Nigeria Oil and Gas Market Report and Forecast 2024-2032

Nigeria Oil and Gas Market Size

In the Nigeria oil and gas market, the market for gas attained a volume of 1.37 MMT in 2023 and is expected to grow at a CAGR of 5.30% between 2024 and 2032, to reach 1.85 MMT in 2032. Meanwhile, the Nigeria oil market attained a volume of 441 thousand barrels per day and is expected to grow at a CAGR of 3.60% between 2024 and 2032, to reach 542 thousand barrels per day in 2032.

Nigeria Oil and Gas Market Outlook

• As of January 1, 2024, the total reserves of crude oil and condensate have increased significantly to 37.50 billion barrels, up from 36.966 billion barrels reported on the same date in 2023.

• As per industry reports, Nigeria's gas reserves were estimated at 209.26 trillion cubic feet (Tcf) as of January 1, 2024.

• Nigeria is among the world’s top five exporters of liquefied natural gas (LNG).

• Currently, Nigeria has proven reserves equivalent to 237.3 times its annual consumption.

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Nigeria Oil and Gas Market Growth

Oil and gas refer to the mining and refining of crude oil and natural gas, converting them into useable petroleum products. The production of oil and gas is a multi-stage process which includes discovering, transporting, and turning them into finished products which are then sold to various sectors. Over the forecast period, the anticipated increase in expansion of petroleum refineries in Nigeria is likely to generate a high demand for oil and gas.

The increasing investments towards increasing the natural gas production in the country, to maximise the output of residential and commercial sector operations have led to Nigeria oil and gas market development. Moreover, the increasing application of oil and gas in gas flaring processes across the country is further fuelling the market growth. Additionally, the favourable gas flaring commercialisation programmes are expected to provide impetus to the market in the coming years.

Key Trends and Developments

Offshore oil and gas exploration activities, technological advancements in the upstream sector, and development of natural gas infrastructure are augmenting the Nigeria oil and gas market growth

May 2024

Seplat Energy Plc has announced a drilling program for 2024 to deliver 13 new oil and gas wells across its operated and non-operated assets. Three of the new wells, Ovhor-22, Sapele-38, and OBEN KIKB-02, are expected to be completed by July 2024, highlighting the potential of the oil and gas market in Nigeria.

March 2024

Savannah Energy has invested USD 60 million to acquire full control of Stubb Creek in Nigeria, following agreements with Chinese and Nigerian players. This acquisition underscores the competitive landscape and the growing interest of international players in Nigeria's oil and gas industry.

March 2024

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the New Energy Transfer Group from Poland have partnered to develop sustainable energy solutions. The collaboration will focus on areas such as solar, wind, and bioenergy, as well as energy storage and distribution.

February 2024

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigeria Data Protection Commission (NDPC) have partnered to enhance data management and protection in the oil and gas sector.

Development of natural gas infrastructure

There is a growing focus on investments in natural gas infrastructure in Nigeria, such as gas processing facilities, gas-to-power projects, and pipelines. This is driven by the country's large natural gas reserves and the shift towards gas as a cleaner transition fuel.

Offshore oil and gas exploration and production

Nigeria offshore oil and gas market share continues to increase due to favourable government incentives and policies as well as interest from international oil and gas companies. Major projects like the Egina ultra-deep offshore field are being developed.

Expansion of downstream sector

Nigeria is working to develop its downstream sector, including plans for large-scale refineries like the Dangote refinery, to reduce reliance on imported refined products and become a regional refining hub. This presents opportunities for foreign firms to provide equipment and services.

Marginal field development

Nigeria is encouraging investments in the development of marginal oil fields, which have an average economic life of 8-15 years and can produce 4,000-10,000 barrels per day. This is part of efforts to increase the country's oil reserves, thus aiding the Nigeria oil and gas market.

Technological advancements in the upstream sector

The upstream sector has seen significant technological progress in areas like seismic imaging, drilling techniques, and reservoir modelling, enabling access to previously inaccessible reserves and enhancing production rates.

