Trump’s Seizure of Venezuelan Crude Threatens Nigeria’s Nearly $3B U.S. Oil Market
Story: written by Joseph January 7,2026
President Donald Trump’s takeover of Venezuelan oil assets and the planned transfer of up to 50 million barrels of crude to the United States could drastically disrupt Nigeria’s export relationship with American refiners. Under Trump’s strategy, Washington will oversee the sale of Venezuelan oil at market value, with proceeds directly managed by the U.S. government — a move he frames as benefiting both Venezuelans and Americans. Businessday NG+1
Nigeria, Africa’s largest crude producer, supplied roughly 38 million barrels of oil to the U.S. between January and September, generating nearly $2.9 billion in revenue. But the redirection of Venezuelan supply to U.S. Gulf Coast refineries — where heavier Venezuelan grades can compete with Nigerian grades — risks displacing Nigerian cargoes and shrinking demand for its crude in a key export market. Businessday NG
Energy analysts warn that increased Venezuelan volumes could force Nigerian producers to offer deeper discounts just to retain market share, further squeezing revenue at a time when Nigeria is already grappling with production challenges and underinvestment in its oil sector. Businessday NG
The shift underscores broader geopolitical tensions in the global energy landscape, with the U.S. seeking greater control over crude supplies and reshaping long-standing trade flows
