Nigeria Oil And Gas Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

The Nigeria Oil and Gas Market Report is Segmented by Sector (Upstream, Midstream, and Downstream), Location (Onshore and Offshore), and Service (Construction, Maintenance and Turn-Around, and Decommissioning). The Market Sizes and Forecasts are Provided in Terms of Value (USD).

Geographical Region

Nigeria Oil And Gas Market Size and Share

Market Overview

Study Period 2020 - 2030
Base Year For Estimation2024
Forecast Data Period2025 - 2030
Market Size (2025)USD 8.25 Billion
Market Size (2030)USD 10.22 Billion
Growth Rate (2025 - 2030)4.38 % CAGR
Market ConcentrationHigh

Major Players

Major players in Nigeria Oil And Gas industry

*Disclaimer: Major Players sorted in no particular order

Nigeria Oil And Gas Market (2025 - 2030)
Mordor Intelligence Logo

Nigeria Oil And Gas Market Analysis by Mordor Intelligence

The Nigeria Oil And Gas Market size is estimated at USD 8.25 billion in 2025, and is expected to reach USD 10.22 billion by 2030, at a CAGR of 4.38% during the forecast period (2025-2030).

Nigeria’s 37.5 billion barrels of proven crude reserves and 209.26 trillion cubic feet of proven gas reserves anchor long-term supply security, while the Petroleum Industry Act (PIA) lowers fiscal uncertainty and unlocks fresh upstream spending.[1]Editorial Team, “Nigeria Passes Petroleum Industry Act,” AllAfrica, allafrica.com The ramp-up of the 650,000-barrels-per-day Dangote refinery reduces reliance on imported products, spurs domestic crude demand, and cuts foreign-exchange outflows by an estimated USD 15 billion per year. Ongoing divestments by international oil companies (IOCs) are accelerating the rise of agile local operators who quickly monetize acquired assets and deploy digital oilfield technology to increase recovery rates and reduce methane losses. Nonetheless, persistent militancy, pipeline vandalism, and foreign-exchange scarcity inflate operating costs and temper near-term production gains.

Key Report Takeaways

  • By sector, upstream operations held 75.2% of the Nigeria oil and gas market share in 2024 and are projected to register the fastest 6.1% CAGR through 2030.
  • By location, offshore activities accounted for 66.9% of Nigeria's oil and gas market size in 2024, while onshore operations lag and face the steepest security-driven cost pressures, with a 4.9% CAGR outlook.
  • By service, construction dominated the Nigerian oil and gas market with a 55.5% share in 2024, whereas decommissioning is expected to advance at the highest 7.3% CAGR over the forecast period.

Segment Analysis

By Sector: Upstream Dominance Drives Market Expansion

Upstream activities captured 75.2% of Nigeria's oil and gas market share in 2024, as high-impact drilling and workovers ramped up after fiscal reforms. This segment is projected to clock the fastest 6.1% CAGR, adding substantial barrels that support the growth of the Nigerian oil and gas market size. January 2025 production of 1.53 million barrels per day marked the first on-quota performance in years, aided by digital well-surveillance tools that cut unplanned downtime by 15%. Midstream gas processing rose in tandem with ANOH and other capacity additions, creating a clearer pathway for flare capture and power-sector delivery. Downstream moves center on Dangote's refinery, which absorbs local crude and triggers fresh tank-farm and jetty construction, boosting EPC revenues.

Upstream momentum reflects a wave of indigenous takeovers of IOC divested assets, most notably Seplat's purchase of ExxonMobil's onshore portfolio and Oando's acquisition of Nigerian Agip blocks. These transfers often include sizeable abandoned-well inventories, prompting operators to budget decommissioning funds as mandated under PIA abandonment rules. Digital asset-loss controls, such as NUPRC's Advance Cargo Declaration system, help stem crude theft by enabling real-time verification of shipments. Meanwhile, the Cost Efficiency Incentive program offers tax credits to operators who deliver barrel-lifting costs below USD 20, thereby stimulating the broader adoption of predictive maintenance and downhole analytics.

