The Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, has blamed the recent slump in global crude oil prices on the renewed wave of aggressive tariff policies rolled out by former U.S. President Donald Trump, now back in office following his re-election.
Speaking at a press briefing in the State House, Abuja, on Tuesday, Ahmed warned that Trump’s reintroduced protectionist trade policies – particularly new tariffs targeting key global economies – are fuelling uncertainty in international oil markets, driving volatility and dampening investor confidence.
“The global oil market today is reacting sharply to the erratic tariffing policies of the new American government,” Ahmed said.
“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.”
According to the NMDPRA boss, the unpredictability surrounding the U.S. government’s economic direction is forcing investors and traders into short-term, high-risk decisions.
“The problem is not just the tariffs,” Ahmed explained.
“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.”
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Ahmed said that many oil traders are now operating on what he called a “daily strategy”, buying and selling within 24 hours due to fears of sudden policy swings from Washington.
“We’re seeing traders close out by the end of each day because they’re unsure what tomorrow’s news from the U.S. will bring,” he said. “This isn’t healthy for the global market.”
Ahmed also raised concerns that the Trump administration’s energy posture appears to favour 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,” he noted.
“Part of that includes encouraging massive domestic exploration and placing pressure on international suppliers through tariffs and trade negotiations.”
This drive, Ahmed warned, could have ripple effects for oil-dependent economies like Nigeria, which rely heavily on crude exports for revenue and foreign exchange inflows.
Nigeria, which exports nearly 90% of its crude oil, is particularly vulnerable to price fluctuations driven by external shocks.
The 2025 budget was benchmarked on a projected oil price of $74 per barrel, meaning the country could face revenue shortfalls if prices drop significantly below that mark.
Ahmed’s remarks come at a time when Nigerian authorities are already grappling with forex pressures, slow subsidy reforms, and efforts to attract investment under the Petroleum Industry Act (PIA).
“The volatility we’re seeing today is not just market-driven – it’s policy-driven, coming from one of the world’s most influential economies,” Ahmed warned.
“And for countries like Nigeria, that’s a serious concern.”
While Ahmed acknowledged that the oil market is naturally dynamic – affected by geopolitical tensions, regional conflicts, and OPEC+ decisions – he called for greater coordination among global powers to avoid actions that may destabilise energy markets.
Details later…
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