Nigeria Oil & Gas Downstream Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 1.14 Million barrels per day |
| Market Volume (2029) | 1.36 Million barrels per day |
| CAGR (2024 - 2029) | 3.50 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Nigeria Oil & Gas Downstream Market Analysis
The Nigeria Oil And Gas Downstream Market size is estimated at 1.14 Million barrels per day in 2024, and is expected to reach 1.36 Million barrels per day by 2029, growing at a CAGR of 3.5% during the forecast period (2024-2029).
Due to regional lockdowns and a decline in demand for refined petroleum products, the COVID-19 outbreak had a negative effect on the market. Currently, the market has rebounded to pre-pandemic levels.
- The government's strong desire to have a well-established domestic refining industry will be one factor driving the market during the forecast period.At the moment, Nigeria imports almost all of its petroleum products because major refineries are having trouble keeping up with maintenance. Also, the upcoming refinery capacity expansion projects can steer the growth.
- However, the fluctuating price of crude oil may impede the development of the downstream sector.
- The popular idea of modular refineries can be a great way to deal with sudden changes in product demand and can also be set up quickly. Nigeria's huge oil reserves assure a sustainable supply of crude oil for refining input.
Nigeria Oil & Gas Downstream Market Trends
Refining Segment Expected to Dominate the Market
- The refining segment will likely be the biggest market segment during the forecast period as Nigeria's refining industry needs to grow a lot to keep up with the fast-growing demand for petroleum products.
- In Q3 of 2022, the country produced 1.2 million barrels daily, and the oil was refined for consumption. However, the capacity is not enough to meet the country's demand. According to the Nigerian National Petroleum Corporation (NNPC), Nigeria's demand for petroleum products is expected to grow by 14.6% in 2025 to 17.3 million metric tons. Thus, new refining projects are lined up to fill these loopholes in the demand-supply scenario and to reduce imports.
- Nigeria is trying to crank up its aging and unprofitable crude-processing plants. The absence of government support and the lack of foreign investments in the downstream industry have slowed down the sector's development. The decline in refining capacity utilization can also be attributed to infrastructural decay. As a result, Nigeria's four refineries, which include the northern Kaduna refinery, the Warri refinery, and the two plants located in Port Harcourt, have operated below capacity due to years of negligence, leading to the importation of most of the country's gasoline demand from other countries.
- For instance, in May 2023, Dangote Refinery was commissioned by Nigeria to meet its goal of becoming a net exporter of petroleum products. The outgoing administration believes that the refinery will alleviate Nigeria's repeated fuel shortages.
- Owing to the abovementioned factors, the refining segment is likely to experience highlighted growth during the forecast period.
Investments by Private Sector to Drive the Downstream Market
- The Nigerian oil and gas downstream sector is expected to get accelerated by investments from independent energy companies due to the government's recent plans to have a majority shareholding of private companies, even in state-owned refineries, in the coming years. The plans hinted at attracting investments from private companies.
- The country's refining sector has witnessed extreme degradation in recent years due to the productivity issues caused by ailing infrastructure. These issues demanded new investments to cure the ailing refining sector. Kaduna Refinery, with a nameplate capacity of 110,000 barrels per day, Port Harcourt Refinery I and II, Warri Refinery, and Dangote Refinery are other major refineries in the country.
- Nigeria's rapidly growing population of over 200 million is witnessing an ever-growing fuel crisis despite the vast oil reserves due to the lack of operating refineries in the nation.
- In 2021, the government of Nigeria launched the Petroleum Industry Act 2021, which aims to pave the way for the development of crude oil refineries in the nation and resolve the energy crisis in the country.
- Owing to such an interest from private companies, the Nigerian oil and gas downstream market's growth is likely to have a positive impact in the future.
Nigeria Oil & Gas Downstream Industry Overview
The Nigerian oil and gas downstream market is consolidated. Some of the major players in the market include (in no particular order) the Nigerian National Petroleum Corporation (NNPC), KBR Inc., NDEP PLC, Indorama Eleme Petrochemicals Limited, and Midoil Refining & Petrochemicals Company Limited.
Nigeria Oil & Gas Downstream Market Leaders
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NDEP plc
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Nigerian National Petroleum Corporation
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Indorama Eleme Petrochemicals Limited.
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KBR Inc.
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Midoil Refining & Petrochemicals Company Limited
*Disclaimer: Major Players sorted in no particular order
Nigeria Oil & Gas Downstream Market News
- August 2022: The Nigerian National Petroleum Company announced that the Dangote Refinery is expected to start commercial operations by mid-2023. The refinery project is one of the largest in Africa, with a refining capacity of 650,000 barrels per day.
- November 2022: Nigeria's Gasoline Integrated International announced that the company plans to build a USD 68 million refinery on Tongeji Island. The refinery will have an initial refining capacity of 100,000 liters per day and other petroleum products, which will be expanded to 400,000 liters per day.
Nigeria Oil & Gas Downstream Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Refining Capacity and Forecast, in million barrels per day, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Key Projects Information
4.6 Market Dynamics
4.6.1 Drivers
4.6.1.1 Rising Demand for Increaing Refinening Capacity
4.6.1.2 Increasing Investment in Downstream Sector
4.6.2 Restraints
4.6.2.1 Fluctuating Price of Crude Oil May Impede the Development of the Downstream Sector
4.7 Supply Chain Analysis
4.8 PESTLE Analysis
5. MARKET SEGMENTATION BY SECTOR
5.1 Refining
5.2 Petrochemical
5.3 Retail Sales
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Nigerian National Petroleum Corporation
6.3.2 KBR Inc.
6.3.3 Indorama Eleme Petrochemicals Limited
6.3.4 Midoil Refining & Petrochemicals Company Limited
6.3.5 NDEP PLC
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Increasing Focus over Modular Refineries
Nigeria Oil & Gas Downstream Industry Segmentation
Downstream operations are oil and gas processes that occur after the production phase to the point of sale. They are the final step in extracting the oil and gas from the ground and delivering them to the end user.
The Nigerian oil and gas downstream market is segmented by sector. By sector, the market is segmented into refining, petrochemical plants, and retail sales. The market sizing and forecasts have been done based on refining capacity (million barrels per day).
Nigeria Oil & Gas Downstream Market Research FAQs
How big is the Nigeria Oil And Gas Downstream Market?
The Nigeria Oil And Gas Downstream Market size is expected to reach 1.14 million barrels per day in 2024 and grow at a CAGR of 3.5% to reach 1.36 million barrels per day by 2029.
What is the current Nigeria Oil And Gas Downstream Market size?
In 2024, the Nigeria Oil And Gas Downstream Market size is expected to reach 1.14 million barrels per day.
Who are the key players in Nigeria Oil And Gas Downstream Market?
NDEP plc, Nigerian National Petroleum Corporation, Indorama Eleme Petrochemicals Limited., KBR Inc. and Midoil Refining & Petrochemicals Company Limited are the major companies operating in the Nigeria Oil And Gas Downstream Market.
What years does this Nigeria Oil And Gas Downstream Market cover, and what was the market size in 2023?
In 2023, the Nigeria Oil And Gas Downstream Market size was estimated at 1.10 million barrels per day. The report covers the Nigeria Oil And Gas Downstream Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Nigeria Oil And Gas Downstream Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Downstream Oil and Gas in Nigeria Industry Report
Statistics for the 2024 Downstream Oil and Gas in Nigeria market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Downstream Oil and Gas in Nigeria analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Downstream Oil and Gas Market in Nigeria Report Snapshots
