India's Crude Oil Imports from Nigeria Surge Amidst Geopolitical Pressure
India is significantly increasing its imports of crude oil from Nigeria, a strategic shift driven by political pressure from the United States to reduce its dependence on Russian oil. This change is reshaping global energy trading patterns.
Here are the key details of India's growing preference for Nigerian crude:
Shift from Russian Crude: In response to US pressure, India's state-owned refiners, including the Indian Oil Corporation (IOC) and Bharat Petroleum (BPCL), are actively seeking non-Russian alternatives. Nigeria, as Africa's largest oil producer, has emerged as a key beneficiary of this shift.
Increased High-Volume Purchases: Between September and October 2025, over two million barrels of Nigerian crude oil are projected to be delivered to India. This includes a recent purchase by IOC of one million barrels of Nigeria's low-sulfur Agbami crude. These purchases are part of a wider effort by Indian refiners to secure millions of barrels from various non-Russian sources.
Crude Oil Quality: Nigerian crude grades, like Agbami, are highly valued by Indian refiners for their low sulfur content. This quality makes them an ideal feedstock for producing gasoline and diesel, which are essential for both India's domestic and export markets.
Trade Paradox: This surge in Nigerian exports to India presents a unique paradox. While Indian refiners are increasing their purchases from Nigeria, the new Dangote Oil Refinery in Nigeria is paradoxically importing crude from the United States. This is primarily due to the competitive pricing of US crude (specifically WTI Midland) and challenges in securing adequate and competitively priced domestic supply within Nigeria itself.
The long-standing trade relationship between India and Nigeria remains strong, with India having been Nigeria's top crude oil export destination in the first quarter of 2025. This recent development solidifies that partnership while highlighting the complex and shifting dynamics of the global oil market.