Nigeria Oil And Gas Market: Market Share by Sector

Note: Segment shares of all individual segments available upon report purchase

By Location: Offshore Operations Lead Market Growth

Offshore fields accounted for 66.9% of Nigeria's oil and gas market revenues in 2024 and are forecast to grow at a healthy 4.9% CAGR to 2030, underpinning further gains in the overall Nigerian oil and gas market size. Deepwater blocks avoid onshore militancy, drawing sustained IOC capital for high-volume projects. Regulatory approval for the country's first floating LNG (FLNG) unit in OML 104 underscores offshore gas monetization potential and aligns with global LNG supply tightness. Subsea compression and high-integrity pipeline designs reduce maintenance interventions, thereby cutting life-of-field costs despite the complexity of deepwater operations.

Onshore operations remain cost-competitive in terms of capital expenditure, yet they frequently suffer from downtime due to vandalism and spills. Indigenous firms now dominate these blocks after securing asset divestments; they hedge security risk through community-based surveillance contracts and bunker-proofed pipeline segments. Shallow-water assets act as a bridge between the two extremes, balancing security exposure and cost. PIA royalty-rebate schemes for frontier basin exploration incentivize new seismic shoots in under-explored offshore zones such as the Dahomey Basin, potentially broadening Nigeria's production geography over the long term.

By Service: Construction Leads While Decommissioning Accelerates

Construction accounted for 55.5% of total service spending in 2024, driven by megaprojects such as LNG Train 7 and the Ajaokuta-Kaduna-Kano gas pipeline, thereby solidifying the Nigeria oil and gas market's size on the services side. EPC contractors meet a 55% local-content threshold on engineering person-hours, spurring the flow stationsgrowth of indigenous fabrication yards in Port Harcourt and Lagos. The downstream build-out—centered on Dangote, BUA, and a wave of modular refineries—creates follow-on demand for storage terminals, jetty upgrades, and product pipelines.

Decommissioning, however, is the fastest-growing service niche, with a 7.3% CAGR, as legacy wellheads and flow stations reach the end of their life. The PIA mandates annual escrow contributions and full abandonment plans, forcing acquirers of onshore and shallow-water assets to front-load retirement liabilities. Chevron's 2025 plug-and-abandon campaign signals a step-change in spending on well plugbacks and site remediation. Digital-twin models aid in cost estimation and scheduling, while ROV-assisted cutting tools reduce offshore campaign duration. Maintenance and turnaround activities hold steady because operators seek incremental recoveries from brownfields before irreversible shutdown.

Nigeria Oil And Gas Market: Market Share by Service

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

The Niger Delta remains the production heartland, accounting for more than 90% of the nation's output through a blend of mature onshore clusters and prolific offshore blocks. Rivers State hosts Nigeria LNG’s six-train complex and the upcoming Train 7, making it the epicenter of LNG revenue and skilled-labor demand. Akwa Ibom is poised for heightened offshore attention once the UTM FLNG unit targets the Yoho field, potentially adding 2.8 million tonnes per year of export capacity. Meanwhile, Bayelsa and Cross River balance pipeline-vandalism risks with Host Community Trust funding, which channels 3% of operator spending into local infrastructure.

Lagos gains unprecedented downstream significance with the Dangote refinery cluster, positioning the state as a West African fuel hub and trimming inland freight costs. Its deepwater port and free-zone incentives attract tank-farm investors targeting regional re-exports. Northern Nigeria, historically absent from the hydrocarbon map, is set to receive its first gas flows via the Ajaokuta-Kaduna-Kano pipeline, catalyzing the development of industrial parks in Kano and Kaduna.

Federal oversight intensifies nationwide under NUPRC’s satellite-enabled metering audits, enhancing transparency across states. However, security interventions remain Delta-centric, reflecting the region’s outsized share of both production and risk exposure. Collectively, these geographic shifts reinforce Nigeria’s strategic intent to diversify its value-added centers while safeguarding its crude oil cash cows.

Reports are available across multiple geographies - Mordor Intelligence

Reports are available across multiple geographies.

