Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, says recent tariff policies by US President, Donald Trump, is responsible for the recent slump in global crude oil prices.
Ahmed while addressing a press conference at the Presidential Villa, Abuja, on Tuesday, warned that Trump’s protectionist trade policies, especially new tariffs targeting key global economies, were fuelling uncertainty in international oil markets, driving volatility and dampening investor confidence.
According to him, “The global oil market today is reacting sharply to the erratic tariffing policies of the American government. These tariffs are not only aimed at China but are sweeping across multiple countries and regions. They are unsettling the balance of demand and supply, particularly in the energy sector.
“The problem is not just the tariffs. It’s the inconsistency. One day, a major policy is announced; the next, it is reversed or escalated. This kind of back-and-forth has made it almost impossible for investors to make long-term plans.”
The NMDPRA boss also raised concerns that the Trump administration’s energy posture favoured lower crude oil prices – possibly below the $50-per-barrel mark – through a combination of aggressive domestic drilling and strategic manipulation of global supply lines.
“There is clearly a policy direction from the U.S. President to push crude oil prices down. Part of that includes encouraging massive domestic exploration and placing pressure on international suppliers through tariffs and trade negotiations,” he said.
Ahmed further explained that the development could have ripple effects for oil-dependent economies like Nigeria, which rely heavily on crude exports for revenue and foreign exchange inflows.
He also stated that the nation’s refineries have not been able to meet the local demands estimated at about 50 million liters per day.
Ahmed further disclosed that government has approved refining licenses to about 83 companies with a combined total refining capacity of 1.124,500.
He said eight refineries have been issued Licences to Operate (LTO), 30 refineries with Licences to Construct (LTC) and 40 refineries with Licence to Establish (LTE).
The NMDPRA boss further disclosed that the country’s petrol imports dropped from 44.6 million litres per day in August 2024 to just 14.7 million litres per day by April 13, 2025 – a reduction of nearly 30 million litres daily.
He stated that the sharp decline was attributed to increased production from domestic refineries, particularly the gradual restart of the Port Harcourt Refining Company and contributions from modular refinery operators.
Ahmed described the development as a positive shift toward energy self-sufficiency.
He further stated, “After contributing virtually nothing in August, local refineries ramped up production to 26.2 million litres per day by early April.
“This marks a significant jump from just 3.4 million litres recorded in September – the first month with measurable output.”
