, US producers have over these years ramped up local production of oil which contributed to an international glut since the biggest consumer in the world now needs less imports. Also, the Middle East crisis, and black market deals coming out of the war zone worsened by the return of Iranian oil to international market have been contributing factors to the downturn for Nigeria which depends mostly on oil.
The trade data for the first half of this year also indicate reduced trade between the two countries especially a significant reduction of US exports to Nigeria, perhaps impacted by the foreign exchange crunch in the country as well as Nigerians shift to Asian imports.
The US data also shows that balance of trade between the two countries shifted again in favor of Nigeria in the last one year but at reduced rate from previous years. US imports from Nigeria exceeded exports to Nigeria by about one billion dollars after a few years of trade balance in favor of US.
According to the data, the January trade balance was about 47 million dollars in Nigeria's favor; 100 million in February; 185 million in March; 221 million in April; 190 million in May and 275 million in June.
These figures are a reversal from 2015 when the balance of trade favored the US to about 1.5 billion dollars. The 2014 data also favors US to the tune of 2.1 billion.
The recent reversal, however, may be significant because prior to 2014, Nigeria enjoyed balance of trade advantage over the US due to oil exports. The 2013 data shows a 5 billion balance in favor of Nigeria; about 14 billion dollars in 2012; 29 billion dollars in 2011 and 26 billion in 2010. The US has however reduced her dependence on oil imports due to increased domestic production which shifted the balance drastically.
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