The Nigeria oil and gas market attained a volume of 1.37 MMT in 2024 . Rising indigenous participation and local content development, spurred by the country’s Petroleum Industry Act, attract private investments, boosting upstream output and infrastructure growth across marginal oil fields and gas processing zones. As a result, the market is expected to grow at a CAGR of 5.30% during the forecast period of 2025-2034 to reach a volume of 2.30 MMT by 2034 .
The Nigerian market is continuously growing due to renewed investments, reforms initiated by the government, and rising global interest. The Petroleum Industry Act (PIA), enacted in 2021, has been a major turning point, streamlining governance and providing fiscal clarity to attract further foreign investments. According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the country recorded over USD 10 billion in new oil and gas investments by mid-2024, indicating the significant growth in the market.
Moreover, the Nigerian National Petroleum Company Limited (NNPCL) has transitioned into a fully commercial entity. This move, completed in July 2022, has opened up several opportunities for strategic partnerships, notably with Daewoo and ENI, to expand refinery capacity and optimise liquefied natural gas (LNG) output, thereby accelerating the Nigeria oil and gas market development. As a result, the country’s oil production, which dipped to 1.2 million barrels per day in 2022 due to pipeline vandalism and theft, is rebounding with a target of 1.7 million barrels per day in 2025.
Additionally, the Decade of Gas initiative, launched by the government, aims to leverage the country’s 206 trillion cubic feet of proven gas reserves for industrial and export purposes. This has been another key motivator of the Nigeria oil and gas market growth. The Nigeria-Morocco Gas Pipeline, a USD 25 billion project, has garnered further support from ECOWAS, reinforcing Nigeria’s ambition to become West Africa’s gas powerhouse.
Regulatory Overhaul via the Petroleum Industry Act (PIA)
The enactment of the PIA has significantly reshaped the Nigeria oil and gas market dynamics. The act has separated commercial operations from regulations, making NNPCL a profit-driven entity. As of early 2024, NNPCL has signed over 20 new partnerships, including one with Afreximbank worth USD 3 billion to stabilise crude oil supply. This reform has driven investor confidence, reduced bottlenecks, and ensured higher revenue retention for the federal government.
Offshore oilfields, particularly in deepwater zones, are rapidly boosting growth in the Nigeria oil and gas market. Projects like TotalEnergies’ Egina field, producing over 200,000 barrels/day, have shifted focus to high-volume operations. As per industry reports, Nigeria earned over USD 4.2 billion in offshore royalties in 2023. Offshore assets tend to offer longer production life. Hence, with improved terms under the PIA and clearer JV structures, offshore projects are being fast-tracked.
The downstream gas sector is also contributing to the Nigeria oil and gas market revenue with aggressive investment in storage, pipelines, and export terminals. For example, Nigeria Gas Infrastructure Company (NGIC) has committed over USD 1 billion to expand the Escravos-Lagos pipeline and complete the OB3 line. The surge in CNG stations, with over 150 planned under the Presidential CNG Initiative, is also spurring retail demand. Nigeria is also finalising gas swap agreements with Morocco and Ghana, opening new regional trade routes.
Moreover, Nigeria oil and gas companies are also exploring power-generation synergies with gas to tap the country’s 5GW energy deficit. Additionally, partnerships with indigenous oil firms are becoming crucial for accessing licenses and navigating complex regulatory terrains. With government-backed reforms creating an enabling environment, companies focused on innovation, infrastructure, and compliance are well-positioned to grow in the market landscape.
Other key players in the market are Lekoil Nigeria Limited, Sterling Oil Exploration & Energy Production Co. Ltd., Pinnacle Oil and Gas Company Limited, CNOOC International Ltd., and Eni S.p.A., among others.
The Nigerian market is continuously growing due to renewed investments, reforms initiated by the government, and rising global interest. The Petroleum Industry Act (PIA), enacted in 2021, has been a major turning point, streamlining governance and providing fiscal clarity to attract further foreign investments. According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the country recorded over USD 10 billion in new oil and gas investments by mid-2024, indicating the significant growth in the market.
