Nigeria Oil and Gas Downstream Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Nigeria Oil and Gas Downstream Market is segmented by Sector (Refining and Petrochemical).

Market Snapshot

Nigeria Oil and Gas Downstream Market Overview
Study Period: 2018- 2026
Base Year: 2020
CAGR: >1 %
Nigeria Oil and Gas Downstream Market Top Companies

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Market Overview

The Nigerian oil and gas downstream market is expected to register a CAGR of approximately around 1% during the forecast period of 2021 – 2026. The COVID-19 pandemic has affected the market severely, as the demand for refined petroleum products in the country decreased due to lockdown restrictions. Moreover, refinery and petrochemical projects also got delayed during Q1 and Q2 2020, owing to supply chain disruptions and travel restrictions across the world. However, an anticipated recovery in the refined petroleum products' demand and the government's plan to make the country a regional hub for refined petroleum products are expected to drive the market during the forecast period. However, the high volatility in crude oil prices is expected to restrain the growth of the market in the coming years.

  • The upcoming refinery projects are expected to drive the demand in the market during the forecast period.
  • The concept of small and modular refineries is gaining popularity in the country. This, in turn, is expected to create significant opportunities for the market players in the near future.
  • Improving the existing downstream infrastructure and encouraging private sector investment for the refineries and petrochemical plants are expected to drive the studied market during the forecast period.

Scope of the Report

The Nigerian oil and gas downstream market report includes:

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Key Market Trends

Refinery Segment to Dominate the Market

  • Nigeria is the second-biggest oil-rich country in Africa, after Libya. The country is estimated to hold 37 billion barrels of proven oil reserves. However, despite its rich resources, at present, Nigeria’s state-dominated oil industry is declining, afflicted by systemic corruption, starved for international investment, and hit hard by weak oil prices. Despite that malaise, oil remains the country’s chief source of income.
  • In 2019, the refineries around the Niger Delta region were producing around the 350,000 barrel per day capacity, with this figure increasing by 1.7% from 344,000 barrels per day. However, the throughput in the country has decreased severely to 7 thousand barrels a day in 2019, which is a cause of concern for years to come.
  • Thus, the government is actively looking to upgrade the existing refineries in the country. For instance, in November 2019, Nigeria’s government pledged to support Nigerian conglomerate Dangote Industries unit Dangote Oil Refining’s 650,000-b/d grassroots integrated refining and petrochemical complex now under construction in southwestern Nigeria’s Lekki Free Trade Zone.
  • Therefore, with the government support and increasing up-gradation activities, the refinery segment is expected to drive the studied market.
Nigeria Oil and Gas Downstream Market Latest Trends

Improving the Infrastructure and Encouraging Private Sector Investment to Drive the Market

  • Nigeria is one of the largest crude oil producers in the world, with an average daily output of about 2 million barrels per day. However, most of the fuel has to be refined outside the country. Therefore, the government is trying to reduce its dependence on refined oil while creating an oil export-led economy, especially in the African region, by reforming and investing in the sector.
  • The downstream sector is currently bogged down with numerous challenges, such as inappropriate product pricing, bridging product supply, insecurity, irregular gas supply, pipeline vandalism, inadequate pipeline infrastructure, non-functional/under-functioning refineries, etc.
  • Therefore, in February 2021, the Nigeria state oil company announced the privatization of the downstream industry, which would help the group repair and build more pipelines across the country. This is expected to be covered under Nigeria's long-awaited oil reform bill would privatize the Nigerian National Petroleum Company (NNPC). This is expected to aid the growth of downstream infrastructure in the coming years.
  • Moreover, the government is building new refinery infrastructure. For instance, in December 2019, the KBR group announced that it had been awarded the Project Management Consultancy Services contract by Nigerian National Petroleum Corporation (NNPC). Under the contract, KBR, as co-consultant with the National Engineering and Technical Company Ltd (NETCO), will provide technical consultancy services for four greenfield refineries in the ANOH and Western Forcados area.
  • Thus, the increasing privatization and new greenfield project are expected to drive the market during the studied period.
Nigeria Oil and Gas Downstream Market Growth Rate

Competitive Landscape

The Nigerian oil and gas downstream market is concentrated. Some of the major players operating in this market include Nigerian National Petroleum Corporation (NNPC), KBR Inc., NDEP PLC, Indorama Group, and Midoil Refining & Petrochemicals Company Limited.

Recent Developments

  • In September 2020, BUA Group announced a contract with Axens Group of France to provide a suite of technologies and other services for the conglomerate’s recently proposed project to build a grassroots integrated refining and petrochemical plant in Nigeria.
  • Dangote Oil Refinery Company (Dangote) is constructing an integrated refinery and petrochemical complex in the Lekki Free Zone near Lagos, Nigeria. The refinery is expected to be the world’s biggest single-train facility upon commissioning in 2021. Estimated to cost USD 18 billion, the refinery will produce Euro-V quality gasoline and diesel, as well as jet fuel and polypropylene.
  • In January 2021, the Nigerian government signaled its support for the Brass Fertiliser and Petrochemical Co.'s (BFPCL) 10,000 metric ton per day methanol plant with a final investment decision (FID).

Table of Contents


    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions




    1. 4.1 Introduction

    2. 4.2 Refining Capacity and Forecast, in million barrels per day, till 2026

    3. 4.3 Recent Trends and Developments

    4. 4.4 Government Policies and Regulations

    5. 4.5 Key Projects' Information

    6. 4.6 Market Dynamics

      1. 4.6.1 Drivers

      2. 4.6.2 Restraints

    7. 4.7 Supply Chain Analysis

    8. 4.8 PESTLE Analysis


    1. 5.1 Refining

    2. 5.2 Petrochemical


    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 Nigeria National Petroleum Corporation

      2. 6.3.2 KBR Inc.

      3. 6.3.3 Indorama Group

      4. 6.3.4 Midoil Refining & Petrochemicals Company Limited

    4. *List Not Exhaustive

**Subject to Availability

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Frequently Asked Questions

The Nigeria Oil and Gas Downstream Market market is studied from 2018 - 2026.

The Nigeria Oil and Gas Downstream Market is growing at a CAGR of >1% over the next 5 years.

NDEP plc, Indorama Group, KBR Inc., Midoil Refining & Petrochemicals Company Limited are the major companies operating in Nigeria Oil and Gas Downstream Market.

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