Nigeria Records N797.5 Billion Trade Surplus With US in June as Urea Exports Surge

Nigeria’s trade balance with the United States swung sharply into a N797.50 billion surplus in June 2026, marking the country’s strongest monthly trade surplus with the US and reversing a 14-month run of bilateral trade deficits.

According to Research analysis of foreign trade data from the National Bureau of Statistics (NBS), Nigeria exported goods worth N1.19 trillion to the United States in June, while imports from the country stood at N395.60 billion.

The result means Nigeria exported roughly three times the value of goods it imported from the US during the month.

The turnaround was primarily export-led, with the exceptional increase in Nigerian exports more than offsetting the rise in imports.

What you should know

A trade surplus occurs when a country exports more goods to another country than it imports from that country.

In Nigeria’s case, the June surplus means the country earned substantially more from goods sold to the US than it spent on goods purchased from the American market.

The turnaround is particularly notable because Nigeria had recorded a prolonged period of trade deficits with the United States before June.

The latest development also comes against the backdrop of a broader increase in Nigeria’s export earnings and improving foreign-exchange conditions.

In Q1 2026, for example, Nigeria recorded a N1.63 trillion trade deficit with the US, with imports of N2.81 trillion significantly exceeding exports of N1.18 trillion.

The Q2 reversal therefore represents a major change in the direction of bilateral trade.

Urea emerges as a major driver of Nigerian exports

One of the biggest factors behind the turnaround was the sharp increase in Nigeria’s urea exports.

Urea exports rose by approximately 203% quarter-on-quarter to N1.07 trillion in Q2 2026, compared with N353.04 billion in Q1.

That makes urea by far the largest Nigerian export to the US during the period.

The development highlights the growing importance of Nigeria’s fertiliser industry as a source of non-oil export earnings.

Nigeria has increasingly benefited from strong global demand for fertiliser. Earlier in 2026, urea exports surged as disruptions linked to the Middle East conflict tightened global fertiliser supply and pushed buyers towards alternative producers, including Nigeria.

This gives the country an opportunity to convert its substantial natural-gas resources into higher-value industrial and agricultural products rather than relying exclusively on crude oil exports.

The US relationship has changed dramatically

The latest figures show just how quickly bilateral trade can change when export volumes shift.

In Q1, the United States was Nigeria’s second-largest trading partner, with total bilateral trade of N3.98 trillion. However, Nigeria imported N2.81 trillion from the US while exporting only N1.18 trillion, resulting in a N1.63 trillion deficit.

By Q2, total trade with the US declined to N2.74 trillion, but the composition changed dramatically.

Nigeria exported N1.73 trillion to the US and imported N1.01 trillion, producing a N724.69 billion quarterly surplus.

The June monthly surplus of N797.50 billion therefore appears to have been the strongest point in a much broader Q2 reversal.

Why the surplus matters for Nigeria’s foreign exchange market

Higher exports are particularly important for Nigeria because export earnings are one of the country’s major sources of foreign exchange.

When Nigerian exporters receive dollars from international buyers, those proceeds can increase the supply of foreign currency available to the domestic economy, depending on how and where the proceeds are held and converted.

This is important at a time when Nigeria has been working to improve foreign-exchange liquidity and strengthen the external position.

Nigeria’s gross foreign reserves reached $51.86 billion in July 2026, the highest level in more than 17 years, according to CBN data tracked by Nairametrics.

A stronger export base can therefore complement reserve accumulation by creating a more sustainable source of foreign-exchange earnings.

But one month does not establish a permanent trend

The June surplus is significant, but it should not automatically be interpreted as a permanent restructuring of Nigeria-US trade.

The size of the surplus was heavily influenced by a sharp increase in particular export categories, especially urea.

If commodity prices fall, global fertiliser demand weakens or export volumes normalise, the bilateral balance could narrow again.

This means the more important question is whether Nigeria can maintain higher export volumes across a broader range of products.

The bigger opportunity is non-oil exports

The urea figures illustrate a potentially important direction for Nigeria’s export strategy.

Nigeria possesses substantial natural resources that can be processed into products with higher export value, including fertilisers, petrochemicals, processed agricultural goods and other manufactured products.

The more Nigeria moves from exporting primarily raw commodities towards processed and value-added products, the greater the potential contribution of exports to foreign-exchange earnings, industrialisation and employment.

Urea is particularly interesting because it links Nigeria’s gas resources to the global agricultural supply chain.

Rather than simply exporting gas, domestic producers can use it as a feedstock for fertiliser production and export the resulting product to international markets.

What businesses and investors should watch

The key indicators to monitor include:

• Nigeria’s monthly exports to the US
• Urea and other fertiliser export volumes
• Global fertiliser prices
• Crude oil export earnings
• Non-oil export growth
• Nigeria-US import demand
• Foreign-exchange inflows from exporters
• The sustainability of Nigeria’s reserve accumulation

A sustained increase in non-oil exports would be more significant than a single monthly trade surplus because it would indicate that Nigeria is gradually diversifying its external earnings base.

The bigger picture

Nigeria’s N797.50 billion trade surplus with the United States in June represents a major reversal in bilateral trade and demonstrates the impact that stronger exports can have on the country’s external position.

The development is particularly significant because it was driven by exports rather than a collapse in imports.

The surge in urea exports provides an important clue about where some of Nigeria’s future export potential could lie: using domestic resources to produce globally demanded industrial products rather than exporting raw materials alone.

The immediate surplus may be influenced by commodity-specific factors and could therefore fluctuate from month to month.

But if Nigeria can sustain growth in fertiliser, petrochemicals, agricultural products and other non-oil exports, the US trade turnaround could become part of a broader shift towards stronger and more diversified foreign-exchange earnings.

That would matter far beyond the bilateral trade balance—it would strengthen Nigeria’s external position, support FX liquidity and potentially reduce the economy’s dependence on crude oil as its dominant source of export earnings.