The Nigeria oil and gas market attained a volume of 1.37 MMT in 2024. The market is expected to grow at a CAGR of 5.30% during the forecast period of 2025-2034 to reach a volume of 2.30 MMT by 2034.
The oil and gas market in Nigeria is continuously growing due to renewed investments, reforms initiated by the government, and rising global interest. The Petroleum Industry Act (PIA), enacted in 2021 has been a major turning point, streamlining governance and providing fiscal clarity to attract further foreign investments. According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the country recorded over USD 10 billion in new oil and gas investments by mid-2024, indicating the significant growth in the market.
Moreover, the Nigerian National Petroleum Company Limited (NNPCL) has transitioned into a fully commercial entity. This move, completed in July 2022, has opened up several opportunities for strategic partnerships, notably with Daewoo and ENI, to expand refinery capacity and optimize liquefied natural gas (LNG) output. As a result, Nigeria’s oil production, which dipped to 1.2 million barrels per day in 2022 due to pipeline vandalism and theft, is rebounding with a target of 1.7 million barrels per day in 2025.
Additionally, the Decade of Gas initiative, launched by the Nigerian government, aims to leverage the country’s 206 trillion cubic feet of proven gas reserves for industrial and export purposes. This has been another key motivator of the Nigeria oil and gas market growth. The Nigeria-Morocco Gas Pipeline, a USD 25 billion project, has garnered further support from ECOWAS, reinforcing Nigeria’s ambition to become West Africa’s gas powerhouse, boosting further demand in the market.
Base Year
Historical Period
Forecast Period
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.
Compound Annual Growth Rate
5.3%
Value in MMT
2025-2034
*this image is indicative*
| Nigeria Oil and Gas Market Report Summary | Description | Value |
| Base Year | MMT | 2024 |
| Historical Period | MMT | 2018-2024 |
| Forecast Period | MMT | 2025-2034 |
| Market Size 2024 | MMT | 1.37 |
| Market Size 2034 | MMT | 2.30 |
| CAGR 2018-2024 | Percentage | XX% |
| CAGR 2025-2034 | Percentage | 5.30% |
| CAGR 2025-2034 - Market by Extraction | Off-Shore | 5.9% |
| CAGR 2025-2034 - Market by Type | Downstream Gas | 6.0% |
The enactment of the PIA has significantly reshaped the Nigeria oil and gas market dynamics. The act has separated commercial operations from regulations, making NNPCL a profit-driven entity. As of early 2024, NNPCL has inked over 20 new partnerships, including one with Afreximbank worth USD 3 billion to stabilize crude oil supply. This reform has driven investor confidence, reduced bottlenecks, and ensured higher revenue retention for the federal government.
The Nigerian oil and gas market is undergoing a dynamic transformation, with the goal of leveraging its massive natural gas reserves to generate economic growth. Initiatives such as the National Gas Expansion Program (NGEP) aim to increase the use of gas for power generation, industrial use, and household consumption. According to data from the Nigerian National Petroleum Corporation (NNPC), domestic gas use has increased significantly. Domestic gas usage rose from 700 million standard cubic feet per day (MMSCFD) in 2020 to 1.2 billion MMSCFD in 2023. The government aims to minimize gas flaring by lowering the flare rate from 22% in 2020 to 10% by 2025.
The most important development noted in the Nigeria oil and gas market is the Dangote Refinery, Africa’s largest single-train refinery with a 650,000 barrels/day capacity. This refinery is expected to slash Nigeria’s reliance on fuel imports to a considerable extent. This move supports backward integration and cuts down on subsidy losses. Furthermore, modular refineries in Bayelsa and Rivers states are scaling up output with government incentives. According to the Ministry of Petroleum Resources, these domestic units are anticipated to add 200,000 barrels/day processing capacity by 2026.
The ongoing Decade of Gas policy is seeing momentum through aggressive FID approvals. The Ajaokuta-Kaduna-Kano (AKK) pipeline—currently 70% completed, is expected to supply gas to key northern industrial hubs. The Nigeria LNG Train 7 project, a USD 5 billion expansion, is another highlight of the Nigeria oil and gas market. This project is expected to boost export capacity by 35%. These efforts place Nigeria on a trajectory to monetize its massive reserves while meeting both domestic power and export goals.
Infrastructure security and technological upgrades have been a key trend in the Nigeria oil and gas market. New strategies combining surveillance drones, pipeline monitoring AI, and collaboration with the Tantita Security Services, contracted by NNPCL, have yielded visible results in terms of combatting oil theft and pipeline vandalism. Between 2022 and 2023, Nigeria reportedly saved over 100,000 barrels/day from theft. The deployment of real-time data systems is also improving flow assurance and asset tracking. Additionally, the upcoming USD 2.8 billion OB3 gas pipeline is being built with tamper-proof coating and smart sensors to curb illegal tapping.
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The EMR’s report titled “Nigeria Oil and Gas Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:
Market Breakup by Extraction
Key Insight: Deepwater offshore fields have accounted for the dominant share of the Nigeria oil and gas market. Companies like Shell and ExxonMobil are expanding subsea installations, citing stable fiscal terms. Moreover, offshore production's lower community-related disruptions make it a more predictable revenue stream. The segment of offshore operations is further driven by favorable Brent prices and improved project cycle efficiencies.
