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India's Strategic Oil Move: Turning to Africa Amid US Tariff Pressure

2025-08-10  Niranjan Ghatule  
India's Strategic Oil Move: Turning to Africa Amid US Tariff Pressure

They say not every problem can be solved by giving a strong verbal response. Sometimes, the real victory belongs to the one who smiles in front and makes their moves behind the scenes. This time, India has done exactly that.

When the United States imposed tariffs of up to 50% on Indian goods, many believed that India would be forced to bow down. However, India chose a different path—turning towards Africa and securing a major crude oil deal with Nigeria. This is not just about oil; it is a masterstroke in power balancing and energy diplomacy.

The US tariff shock began in Washington. Soon after India’s National Security Advisor Ajit Doval visited Russia, anger in the US administration escalated. The Trump administration decided to increase tariffs by an additional 25% on top of the already existing 25% tariff, meaning Indian goods going to the US would now face a total of 50% tariffs. This is among the highest tariffs the US has imposed on any country.

The reason was clear—India continues to buy large quantities of oil from Russia, rejecting Washington’s “take it or leave it” offers. The challenge for India is to keep its relationship with Russia strong without fully breaking ties with the US. This is where India’s power-balancing strategy comes in—remaining friendly with allies while avoiding turning trade partners into adversaries.

Enter Nigeria. As West Africa’s largest country and the continent’s biggest economy, Nigeria has long been a supplier of oil to India. In 2021–22, trade between India and Nigeria was worth around USD 14.95 billion, with USD 9.29 billion of that in crude oil alone. However, due to India’s increasing closeness with Russia, this trade declined to USD 7.89 billion in 2023–24. Now, India is reviving the relationship.

The Indian Oil Corporation has already reserved 1 million barrels of Nigeria’s Akpo crude for delivery in September 2025. This is more than just an oil purchase—it is a message to the US that India has other options and will not yield to pressure from any single country.

Is India stopping its oil imports from Russia? Absolutely not. Millions of barrels of Russian crude are still arriving at Indian ports. According to an India Today report, the US tariffs will have a negligible impact on the Indian economy—just 1.87% on exports and only 0.19% on GDP. India can easily handle this.

Beyond oil, India and Nigeria are now planning deeper cooperation in pharmaceuticals, agricultural machinery, digital technology, and food processing. In March 2025, both nations set a target of USD 20 billion in trade. If achieved, Nigeria will not only be a key player in India’s energy security but will also strengthen India’s presence in Africa.

This deal is not just about energy—it is political. It aligns with BRICS expansion, the politics of the Global South, and strategic presence in Africa. Nigeria’s role in all of these is crucial.

In summary, India’s move towards Africa in the face of the US’s 50% tariffs is not simply about buying oil—it is a significant diplomatic maneuver. It strengthens ties with Russia, maintains balance with the US, and builds influence in Africa. This is India’s Energy Diplomacy 2.0 in action.

Disclaimer:The information in this article is based on publicly available reports and sources. While every effort has been made to ensure accuracy, readers are advised to verify facts independently before making any investment, trade, or policy-related decisions. The article reflects analysis for informational purposes only and does not represent official government statements.


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