Industrial oil refinery setup in Africa with large processing units.
Nigeria is bracing for an economic blow after the Trump administration announced wide-ranging tariffs on economies worldwide. Nigeria, Africa’s largest oil producer, was hit with a tariff of 14%. The tariff is expected to have a limited impact on the country’s economy, given that its major exports of oil and gas are exempt. However, the sheer scale of the tariffs has sparked a drop in global oil prices, threatening the country’s oil-dependent economy. Consequently, crude prices have plunged to four-year lows, below Nigeria’s $75-per-barrel budget benchmark. With 90% of Nigeria’s foreign exchange earnings tied to oil, the price slump could deepen the nation’s 2025 budget deficit, currently pegged at $8 billion.
