Introduction: Why This Story Matters
Every time I read about a new crude tender by Indian Oil Corporation (IOC) or BPCL, I wonder: is this only business, or is it geopolitics? The recent news of India buying Nigerian oil, particularly the Agbami and Usan grades, convinced me it is both.
For me, this story is not only about fuelling refineries. It is about India proving to the world that it will secure energy on its own terms, regardless of pressure from Washington or Brussels.
Many people search online asking, “Why is India buying Nigerian oil?” or “How does Nigerian crude help India balance Russian imports?”. In this article, I will answer those questions and share my perspective on how this decision fits into the bigger geopolitical picture.
Why Nigerian Oil, and Why Now?
In September 2025, IOC purchased 2 million barrels of Agbami and Usan crude through TotalEnergies, along with 1 million barrels of Abu Dhabi’s Das. A month earlier, IOC had also taken 1 million barrels of Agbami from Trafigura, while IOC and BPCL together secured 22 million barrels of non-Russian crude, which included Nigerian grades.
Why Nigerian oil? Three strong reasons:
- Agbami crude → light and sweet (47° API, 0.05% sulphur), excellent for gasoline and jet fuel yields.
- Usan crude → medium and sweet (27–30° API, 0.23–0.29% sulphur), perfect for diesel blending.
- Cheaper landed cost compared to U.S. barrels.
India currently imports around 5 million barrels per day (mb/d). Russia supplies about 35–40%, while Nigerian imports are growing to 5–7% of the basket.
Russia: The Silent Backbone of India’s Oil Basket
Despite all the headlines, Russian crude remains the backbone of India’s energy security. Urals and ESPO blends are available at discounts that save billions of dollars.
By adding Nigerian crude, India strengthens its hand. We continue to benefit from Russian savings while proving to the world that our supply is diversified and resilient.
The U.S. Factor: Pressure That Does Not Work
The United States has always tried to influence India’s energy choices. Even during Donald Trump’s presidency, Washington pushed hard.
Trump once labelled India the “tariff king”, upset that New Delhi refused to open its agriculture, dairy, and fisheries markets. Reports suggested that Prime Minister Modi did not even take Trump’s calls on four occasions when talks were stuck.
That was a lesson in silent defiance. Today, the pattern continues. Washington warns, yet India keeps buying Russian oil, Nigerian oil, and Middle Eastern oil based on its own priorities.
Europe’s Weakness, India’s Strength
Europe is paying the price for cutting off Russian energy. By depending on expensive LNG and alternative crude, it now faces inflation, industrial slowdown, and unrest.
India has chosen a smarter route. By refining discounted Russian and Nigerian crude, we now export diesel to Europe and even Ukraine. The irony is clear: Europe bans Russian oil but still relies on Indian diesel, often made from Russian barrels.
This shows how India converts its energy strategy into geopolitical leverage.
Arab Gulf Risks: Why Nigeria Is a Hedge
The Gulf is important but unstable:
- Iran–Israel tensions risk blocking Hormuz shipping lanes.
- Saudi Arabia balances U.S. ties with Chinese oil demand.
- UAE and Qatar are steady, but freight rates are volatile.
Nigeria avoids these risks. Crude from West Africa moves safely through the Atlantic and Indian Oceans, giving India a secure hedge against Gulf disruptions.
China in Africa and India’s Counterpart
A common search question is: “If China dominates Africa, how can India compete?”
China does buy African crude, but often with long credit lines and political strings. Nigerian sellers face delays with Chinese buyers. India, however, pays reliably and consistently.
That makes India a preferred partner for Nigeria and helps us outpace China in Africa.
Maritime Security: Protecting Oil Routes
Crude imports are not only about contracts but also about shipping safety. Nigerian oil travels through the Atlantic, around the Cape of Good Hope, and into the Indian Ocean.
Here, India’s Navy plays a vital role. With anti-piracy patrols, naval drills, and port visits, India ensures that supply lines stay secure. This is a clear example of defence and energy policy working together.
Breaking the Dollar Chain: Rupee Trade
India has already tested the rupee-ruble trade with Russia. If Nigeria accepts rupee settlements, it will be a huge step toward de-dollarisation.
This reduces U.S. leverage, cuts forex risks, and gives India more freedom in oil diplomacy.
Global South Leadership: More Than Oil
India has positioned itself as a voice of the Global South. Buying Nigerian crude fits this vision perfectly.
This is not North–South dependency but South–South cooperation, proving that developing nations can trade directly and strengthen each other.
India’s Refining Power: An Overlooked Advantage
India owns some of the largest and most advanced refineries in the world. Plants like Reliance Jamnagar, IOC, and HPCL can process almost any crude—Iranian heavy, Russian Urals, U.S. shale, Venezuelan extra-heavy, or Nigerian light-sweet.
This flexibility gives India an edge. While others struggle with specific crude grades, Indian refiners can handle them all, allowing us to buy smartly from any market.
Green Transition vs Oil Reality
Many ask: “If India is building solar and hydrogen, why still import oil?”
The answer is simple. No nation can replace oil overnight. India invests heavily in renewables, but oil is still vital for economic growth. Nigerian and Russian barrels help us maintain low fuel prices without slowing progress.
This is not a contradiction. It is a balanced strategy.
Trump’s Shadow Still Shapes Oil Politics
Even today, Trump’s America-first policies echo globally. Arab monarchies, NATO, and OPEC still feel the pressure.
For India, the lesson is permanent. When Trump demanded access to our dairy markets, Modi refused. When Trump called repeatedly, Modi stayed firm. That same mindset now drives our oil diplomacy: we buy what suits us, not what others dictate.
India’s Real Geopolitics: Quiet, Firm, Effective
From my view, India’s energy policy proves that geopolitics is about balance, not noise.
- We buy from Russia, Nigeria, and the Middle East.
- We export diesel to Europe and Ukraine.
- We resist U.S. pressure yet maintain ties.
- We outpace China in Africa.
- We push for rupee trade to reduce dollar use.
- We deploy our Navy to secure sea lanes.
- We keep inflation low at home.
This is not luck. It is a calculated strategy.
Conclusion: India Is Quietly Winning
When I see tankers arrive from Nigeria, I see more than crude oil. I see proof of India’s rise in global geopolitics.
While Europe suffers under sanctions, while the Gulf faces instability, and while Washington threatens, India’s buying Nigerian oil signals true independence. By combining Russian discounts, Nigerian sweet grades, refining power, rupee trade, and naval security, India has built resilience that others lack.
In 2025, India is not a passive energy consumer. It is an active player shaping global oil geopolitics—and winning quietly but effectively.
Key Takeaways
- Why Nigerian oil? Cheaper, light-sweet, ideal for Indian refineries.
- What about Russia? Still India’s biggest supplier.
- Is U.S. pressure working? No—India chooses independently.
- What about Europe? Now relies on Indian diesel.
- Is China a factor? Yes—India is more reliable in Africa.
- What about green energy? Oil remains necessary for growth.
- Does refining matter? Yes—India has world-class refineries that process any crude.
FAQs
Why is India buying Nigerian oil in 2025?
Because Nigerian crude is light, sweet, affordable, and reduces overdependence on Russia or the Gulf.
Does Nigerian oil replace Russian imports?
No. Russian Urals remain dominant. Nigerian oil adds balance and flexibility.
How does this affect Europe?
Europe indirectly depends on Indian diesel refined from Nigerian and Russian crude.
Which refineries in India handle Nigerian oil?
Major complexes like Reliance Jamnagar, IOC refineries, and HPCL plants can process Nigerian grades easily.