Nigeria Oil and Gas Upstream Market Size (2024 - 2029)

Nigeria Oil and Gas Upstream Market Size Summary

The Nigerian oil and gas upstream market is poised for gradual growth over the forecast period, driven by a combination of governmental reforms and infrastructure developments. The sector, significantly impacted by the COVID-19 pandemic, is witnessing a recovery in demand and a push towards increased exploration and production activities. The government's focus on developing gas infrastructure is expected to commercialize flared gas and attract investments in underdeveloped reserves. Despite challenges such as political instability and corruption, the offshore segment is anticipated to dominate the market, supported by international investments and efforts to replace maturing production sites. The Nigerian government has initiated reforms, including the Petroleum Industry Bill, aimed at restructuring the sector and enhancing its attractiveness to investors.

Nigeria's strategic position as a major oil and gas producer in Africa is bolstered by its significant domestic and export potential. The country is investing heavily in gas infrastructure to become a regional export hub, targeting markets in Asia and other African countries. The domestic demand for gas, particularly from the power sector, presents further opportunities for growth, although challenges like inconsistent supply remain. The offshore industry, despite past declines, is expected to recover with new projects and investments, such as those by the China National Offshore Oil Corporation and TotalEnergies SE. The market is primarily dominated by government-owned entities, with private companies participating through joint ventures. The government's efforts to streamline operations and pass key legislation are expected to provide a clearer framework for market development, potentially boosting the sector's growth trajectory.