Trump’s tariffs, global oil instability hurting Nigeria’s economy – NMDPRA chief
By Kunle Sanni
Global oil market volatility and aggressive U.S. trade policies are taking a toll on Nigeria’s economy, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, has warned.
Speaking at the State House in Abuja on Tuesday, Ahmed said fluctuating crude oil prices—driven in part by former U.S. President Donald Trump’s unpredictable tariff policies—have made it difficult for oil-dependent nations like Nigeria to plan economically.
“As consumers, we are happy when the price drops, but as a nation, it’s not good for our economy because our revenue inflow is also impacted,” Ahmed said, citing a sharp drop in global oil prices from $73 to $60 per barrel within a single day as a prime example of the market’s instability.
Ahmed attributed some of the uncertainty to Trump’s frequent policy reversals, which have created a climate of unpredictability in global markets.
“Investors are now cautious. Some are resorting to day trading just to avoid being caught in another sudden policy shift,” he explained, adding that Trump’s push for lower oil prices through increased U.S. production has further depressed the market.
Ahmed revealed that Nigeria’s petrol imports have dropped by 67%, from 44.6 million litres per day in August 2024 to 14.7 million litres by April 2025. He said the decline is due to a 670% increase in local production, which rose from 3.4 million to 26.2 million litres per day, driven by the Port Harcourt Refinery’s reopening and increased output from modular refineries.
Providing further insight into Nigeria’s supply sources, Ahmed said Oil Marketing Companies (OMCs) now account for 55 to 60% of daily petrol supply. Imports rose from 22 million litres per day in October to about 30 million litres in December before stabilizing in the mid-20s.
On refining capacity, Ahmed disclosed that 11 licensed plants—six private and five public—currently have the capacity to refine a total of 1.12 million barrels per day (bpd). He noted that the privately owned Dangote Refinery leads with a capacity of 650,000 bpd, while other modular refiners such as Aradel, OPAC, Waltersmith, Duport Midstream, and Edo Refining contribute smaller volumes.