Gain in-depth market insights across regions to support informed decisions.

Competitive Landscape

Mordor Intelligence Logo
Nigeria Oil and Gas Market Concentration

Market concentration is moderate, as the top five producers hold roughly 55% of the combined crude output, and this share is slipping as IOC divestments continue. Seplat’s USD 1.3 billion takeover of ExxonMobil’s shallow-water portfolio, Oando’s purchase of Nigerian Agip assets, and Chappal Energies’ acquisition of onshore TotalEnergies blocks exemplify a localized consolidation wave. Digital oilfield adoption distinguishes early movers: Seplat’s edge analytics platform lifted uptime by 12%, while Oando’s methane-detection rollout captured sales-grade gas once vented or flared.

NNPC Ltd. leverages its national champion status, partnering with Golar LNG on floating liquefaction and co-investing in new refinery projects to ensure crude placement security. International players continue to dominate the deepwater segment; TotalEnergies advanced the Ubeta gas field toward first gas by allocating USD 550 million in 2024, reinforcing its offshore commitment. EPC giants such as Saipem and Daewoo retain a foothold through LNG Train 7 and pipeline lots but now source more fabrication work locally to meet tightened content rules.

White-space opportunities cluster around FLNG, modular refining, and efficiency-linked tax incentives. Operators delivering lifting costs below USD 20 per barrel qualify for credits that can offset up to 20% of annual tax liabilities until 2035. Venture capital is slowly entering the mini-LNG and compressed natural gas distribution market, betting on demand from diesel-to-gas industrial conversions. These competitive vectors sharpen the strategic imperative to adopt technology, manage costs, and engage host communities credibly.

Nigeria Oil And Gas Industry Leaders

Dots and Lines - Pattern
1 Nigerian National Petroleum Corporation (NNPC)
2 Chevron Corporation
3 Exxon Mobil Corporation
4 TotalEnergies SE
5 Shell Plc

*Disclaimer: Major Players sorted in no particular order

Mordor Intelligence Logo

Recent Industry Developments

  • October 2025: In an effort to stimulate investments, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued an executive order.
  • June 2025: NNPC Ltd. and Golar LNG inked an FLNG deal to monetize stranded gas reserves offshore.
  • June 2025: The government launched a Cost Efficiency Incentive, granting tax credits to operators who achieve sub-benchmark lifting costs, valid through May 2035.
  • January 2025: Nigeria hit 1.53 million barrels per day, meeting its OPEC quota for the first time since 2020.

Table of Contents for Nigeria Oil And Gas Industry Report

1. Introduction

  • 1.1Study Assumptions & Market Definition
  • 1.2Scope of the Study

2. Research Methodology

3. Executive Summary

4. Market Landscape

  • 4.1Market Overview
  • 4.2Market Drivers
    • 4.2.1Abundant proven oil & gas reserves
    • 4.2.2Dangote mega-refinery boosting domestic processing
    • 4.2.3Petroleum Industry Act (PIA) unlocking fresh investments
    • 4.2.4Rising domestic gas demand for power & industry
    • 4.2.5IOC divestment creating space for agile indigenous firms
    • 4.2.6Digital oil-field & methane-detection adoption curbing losses
  • 4.3Market Restraints
    • 4.3.1Militancy, theft & pipeline vandalism
    • 4.3.2Persistent regulatory execution gaps post-PIA
    • 4.3.3Forex scarcity inflating equipment-import costs
    • 4.3.4ESG-driven capital flight from fossil projects
  • 4.4Supply-Chain Analysis
  • 4.5Regulatory Landscape
  • 4.6Technological Outlook
  • 4.7Crude-Oil Production & Consumption Outlook
  • 4.8Natural-Gas Production & Consumption Outlook
  • 4.9Installed Pipeline Capacity Analysis
  • 4.10Unconventional Resources CAPEX Outlook (tight oil, oil sands, deep-water)
  • 4.11Porter's Five Forces
    • 4.11.1Bargaining Power of Suppliers
    • 4.11.2Bargaining Power of Buyers
    • 4.11.3Threat of New Entrants
    • 4.11.4Threat of Substitutes
    • 4.11.5Industry Rivalry
  • 4.12PESTLE Analysis

