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Nigeria Oil And Gas Downstream Market Size (2024 - 2029)

The market size of the downstream oil and gas sector in Nigeria is poised for growth over the forecast period, driven by the government's commitment to establishing a robust domestic refining industry. Despite the challenges posed by the COVID-19 pandemic and fluctuating crude oil prices, the market has recovered to pre-pandemic levels. The reliance on imported petroleum products due to maintenance issues at major refineries highlights the potential for expansion through new refinery projects. Additionally, modular refineries present a flexible solution to adapt to changing product demands, supported by Nigeria's substantial oil reserves.

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Market Size of Nigeria Oil And Gas Downstream Industry

Nigeria Oil And Gas Downstream Market Summary
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

Nigeria Oil And Gas Downstream Market 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 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).

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Nigeria Oil And Gas Downstream Market Size Summary

The Nigerian oil and gas downstream market is poised for growth, driven by the government's commitment to establishing a robust domestic refining industry. Despite the challenges posed by the COVID-19 pandemic, which temporarily dampened demand for refined petroleum products, the market has rebounded to pre-pandemic levels. The country's reliance on imported petroleum products due to underperforming refineries highlights the need for significant investment and development in the refining sector. Modular refineries are seen as a potential solution to address fluctuations in product demand and to enhance the speed of setup. Nigeria's vast oil reserves provide a sustainable supply of crude oil, which is crucial for meeting the growing demand for refined products.

The refining segment is expected to dominate the market during the forecast period, as Nigeria seeks to bridge the gap between demand and supply of petroleum products. The country's aging refineries, including those in Kaduna, Warri, and Port Harcourt, have struggled with infrastructural decay and lack of government support, leading to underutilization and increased imports. However, initiatives like the commissioning of the Dangote Refinery aim to alleviate fuel shortages and position Nigeria as a net exporter of petroleum products. The government's plans to attract private investments, particularly through the Petroleum Industry Act 2021, are expected to revitalize the sector. This interest from private companies is anticipated to positively impact the market's growth trajectory in the coming years.

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Nigeria Oil And Gas Downstream Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Refining Capacity and Forecast, in million barrels per day, till 2028

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Key Projects Information

    6. 1.6 Market Dynamics

      1. 1.6.1 Drivers

        1. 1.6.1.1 Rising Demand for Increaing Refinening Capacity

        2. 1.6.1.2 Increasing Investment in Downstream Sector

      2. 1.6.2 Restraints

        1. 1.6.2.1 Fluctuating Price of Crude Oil May Impede the Development of the Downstream Sector

    7. 1.7 Supply Chain Analysis

    8. 1.8 PESTLE Analysis

  2. 2. MARKET SEGMENTATION BY SECTOR

    1. 2.1 Refining

    2. 2.2 Petrochemical

    3. 2.3 Retail Sales

Nigeria Oil And Gas Downstream Market Size FAQs

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.

In 2024, the Nigeria Oil And Gas Downstream Market size is expected to reach 1.14 million barrels per day.

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