Nigeria breaks 14-month US trade deficit streak as urea fuels N797 billion surplus

Nigeria's trade balance with the United States shifted dramatically to a N797.50 billion surplus in June 2026, marking the highest monthly surplus between the two nations and ending a 14-month streak of deficits. This turnaround was largely driven by a surge in exports, particularly urea, which saw a 203% increase quarter-on-quarter.

Urea exports reached N1.07 trillion in the second quarter of 2026, up from N353.04 billion in Q1 2026, making it Nigeria's largest export to the US during this period. The improvement in the trade balance was primarily export-led, as the surge in exports significantly outweighed the increase in imports. While imports declined from N779.80 billion in June 2025 to N395.60 billion, a 49.3% year-on-year drop, exports rose from N2.90 trillion in H1 2025 to N1.19 trillion in June 2026.

The reversal in the trade balance comes amid changes to US tariff policy, with Nigeria among 38 countries affected by Washington's new trade measures. The US imposed a 12.5% tariff on Nigerian exports to the US, but the exempted products account for more than 80% of Nigeria's merchandise exports to the US. The June 2026 turnaround is notable given Nigeria's 14 consecutive monthly trade deficits in the preceding months.

Historically, Nigeria has had a significant trade relationship with the US, including substantial positive trade balances in earlier months. New export categories, such as other petroleum gases, soybean products, and natural rubber, also contributed to Nigeria's export earnings, helping the country move from a deficit to a surplus.