Nigeria is the 10th largest oil producer in the world and the third largest in Africa. This sector has been vibrant since the discovery of crude oil in 1956. it is on record that in 2016, the industry contributed in excess of 9% to the nation’s economy.
The bulk of Nigerian’s crude oil comes from several producing fields located in Niger Delta, Anambra State, Benue Trough, Chad Basin, and Benin. These products are exported through 7 terminals, and a number of floating production vessels. It is estimated that Nigeria has about 176 trillion cubic feet (TCF) of proven natural gas reserves.
According to data obtained from the National Bureau of Statistics (NBS), The Nigerian oil and gas sector attracted $821.23 million, which is about N303.855 billion foreign investments in 15 months, between January 2016 and March 2017, A further breakdown showed that in the second, third and fourth quarters of 2017, $200.39 million, $171.63 million and $327.30 million flowed into the Nigerian oil and gas sector
When compared with $20.83 million recorded in the first quarter of 2016, it showed that the value of foreign capital inflow into the oil and gas sector in the first quarter of 2017 appreciated by 385.26 percent at $101.08 million.It was stated by National Bureau of Statistics (NBS) that the total value of capital imported into Nigeria in the first quarter of 2017 was estimated to be $908.27 million.
To participate in the Nigerian oil and gas industry, it is advised that you understand the petroleum system that operates in the country, understand the law and seek advised.
For investment opportunities, companies with the technology can undertake turn around maintenance of refineries. Such ventures can start warehousing arrangements that will ensure continuity of supply at competitive prices.
A foreigner can also invest in product transportation and marketing associated with manufacturing and maintenance Lubricating Oil reprocessing, LPG bottles and accessories, oil cans reconditioning etc. A foreigner can invest in Small-scale production of chemicals and solvents e.g. chlorinated methane, Formaldehyde, Acetylene etc. from natural gas.
Other Investment opportunities in the downstream sector for the oil and gas industry in Nigeria include:
1. Establishment of processing plants and industries for the production of refined mineral oil; petroleum jelly and grease; damp proof building materials like roofing sheets, floor tiles, tarpaulin etc.
2. Domestic Production and Marketing of Liquefied Natural Gas (LPG).
3. Domestic Manufacturing of LPG cylinders, valves and regulators, installation of filling plants, retail distribution and development of simple, flexible and less expensive gas burners to encourage the use of gas instead of wood.
4. Establishment of chemical industries e.g. distillation units for the production of Naphtha and other special boiling point solvents used in food processing.
5. Linear Alkyl Benzene, Carbon Black and Polypropylene producing industries.
6. The Nigerian Liquified Natural Gas (NLNG) Projects.
7. Crude oil refining with efficient export facilities.
For more information, advise and consultation bothering on immigration issues, foreign investment and participation in the oil and gas or any other sector in Nigeria, contact:
5A Dozek Close,
Off Alternative Route,
Lekki, Lagos State, Nigeria.
TEL: +2348034869295, +2348020550410