Nigeria Oil and Gas Market Trends

Market players in Nigeria are actively engaged in offshore oil and gas exploration and production. Notable projects like the Egina ultra-deep offshore field, operated by TotalEnergies, showcase the industry's focus on tapping into deepwater reserves for increased production capacity and reserves replenishment.

Significant investments are being made in natural gas infrastructure in Nigeria, which can positively shape the Nigeria oil and gas market outlook. For instance, the Nigeria LNG Limited (NLNG) operates one of the world's largest gas liquefaction plants in Bonny, highlighting the country's commitment to developing its natural gas resources for domestic consumption and export.

Additionally, Nigeria is encouraging investments in the development of marginal oil fields to increase its oil reserves and production capacity. Companies like Seplat Petroleum have successfully developed marginal fields, demonstrating the potential for smaller fields to contribute significantly to the country's oil output and energy security.

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Nigeria Oil and Gas Industry Segmentation

The EMR’s report titled “Nigeria Oil and Gas Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segment:

Nigeria Upstream Oil Market Breakup by Extraction

• On-Shore

• Off-Shore

Nigeria Downstream Oil and Gas Market Breakup by Type

• Downstream Oil
  • Breakup by End Use 
    • Transportation 
    • Agriculture, Public and Commercial Services 
    • Industrial Energy Use 
    • Household Energy Use
• Downstream Gas
  • Breakup by End Use 
    • Transportation 
    • Agriculture, Public and Commercial Services 
    • Industrial Energy Use 
    • Household Energy Use

Nigeria Oil and Gas Market Share

Upstream and downstream sector contributes to market growth as they help in targeting the growing demand for oil and gas products

The upstream sector in the market involves activities related to exploration, drilling, and production of crude oil and natural gas. The sector plays a crucial role in the country's economy, contributing significantly to government revenue and foreign exchange earnings. Investments in offshore exploration and production, technological advancements, and the development of marginal oil fields are key trends shaping the upstream sector in Nigeria.

The midstream sector focuses on the transportation, storage, and processing of crude oil and natural gas. It plays a vital role in ensuring the efficient movement of oil and gas from production sites to refineries and distribution centers. In Nigeria, midstream infrastructure development, such as pipelines, storage facilities, and gas processing plants, is essential for optimising the country's energy supply chain. Companies are investing in expanding midstream infrastructure to enhance operational efficiency and meet growing demand for oil and gas products.

As per Nigeria oil and gas market analysis, the downstream sector involves refining crude oil into various petroleum products, petrochemicals, and retail sales of refined products. The sector is crucial for meeting domestic demand for refined products, reducing import dependency, and supporting economic growth. Investments in refining capacity expansion projects, petrochemical plants, and retail sales infrastructure are driving growth in the downstream sector.

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Leading Companies in the Nigeria Oil and Gas Market

Market players are focused on providing cutting-edge technologies, offshore exploration and production, and marginal field development to increase their market share

Exxon Mobil Corporation is a leading natural gas company which caters to the energy demands of various sectors across the world. This company discovers, produces, and sells crude oil, natural gas, petroleum products, and various oil and gas-related resources. It was founded in the year 1999 and is headquartered in Texas, United States.

Total Energies SE is a petroleum company which explores and produces oil and gas, renewable energies, bioenergies, electricity, refining and petrochemicals, speciality chemicals, and trading and shipping services, among others. The company was established in the year 1924 and is currently headquartered in Courbevoie, France.

Nigerian National Petroleum Corporation is a for profit oil company based in Abuja, Nigeria. The company was founded in the year 1977 and currently is one of the largest oil producers and suppliers in Africa. The services offered by the company include upstream and downstream oil and gas products, gas and power, new energy, and non-energy services, among others.

Other key players in the Nigeria oil and gas market report include Shell PLC, Chevron Corporation, Lekoil Nigeria Limited, Sterling Oil Exploration & Energy Production Co. Ltd., Pinnacle Oil and Gas Company Limited, CNOOC International Ltd., and Eni S.p.A., among others.

Key Highlights of the Report