Moreover, the Nigerian National Petroleum Company Limited (NNPCL) has transitioned into a fully commercial entity. This move, completed in July 2022, has opened up several opportunities for strategic partnerships, notably with Daewoo and ENI, to expand refinery capacity and optimise liquefied natural gas (LNG) output, thereby accelerating the Nigeria oil and gas market development. As a result, the country’s oil production, which dipped to 1.2 million barrels per day in 2022 due to pipeline vandalism and theft, is rebounding with a target of 1.7 million barrels per day in 2025.
Additionally, the Decade of Gas initiative, launched by the government, aims to leverage the country’s 206 trillion cubic feet of proven gas reserves for industrial and export purposes. This has been another key motivator of the Nigeria oil and gas market growth. The Nigeria-Morocco Gas Pipeline, a USD 25 billion project, has garnered further support from ECOWAS, reinforcing Nigeria’s ambition to become West Africa’s gas powerhouse.
Key Trends and Developments
May 2024
Seplat Energy Plc announced a drilling programme for 2024 to deliver 13 new oil and gas wells across its operated and non-operated assets. Three of the new wells, Ovhor-22, Sapele-38, and OBEN KIKB-02 highlight the potential of the oil and gas market in Nigeria. Seplat’s 2024 drilling rollout signals upstream confidence and asset monetisation potential, supporting indigenous capacity-building and stabilising Nigeria’s short-to-mid-term crude and gas supply outlook.March 2024
Savannah Energy invested USD 60 million to acquire full control of Stubb Creek in Nigeria, following agreements with Chinese and Nigerian players. This acquisition underscores the competitive landscape and the growing interest of international players in Nigeria oil and gas market.March 2024
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the New Energy Transfer Group from Poland partnered to develop sustainable energy solutions. The collaboration focuses on areas such as solar, wind, and bioenergy, as well as energy storage and distribution. This cross-border collaboration reflects Nigeria’s dual-track strategy, expanding hydrocarbons while laying groundwork for energy transition investment and regulatory harmonisation.February 2024
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigeria Data Protection Commission (NDPC) partnered to enhance data management and protection in the oil and gas sector. The alliance to strengthen data governance boosts investor confidence, ensuring secure, traceable, and compliant data flows essential for upstream audits and production-sharing agreements.Regulatory Overhaul via the Petroleum Industry Act (PIA)
The enactment of the PIA has significantly reshaped the Nigeria oil and gas market dynamics. The act has separated commercial operations from regulations, making NNPCL a profit-driven entity. As of early 2024, NNPCL has signed over 20 new partnerships, including one with Afreximbank worth USD 3 billion to stabilise crude oil supply. This reform has driven investor confidence, reduced bottlenecks, and ensured higher revenue retention for the federal government.
Gas Sector Transformation and Domestic Utilization
The Nigeria oil and gas market is undergoing a dynamic transformation, with the goal of leveraging its massive natural gas reserves to generate economic growth. Initiatives such as the National Gas Expansion Programme (NGEP) aim to increase the use of gas for power generation, industrial use, and household consumption. According to data from the Nigerian National Petroleum Corporation (NNPC), domestic gas usage rose from 700 million standard cubic feet per day (MMSCFD) in 2020 to 1.2 billion MMSCFD in 2023. The government further aims to minimise gas flaring by lowering the flare rate from 22% in 2020 to 10% by 2025.Expansion of Domestic Refining Capacity
The Dangote Refinery, Africa’s largest single-train refinery with a 650,000 barrels/day capacity, has significantly impacted the Nigeria oil and gas market value. This refinery is expected to reduce the country’s reliance on fuel imports to a considerable extent. Such a development supports backward integration and reduces subsidy losses. Furthermore, modular refineries in Bayelsa and Rivers states are scaling up output with government incentives. According to the Ministry of Petroleum Resources, these domestic units are anticipated to add 200,000 barrels/day processing capacity by 2026.Surge in Gas Commercialization Projects