5. Market Size & Growth Forecasts

  • 5.1By Sector
    • 5.1.1Upstream
    • 5.1.2Midstream
    • 5.1.3Downstream
  • 5.2By Location
    • 5.2.1Onshore
    • 5.2.2Offshore
  • 5.3By Service
    • 5.3.1Construction
    • 5.3.2Maintenance and Turn-around
    • 5.3.3Decommissioning

6. Competitive Landscape

  • 6.1Market Concentration
  • 6.2Strategic Moves (M&A, Partnerships, PPAs)
  • 6.3Market Share Analysis (Market Rank/Share for key companies)
  • 6.4Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Products & Services, and Recent Developments)
    • 6.4.1NNPC Ltd.
    • 6.4.2Shell plc
    • 6.4.3Chevron Corp.
    • 6.4.4Exxon Mobil Corp.
    • 6.4.5TotalEnergies SE
    • 6.4.6Seplat Energy plc
    • 6.4.7Dangote Petroleum Refinery
    • 6.4.8Oando plc
    • 6.4.9Conoil plc
    • 6.4.10Savannah Energy plc
    • 6.4.11Waltersmith Petroman Oil
    • 6.4.12Aiteo Eastern E&P
    • 6.4.13Eni (NAOC)
    • 6.4.14Addax Petroleum
    • 6.4.15Oriental Energy
    • 6.4.16ND Western
    • 6.4.17First E&P
    • 6.4.18Niger Delta Petroleum
    • 6.4.19BUA Refining & Petrochem.
    • 6.4.20Waltersmith Modular Refinery
    • 6.4.21Aradel Holdings (ex-NPDC)

7. Market Opportunities & Future Outlook

  • 7.1White-space & Unmet-Need Assessment

Nigeria Oil And Gas Market Report Scope

The oil and gas industry refers to the sector involved in the exploration, extraction, refining, transportation, and distribution of petroleum products, natural gas, and related resources. It encompasses various activities and processes that are essential for the production and utilization of hydrocarbon-based energy sources.

Nigeria's oil and gas market is segmented by sector. By sector, the market is segmented into Upstream, Midstream, and Downstream. The report offers the size and forecasts for the oil and gas markets in production volume for all the above segments.

Key Questions Answered in the Report

How large is Nigeria’s oil and gas sector in 2025?
The Nigeria oil and gas market size stands at USD 8.25 billion in 2025 and is projected to reach USD 10.22 billion by 2030.
What CAGR is forecast for Nigeria’s oil and gas through 2030?
The Nigeria oil and gas market is expected to log a 4.38% CAGR over 2025-2030.
Which segment holds the biggest share of Nigeria’s hydrocarbon value chain?
Upstream operations command 75.2% of total 2024 revenue and are also the fastest-growing segment at a 6.1% CAGR.
What role does the Dangote refinery play in Nigeria’s energy landscape?
The 650,000 barrels-per-day refinery cuts fuel imports by 60% and stimulates local crude demand, saving up to USD 15 billion in foreign exchange annually.
How significant is oil theft to Nigeria’s production losses?
Pipeline vandalism and theft cost more than USD 1 billion in lost revenue each year and affect up to 30% of onshore throughput.
What incentives encourage cost reductions in Nigerian upstream operations?
The 2025 Cost Efficiency Incentive grants operators tax credits worth up to 20% of tax liability for achieving lifting costs below benchmark levels.
Page last updated on:
Latest Case Studies
  • Energy & Power
    30th July

    Unlocking Market Potential for Solid-State Transformers


    3 Min Read

  • Home and Property Improvement
    27th May

    Strategic Expansion in the Russia Laundry Appliances Market


    3 Min Read

  • Home and Property Improvement
    9th June

    A Leading Sanitaryware Company’s Journey in Saudi Arabia


    4 Min Read

Dots and Lines - Pattern
CONTACT US

When decisions matter, industry leaders turn to our analysts. Let’s talk.

🌐Country code
down