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Nigeria Petrol Station Market Size (2024 - 2029)

The petrol station market size in Nigeria is anticipated to experience modest growth over the forecast period, influenced by various factors. The COVID-19 pandemic significantly disrupted the market, leading to reduced patronage and supply chain challenges. While government initiatives to enhance refining capacities aim to decrease import reliance, a lack of investment may hinder market expansion. Additionally, the smuggling of oil products poses a challenge, although government support for natural gas usage presents new opportunities. Price deregulation has also provided petrol station operators with greater autonomy, potentially impacting the market's trajectory.

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Market Size of Nigeria Petrol Station Industry

Nigeria Petrol Station Market - Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR > 1.50 %
Market Concentration Low

Major Players

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*Disclaimer: Major Players sorted in no particular order

Nigeria Petrol Stations Market Analysis

The petrol station market in Nigeria is expected to register a CAGR of around 1.5% during the forecast period. The COVID-19 outbreak caused several disruptions in oil and gas production across the world. Similarly, in Nigeria, due to lockdown measures imposed by the government, most of the filling stations in the country had low patronage as Nigerians complied with the lockdown order by the government. The outbreak of COVID-19 also caused disruptions in the supply chain and production of oil and gas, as a result of which many filling stations in the country remain closed. The production of premium motor spirit (PMS) or petrol also has remained stagnant with very little growth. Factors such as rehabilitation and up-gradation of existing refineries help the government's efforts to reduce reliance on refined product imports by adding new refining capacities (using modular and large refinery complexes). However, a lack of investment is expected to restrain the market during the forecast period.

  • Smuggling of crude oil and refined products along the borders is expected to restrain the market during the forecast period.
  • Government support to boost the use of natural gas in the country is expected to be proved a major opportunity for petrol station owners in the upcoming years. For instance, in September 2020, the Department of Petroleum Resources (DPR) in Nigeria ordered 9,000 petrol stations across the country to install natural gas fueling equipment to boost the sale of natural gas.
  • The price deregulation is expected to drive the petrol station market in the country as operators now sell at the current fuel prices like that in the international market. This has allowed for some autonomy for the operators in the coming years.

Nigeria Petrol Stations Industry Segmentation

The Nigerian petrol station market report includes:

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Nigeria Petrol Station Market Size Summary

The petrol station market in Nigeria is poised for modest growth over the forecast period, despite challenges such as the lingering effects of the COVID-19 pandemic, which disrupted oil and gas production and led to reduced patronage at filling stations. The market is characterized by a fragmented landscape, with operations managed by independent petroleum marketers, major oil marketers, and the Nigerian National Petroleum Corporation (NNPC). Key players include TotalEnergies SE, Oando PLC, and MRS Holdings Ltd, among others. The market's growth is hindered by issues like smuggling of crude oil and refined products, which significantly impacts the economy by diverting substantial volumes of petroleum products to neighboring countries. Government initiatives to boost natural gas usage and the recent price deregulation are seen as potential opportunities for market expansion, allowing operators to align more closely with international fuel prices.

The market dynamics are further influenced by historical price regulations, which have now shifted towards a more deregulated framework, offering operators greater autonomy. This change is expected to drive the market as it aligns with global crude oil price trends. However, the market faces ongoing challenges, including the need for substantial investment in infrastructure and the impact of high unemployment rates, which exacerbate smuggling issues. The government's efforts to curb smuggling through border closures and restrictions have led to fuel scarcity and price increases in border areas, highlighting the complex interplay between market regulations and economic conditions. Despite these challenges, strategic acquisitions and regulatory adjustments continue to shape the market landscape, offering avenues for growth and consolidation.

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Nigeria Petrol Station Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Crude Oil Refining Capacity Forecast in thousand barrels per day, till 2027

    3. 1.3 Refined Products Production Forecast in billion liters, till 2027

    4. 1.4 Premium Motor Spirit (PMS) or Petrol Production Forecast in million liters, till 2027

    5. 1.5 Refined Products Consumption Forecast in billion liters, till 2027

    6. 1.6 Fuel Price Analysis

    7. 1.7 Number of Fuel Station Analysis

    8. 1.8 Recent Trends and Developments

    9. 1.9 Government Policies and Regulations

    10. 1.10 Market Dynamics

      1. 1.10.1 Drivers

      2. 1.10.2 Restraints

    11. 1.11 Supply Chain Analysis

    12. 1.12 PESTLE Analysis

Nigeria Petrol Station Market Size FAQs

The Nigeria Petrol Station Market is projected to register a CAGR of greater than 1.5% during the forecast period (2024-2029)

TotalEnergies SE, Nigerian National Petroleum Corporation, Sharon Group Nigeria, Oando Plc and MRS Holdings Company Ltd are the major companies operating in the Nigeria Petrol Station Market.

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Nigeria Petrol Station Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)