Nigeria Oil And Gas Downstream Companies (2024 - 2029)

Nigeria Oil And Gas Downstream Market Companies Summary

The Nigerian oil and gas downstream market is experiencing a resurgence after the negative impact of the COVID-19 pandemic. This recovery is largely due to the government's ambition to establish a robust domestic refining industry. Currently, Nigeria imports most of its petroleum products due to maintenance issues with major refineries. However, the upcoming expansion of refinery capacity is expected to drive market growth. Despite this, the fluctuating price of crude oil could hinder the development of the downstream sector. The concept of modular refineries is gaining popularity as a solution to sudden changes in product demand and can be set up quickly, with Nigeria's vast oil reserves assuring a sustainable supply of crude oil for refining input. The refining segment is anticipated to dominate the market during the forecast period due to the need for growth in Nigeria's refining industry to meet the rapidly increasing demand for petroleum products. The country is making efforts to revitalize its aging and unprofitable crude-processing plants, but a lack of government support and foreign investments has slowed development. Despite this, new refining projects are being planned to address gaps in the demand-supply scenario and reduce imports. The Nigerian oil and gas downstream sector is also expected to benefit from investments by independent energy companies, thanks to the government's recent plans to encourage majority shareholding by private firms in state-owned refineries. These investments are necessary to address the degradation of the refining sector caused by infrastructural issues.