Nigeria Oil and Gas Market Overview
Nigeria’s oil and gas market is a foundational pillar of the country’s economy, generating the majority of government revenues and foreign exchange earnings. As Africa’s largest oil producer and one of the world’s leading exporters of crude oil, Nigeria has vast hydrocarbon reserves concentrated mainly in the Niger Delta and offshore deepwater fields. The sector is dominated by multinational oil companies operating in partnership with the Nigerian National Petroleum Corporation (NNPC), the state oil company. Despite abundant resources, the industry faces ongoing challenges including production disruptions due to security issues, regulatory complexities, and infrastructure deficits. Over recent years, the Nigerian government has focused on reforms to attract investment, increase local content, and diversify the energy mix. In 2024 and 2025, Nigeria continues to emphasize upstream exploration and production expansion, gas commercialization, and midstream infrastructure development, while supporting downstream capacity upgrades to meet domestic demand.
Nigeria’s oil and gas value chain encompasses extensive upstream, midstream, and downstream activities. The upstream sector includes onshore and offshore exploration, with significant activity in deepwater blocks and the prolific Niger Delta basin. The government continues to auction new exploration licenses and incentivize marginal field development to boost production. Midstream infrastructure consists of a complex network of pipelines, flow stations, and export terminals such as Bonny and Forcados, which handle crude exports and natural gas liquids. Efforts are underway to expand gas processing and transportation capabilities, including the Nigeria Gas Transportation Network Company’s pipeline projects aimed at linking gas supply to power plants and industries. Downstream operations are anchored by refineries in Port Harcourt, Warri, and Kaduna, which currently operate below capacity, prompting plans for privatization and modernization. The downstream segment also includes a growing network of fuel distribution companies and expanding petrochemical ventures to reduce fuel imports and add value domestically. Overall, Nigeria’s oil and gas market remains critical to national development, balancing resource exploitation with reform, security, and infrastructural modernization.
Nigeria Oil and Gas Market Latest Developments
The Dangote Petroleum Refinery began producing diesel and jet fuel in January 2024, with gasoline production starting in September 2024. This refinery, with a capacity of 650,000 barrels per day, aims to meet Nigeria's entire domestic fuel demand and export surplus refined products.In December 2024, Seplat Energy completed a $1.28 billion acquisition of ExxonMobil's onshore oil and gas assets, significantly expanding its portfolio with 11 oil blocks, 48 oil and gas fields, three export terminals, and five gas processing facilities.
Shell sold its onshore operations in Nigeria to indigenous companies for $2.4 billion, ending nearly a century of operations and marking a trend of international companies divesting onshore assets.
In April 2025, Nigeria announced plans to establish a national strategic petroleum products stockpile to safeguard against global supply disruptions and ensure energy security.
In December 2024, the Warri Refining & Petrochemicals Company resumed operations after major maintenance, aiming to contribute to refining capacity and reduce dependence on imports, though challenges remain for full efficiency.
Nigeria’s oil and gas sector is transforming with increased indigenous participation and reduced reliance on international majors.
The Dangote Refinery is pivotal in boosting domestic refining capacity and reducing fuel imports.
Seplat Energy’s acquisition positions it as a leading domestic operator with enhanced production capacity.
Shell’s exit highlights challenges international companies face in Nigeria’s onshore sector.
The petroleum products stockpile initiative demonstrates Nigeria’s commitment to energy security.
Revitalizing refineries like Warri is key to reducing Nigeria’s dependence on imported refined products.
Indigenous firms are expanding across upstream, midstream, and downstream sectors, diversifying the industry.
Regulatory reforms and government support remain crucial for addressing challenges such as infrastructure and security.
Nigeria’s gas sector holds growth potential but requires infrastructure development for domestic and export markets.
The evolving sector presents significant investment and partnership opportunities amid a dynamic energy landscape.
Nigeria Oil and Gas Market Report Scope
The "Nigeria Oil and Gas Strategic Analysis and Outlook to 2032" is an all-encompassing report that delivers a full-spectrum evaluation of the nation’s oil and gas value chain—from exploration and production fields, refinery and LNG plant operations, to midstream pipelines and storage infrastructure in Nigeria. Leveraging robust methodologies and proprietary databases, the study provides detailed asset-level data, historic and forecasted supply-demand trends (2015–2032), and a clear understanding of how recent developments, government policies, and market dynamics shape the sector. The Nigeria Oil and Gas report equips industry stakeholders with actionable insights for investment, benchmarking, and strategic planning by profiling operational assets, new projects, and the competitive landscape across upstream, midstream, and downstream segments.
Comprehensive market analytics are complemented by SWOT and investment opportunity analysis, highlighting growth drivers, operational risks, sector-specific challenges, and capital requirements. The study evaluates key companies’ strategies, performance, and market positions, providing an integrated view of where opportunities and bottlenecks exist. The scope extends to Nigeria field-wise production, refinery-wise capacity, LNG terminal operations (including liquefaction and regasification units), and product flows through pipelines and storage. The research not only answers core market questions but also uncovers the evolving dynamics that will influence the future trajectory of Nigeria country’s oil and gas industry.
- Nigeria Asset-by-asset data covers all existing and upcoming oil and gas fields, refineries, LNG terminals, pipelines, and storage facilities, providing a granular view of national infrastructure.
- Historic and projected supply-demand analysis for crude oil, natural gas, and key refined products (gasoline, diesel, LPG, fuel oil, etc.) from 2015 to 2032.
- Recent developments, regulatory changes, and major project announcements are analyzed for their impact on market fundamentals and investment climate.
- Segmented insights into upstream (exploration and production), midstream (pipelines, LNG, storage), and downstream (refining, distribution) operations.
- Comprehensive overview of LNG sector including liquefaction and regasification terminals, contracted versus available capacity, and future outlook.
- Nigeria Oil and Gas Industry SWOT analysis and sector-wise benchmarking to evaluate industry strengths, challenges, opportunities, and potential risks.
- Nigeria Investment analysis detailing sector growth potential, required capital for new projects, and feasibility of ongoing and planned developments.
- Competitive landscape profiling of leading companies, with business strategies, operational performance, and market shares.
- Infrastructure benchmarking by market concentration in pipelines, refining, LNG, and storage segments, including capacity and utilization rates.
- Answers to key market questions, including evolving Nigeria supply-demand dynamics, project status, leading market participants, and the future outlook for capacity, trade, and investment.
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FAQ's
The Nigeria Oil and Gas report provides comprehensive intelligence from upstream to downstream—covering exploration blocks, field-level production, refinery operations, LNG terminals, and supply-demand analytics. It empowers executives and investors with actionable insights to assess risks, evaluate opportunities, and optimize Nigeria market entry or expansion strategies.
Yes, the report presents detailed data and analysis for all relevant segments present in the country—whether upstream (exploration and production), midstream (LNG terminals, storage facilities, pipelines), or downstream (refineries). This sector-specific granularity ensures accurate benchmarking, planning, and forecasting tailored to the Nigeria oil and gas infrastructure.
With detailed coverage of exploration opportunities, trade contracts, regulatory frameworks, and infrastructure projects, the Nigeria oil and gas report serves as a critical tool for stakeholders formulating investment strategies, negotiating partnerships, or aligning with national energy policies.
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