The ongoing Decade of Gas policy is witnessing momentum through aggressive FID approvals. The Ajaokuta-Kaduna-Kano (AKK) pipeline, currently 70% completed, is expected to supply gas to key northern industrial hubs. The Nigeria LNG Train 7 project, a USD 5 billion expansion, is another highlight that has considerably widened the Nigeria oil and gas market scope. This project is expected to boost export capacity by 35%. Such efforts place the country on a lucrative trajectory to monetise its massive reserves while meeting both domestic power and export goals.Infrastructure Security and Technological Upgrades
Infrastructure security and technological upgrades have been a key trend in the market. New strategies combining surveillance drones, pipeline monitoring AI, and collaboration with the Tantita Security Services, contracted by NNPCL, have yielded notable results in terms of combatting oil theft and pipeline vandalism. Between 2022 and 2023, Nigeria, as per industry reports, saved over 100,000 barrels/day from theft. The deployment of real-time data systems is also improving flow assurance and asset tracking. Additionally, the upcoming USD 2.8 billion OB3 gas pipeline is being built with tamper-proof coating and smart sensors to curb illegal tapping.Nigeria Oil and Gas Industry Segmentation
The report titled “Nigeria Oil and Gas Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:Market Breakup by Extraction
- On-Shore
- Off-Shore
Market Breakup by Type
- Downstream Oil
- Breakup by End Use Transportation Agriculture, Public and Commercial Services Industrial Energy Use Household Energy Use
- Downstream Gas
- Breakup by End Use Transportation Agriculture, Public and Commercial Services Industrial Energy Use Household Energy Use
Nigeria Oil and Gas Market Share
On-Shore Extraction Operations Account for the Dominant Share of the Market
On-shore fields remain the key extraction category in the market. Despite legacy challenges like community unrest, companies like Seplat and NNPCL are investing in digital oilfield solutions to drive recovery rates. The OML 13 project by NNPCL and Sterling Oil, targeting 100,000 barrels/day, has sustained the dominance of these operations in the market. Additionally, onshore assets benefit from easier logistics and lower development costs compared to offshore ventures.Offshore oilfields, particularly in deepwater zones, are rapidly boosting growth in the Nigeria oil and gas market. Projects like TotalEnergies’ Egina field, producing over 200,000 barrels/day, have shifted focus to high-volume operations. As per industry reports, Nigeria earned over USD 4.2 billion in offshore royalties in 2023. Offshore assets tend to offer longer production life. Hence, with improved terms under the PIA and clearer JV structures, offshore projects are being fast-tracked.
By Type, Downstream Oil Occupy the Substantial Share of the Nigeria Oil and Gas Market
Downstream oil holds the major share of the market revenue as it plays a key role in refining, distributing, and marketing oil products. The downstream oil category comprises all of the critical infrastructure related to refineries, depots, pipelines, and retail outlets that provide fuel and other oil produced products around the country. Downstream oil's dominance is also driven by its pivotal role in the supply of energy and the circulation of the economy, depending on utility of energy for commercial purposes, including transport and power generation.The downstream gas sector is also contributing to the Nigeria oil and gas market revenue with aggressive investment in storage, pipelines, and export terminals. For example, Nigeria Gas Infrastructure Company (NGIC) has committed over USD 1 billion to expand the Escravos-Lagos pipeline and complete the OB3 line. The surge in CNG stations, with over 150 planned under the Presidential CNG Initiative, is also spurring retail demand. Nigeria is also finalising gas swap agreements with Morocco and Ghana, opening new regional trade routes.
Competitive Landscape
Most of the leading Nigeria oil and gas market players like Seplat and Waltersmith are scaling up modular refineries and brownfield operations, while IOCs such as TotalEnergies and Shell are doubling down on offshore and gas-centric assets. Areas of focus include digital oilfields, ESG compliance, and gas infrastructure. The introduction of the Midstream & Downstream Gas Infrastructure Fund (MDGIF) is opening up opportunities for midstream financiers.Moreover, Nigeria oil and gas companies are also exploring power-generation synergies with gas to tap the country’s 5GW energy deficit. Additionally, partnerships with indigenous oil firms are becoming crucial for accessing licenses and navigating complex regulatory terrains. With government-backed reforms creating an enabling environment, companies focused on innovation, infrastructure, and compliance are well-positioned to grow in the market landscape.
