Throughout 2024, Nigeria maintained its position as a leading exporter of high-quality crude oil to a global clientele. Despite fluctuating global oil prices and shifting energy policies, demand for Nigerian crude oil remained strong.
Based on the National Bureau of Statistics' (NBS) latest trade data, the ten largest importers of Nigerian crude oil this year are as follows:
1. The United States – N3.64 trillion
The United States has surpassed the Netherlands to become the largest importer of Nigerian crude oil during the first three quarters of 2024, indicating a shift in the energy export landscape of the West African country.
Between January and September 2024, the US acquired Nigerian crude valued at N3.64 trillion, underscoring its role as a significant trading ally.
Research indicates that while the US has decreased its dependence on foreign oil due to heightened domestic production, it remains a leading buyer of Nigerian crude, especially for its Gulf Coast refineries that are optimized for light crude processing.
2. France – N3.34 trillion
France's refineries continued to be a reliable market for Nigerian crude in 2024. The country favored Nigerian oil due to its compatibility with existing refining systems and a comparatively lower carbon footprint than heavier crude varieties.
France's imports of Nigerian crude oil amounted to N3.34 trillion, demonstrating the strong energy relationship between the two nations.
3. Spain – N3.02 trillion
Spain's refining industry also relied significantly on Nigerian oil. As part of the European Union's strategy for energy diversification, Spain increased its imports from Nigeria to lessen its dependence on Middle Eastern supplies.
With imports totaling N3.02 trillion, Spain remains a crucial European market for Nigeria's oil exports.
4. Netherlands – N2.77 trillion
As a key center for oil refining and distribution in Europe, the Netherlands imported considerable quantities of Nigerian crude in 2024. A significant portion of this oil was refined domestically or re-exported to other European countries.
In the previous year, the Netherlands emerged as the largest purchaser of Nigeria's crude oil. In 2024, the Dutch market represented N2.77 trillion, continuing to play a vital role as a key buyer within the European Union.
5. Italy followed closely with N2.64 trillion
Italian refiners have also ramped up their acquisition of Nigerian crude, capitalizing on its quality to produce higher-value refined products such as gasoline and diesel for the European market. Italy's imports of Nigerian crude reached N2.64 trillion, securing its position among the top five purchasers.
6. Canada – N2.56trn
Canada ranked sixth, with crude oil purchases amounting to N2.56 trillion, reflecting strong demand from North America.
7. Indonesia – N2.02trn
Indonesia imported N2.02 trillion worth of Nigerian crude in the first three quarters of 2024, as South Korea emerged as a significant buyer, sourcing large quantities to satisfy its industrial and energy requirements. The light characteristics of Nigerian crude made it particularly appealing for the country's advanced refining capabilities.
8. India – N1.57trn
India, driven by its growing industrial sector and rising energy demands, imported N1.57 trillion worth of Nigerian crude during the same period. Indian refineries prefer Nigeria's light, sweet crude due to its low sulfur content.
9. Ivory Coast – N1.57trn
Ivory Coast also matched India's imports with N1.57 trillion, highlighting the importance of regional trade in West Africa. Turkey has been recognized as an emerging market for Nigerian crude in 2024.
10. The UK – N1.07trn
The United Kingdom completed the list of the top ten buyers, with imports valued at N1.07 trillion, reinforcing its economic relationship with Nigeria.
Nigeria's crude oil enjoys high demand due to its superior quality and refining suitability. BrandIconImage findings and S&P Global data confirm that Nigerian crude is predominantly "light" and "sweet," possessing low sulfur content, a critical attribute for modern refining.
Low-sulfur crude oils are more straightforward and economical to refine, making them a favored option for refineries that need to comply with strict environmental regulations.
In addition to its low sulfur levels, Nigeria’s light sweet crude is highly sought after in international markets. It demands considerably less energy and financial investment to process compared to heavier, sour crude oils, which lowers overall production expenses. This positions it as an attractive choice for buyers looking to enhance profitability in their refining activities, according to industry experts.
Nigerian crude oil is known for producing high-value refined products with great efficiency. Its unique composition allows for the generation of sought-after outputs like gasoline, diesel, and jet fuel at rates that surpass those of heavier crude varieties. This efficiency, along with its environmental benefits and cost advantages, ensures that Nigeria’s oil continues to be in high demand globally.
Nigeria’s New Crude Grade
Nigeria launched a new low-sulfur crude oil grade, Utapate, in August 2022, to augment its daily oil production. Bloomberg data indicates that the new grade achieved a June production rate of approximately 19,000 barrels per day, with projected output reaching 50,000 barrels per day by the end of 2024. The Nigerian National Petroleum Company (NNPC) Limited, in collaboration with Natural Oilfield Services Limited, successfully exported the first shipment of Utapate in July, according to industry sources.