Nigeria Poised to Become India’s Top Oil Supplier as Russian Imports Plunge

Nigeria is set to emerge as India’s leading crude oil supplier as New Delhi scales back imports of Russian oil, Bloomberg reports indicate. Indian purchases from Russia are expected to drop sharply to 800,000 barrels per day in December from 1.9 million barrels per day in November, opening the door for increased Nigerian exports.

Industry data shows India has steadily raised crude imports from Nigeria in 2025, particularly in the latter part of the year. Indian refiners, responding to U.S. pressure and tighter Western sanctions on Russian oil, have increasingly sourced West African grades such as Agbami and Usan to diversify supplies and meet growing domestic demand.

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The strategic pivot by Indian refiners aims to reduce reliance on Russia while ensuring stable energy supplies. State-owned refineries, including Indian Oil Corp (IOC) and Bharat Petroleum (BPCL), have purchased millions of barrels of Nigerian crude for September and October deliveries. Nigerian crude is considered attractive due to its favourable pricing and compatibility with India’s refinery specifications.

The reduction in Russian imports follows stricter compliance measures at Indian ports and heightened banking scrutiny, ensuring adherence to Western sanctions. Enhanced port inspections now require certificates of origin, flag registry data, and additional documentation for tankers, while banks are monitoring payment flows related to Russian oil.

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Officials noted that all Indian refiners, except Rosneft-backed Nayara Energy Ltd., have cut Russian purchases, with Nayara increasing volumes due to European Union sanctions restricting alternative supply sources.

The shift aligns with India’s broader efforts to diversify its energy portfolio and strengthen trade ties with African oil producers amid global geopolitical changes. Nigeria, for its part, has seen a rebound in oil output in 2025, partly driven by rising demand from India as the country works to meet its production targets and capitalise on emerging export opportunities.

This development underscores a growing trend of African crude gaining ground in Asia, supported by competitive pricing, quality, and strategic geopolitical shifts that favour West African producers like Nigeria.