Exxon Mobil Corporation
Exxon Mobil Corporation is a leading natural gas company which caters to the energy demands of various sectors across the world. This company discovers, produces, and sells crude oil, natural gas, petroleum products, and various oil and gas-related resources. It was founded in the year 1999 and is headquartered in Texas, United States.Total Energies SE
Total Energies SE is a petroleum company which explores and produces oil and gas, renewable energies, bio-energies, electricity, refining and petrochemicals, speciality chemicals, and trading and shipping services, among others. The company was established in the year 1924 and is currently headquartered in Courbevoie, France.Shell Plc
Shell Plc, established in 1907 and headquartered in London, is a key player in Nigeria’s oil and gas market. Through Shell Petroleum Development Company (SPDC), it leads in offshore exploration, gas projects, and infrastructure development across the country.Nigerian National Petroleum Corporation
Nigerian National Petroleum Corporation is based in Abuja, Nigeria. The company was founded in the year 1977 and currently is one of the largest oil producers and suppliers in Africa. The services offered by the company include upstream and downstream oil and gas products, gas and power, new energy, and non-energy services, among others.Other key players in the market are Lekoil Nigeria Limited, Sterling Oil Exploration & Energy Production Co. Ltd., Pinnacle Oil and Gas Company Limited, CNOOC International Ltd., and Eni S.p.A., among others.
Key Highlights of the Nigeria Oil and Gas Market Report:
- Historical performance and accurate forecasts through 2034, built on market-specific indicators like refinery turnaround cycles and policy reform implementation windows.
- Insights into exploration innovations including 3D seismic imaging and deepwater FPSO (Floating Production Storage and Offloading) technologies.
- In-depth competitive landscape profiling key players such as Seplat Energy, TotalEnergies Nigeria, and the Nigerian National Petroleum Company Ltd.
- Regional analysis identifying new growth opportunities in Anambra Basin, Benue Trough, and offshore fields near Niger Delta.
- Expertise rooted in energy-sector-specific intelligence from analysts who understand complex onshore and offshore dynamics unique to West Africa.
- Data narratives tailored to EPC contractors, midstream firms, commodity traders, and policy stakeholders operating in volatile regulatory environments.
- Rigorous methodology combining market modelling, field insights, and verified secondary research drawn from DPR bulletins and IOCs’ project disclosures.
- Strategic forecasting calibrated to oil revenue benchmarks, gas flaring reduction targets, and CAPEX timelines of active PSCs (Production Sharing Contracts).
Call to Action
Explore the latest trends shaping the Nigeria oil and gas market 2025-2034 with our in-depth report. Gain strategic insights, future forecasts, and key market developments that can help you stay competitive. Download a free sample report or contact our team for customised consultation on Nigeria oil and gas market trends 2025 .More Insights On:
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1 Executive Summary
2 Market Overview and Stakeholder Insights
3 Economic Summary
4 Country Risk Profiles
5 Middle East and Africa Downstream Oil and Gas Market Overview
6 Nigeria Oil and Gas Market Overview
7 Nigeria Upstream Oil Market Overview
8 Nigeria Midstream Oil and Gas Market Overview
9 Nigeria Downstream Oil and Gas Market Overview
10 Market Dynamics
11 Trade Data Analysis (HS Code - 271, 2711)
12 Competitive Landscape
Companies Mentioned
- Exxon Mobil Corporation
- Total Energies SE
- Shell Plc
- Nigerian National Petroleum Corporation
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 125 |
| Published | July 2025 |
| Forecast Period | 2023 - 2028 |
| Estimated Market Value in 2023 | 1.37 MMT |
| Forecasted Market Value by 2028 | 1.77 MMT |
| Compound Annual Growth Rate | 5.0% |
| Regions Covered | Nigeria |
| No. of Companies Mentioned | 4 |