Market Breakup by Type
Key Insight: Downstream oil currently dominates the Nigeria oil and gas market. This segment is increasingly pivoting to regional exports. New pipelines linking refineries to Apapa and Calabar ports are underway to cut export logistics costs by 20%. NNPCL and Sahara Energy's new JV aims to distribute refined products to neighboring ECOWAS markets. Moreover, investments in storage terminals and vessel loading infrastructure are evidently accelerating to support bulk exports. The government’s interest in local refining has led to increased utilization that has also improved supply consistency.
| CAGR 2025-2034 - Market by | Extraction |
| Off-Shore | 5.9% |
| On-Shore | XX% |
| CAGR 2025-2034 - Market by | Type |
| Downstream Gas | 6.0% |
| Downstream Oil | XX% |
By Extraction, the On-Shore Segment Dominated the Market
On-shore fields remain the key segment in the Nigeria oil and gas market. Despite legacy challenges like community unrest, companies like Seplat and NNPCL are investing in digital oilfield solutions to drive recovery rates. The OML 13 project by NNPCL and Sterling Oil, targeting 100,000 barrels/day, has sustained the dominance of this segment. Additionally, onshore assets benefit from easier logistics and lower development costs compared to offshore ventures.
Offshore oilfields, particularly in deepwater zones, are rapidly boosting the Nigeria oil and gas market. Projects like TotalEnergies’ Egina field, producing over 200,000 barrels/day, have shifted focus to high-volume. Offshore assets are insulated from vandalism risks and tend to offer longer production life. Nigeria earned over USD 4.2 billion in offshore royalties. With improved terms under the PIA and clearer JV structures, offshore projects are being fast-tracked.
By Type, Downstream Oil Occupy the Substantial Share of the Market
Downstream oil holds the major revenue share of the Nigeria oil and gas market as it plays a key role in refining, distributing, and marketing oil products. The downstream oil segment comprises all of the critical infrastructure related to refineries, depots, pipelines, and retail outlets that provide fuel and other oil produced products around the country. Downstream oil's dominance is driven by its pivotal role in the supply of energy and the circulation of the economy, depending on utility of energy for commercial purposes, including transport and power generation.
The downstream gas sector is further contributing to the Nigeria oil and gas market value with aggressive investment in storage, pipelines, and export terminals. Nigeria Gas Infrastructure Company (NGIC) has committed over USD 1 billion to expand the Escravos-Lagos pipeline and complete the OB3 line. The surge in CNG stations, with over 150 planned under the Presidential CNG Initiative, is also spurring retail demand. Nigeria is also finalizing gas swap agreements with Morocco and Ghana, opening new regional trade routes.
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The Nigeria oil and gas market players like Seplat and Waltersmith are scaling up modular refineries and brownfield operations, while IOCs such as TotalEnergies and Shell are doubling down on offshore and gas-centric assets. Areas of focus include digital oilfields, ESG compliance, and gas infrastructure. The introduction of the Midstream & Downstream Gas Infrastructure Fund (MDGIF) is opening doors for midstream financiers. Moreover, Nigeria oil and gas companies are also exploring power-generation synergies with gas to tap the country’s 5GW energy deficit. Additionally, partnerships with indigenous oil firms are now crucial for accessing licenses and navigating complex regulatory terrains. With government-backed reforms creating an enabling environment, companies focused on innovation, infrastructure, and compliance are well-positioned to grow in the market landscape.
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.
Shell Plc, established in 1907 and headquartered in London, is a key player in Nigeria’s oil and gas market. Through Shell Petroleum Development Company (SPDC), it leadsin offshore exploration, gas projects, and infrastructure development across the country.
Nigerian National Petroleum Corporation is a for profit oil company based in Abuja, Nigeria. The company was founded in 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.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other key players in the market are 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.
Explore the latest trends shaping the Nigeria Oil and Gas Market 2025-2034 with our in-depth report. Gain strategic insights, future forecasts, and key market developments that can help you stay competitive. Download a free sample report or contact our team for customized consultation on Nigeria Oil and Gas Market trends 2025.
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2024, the Nigeria oil and gas market reached an approximate volume of 1.37 MMT.
The market is projected to grow at a CAGR of 5.30% between 2025 and 2034.
The market is estimated to witness a healthy growth in the forecast period of 2025-2034 to reach a volume of 2.30 MMT in 2034.
Key strategies driving the market include investing in ESG-aligned infrastructure, forming joint ventures with local firms, deploying real-time monitoring tools, and scaling gas-based projects.
The key challenges observed in the market include unstable fiscal regimes, oil theft, forex volatility, and delayed FIDs.
Key players in the market are Exxon Mobil Corporation, Total Energies SE, Nigerian National Petroleum Corporation, 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.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2024 |
| Historical Period | 2018-2024 |
| Forecast Period | 2025-2034 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Extraction |
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| Breakup by Type |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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