The world is watching the oil and gas sector in Nigeria—a country that holds 37.5 billion bbl of proven crude reserves and 209 TCF of gas—as sweeping reforms and mega-projects reshape Africa’s largest energy market.
Overview of the Oil and Gas Sector in Nigeria
- Current output: 1.74 million bpd (crude plus condensate) as of January 2025, a 4% increase over the previous month and above OPEC’s 1.5 million bpd target.
- Government target: 2.1 mbpd by end-2025, supported by a doubling of active drilling rigs since 2021.
- Downstream leap: The 650 kbpd Dangote Refinery, now ramping up, is set to end decades of fuel imports and create surplus export capacity.
- Investment magnet: Reforms under the 2021 Petroleum Industry Act (PIA) and an executive order attracted US $17 billion in FDI during 2024 alone.
These figures position Nigeria as a pivotal supplier in a tight global crude market and a future gas powerhouse for Europe and Asia.
Key Drivers Reshaping the Oil and Gas Sector in Nigeria
1. Deep Regulatory Reform
- PIA 2021 streamlined royalties, host-community funds, and acreage licensing.
- May 2025 “Cost-Efficiency Incentives Order” offers up to 20 % tax credits for measurable cost savings, signaling lower lifting costs.
2. Infrastructure Build-Out
- AKK Gas Pipeline (614 km) on track for Q1 2025 completion—linking the Niger Delta to northern industrial hubs and CNG corridors.
- NLNG Train 7 adds 4.2 mtpa, expanding export capacity by 35 %.
3. Domestic Refining & Petrochemicals
The Dangote complex will cut import bills, free forex, and stabilize regional product supply once it hits full capacity.
Difficulties Confronting the Oil and Gas Sector in Nigeria
| Pain Point | Impact | 2025 Mitigation |
| Pipeline vandalism & sabotage | Output disruptions; security‐driven costs | Rivers State is under emergency control, and naval surveillance has been intensified. |
| Gas flaring (148.7 mmscfd H1 2024) | Lost revenue; 3.4 GW lost power potential | NGFCP auctions, stricter PIA penalties, methane guidelines. |
| Energy transition pressure | Capital flight from IOCs | Local independents filling gaps; Shell’s $5 bn Bonga North FID. |
New Chances in the Oil and Gas Sector in Nigeria
- Gas-to-Power & CNG mobility: Government aims to convert 1 million vehicles to CNG by 2028, slashing transport costs and emissions.
- Low-carbon investment: New methane-abatement guidelines and carbon-credit pathways align with global ESG funds.
- Licensing rounds: 36 deep-offshore & onshore blocks on auction with entry fees cut from US $200 m to $10 m.
Why Smart Logistics Matter More Than Ever
Nigeria’s vast geography, security hotspots, and project timelines mean every delayed rig move or stuck customs clearance directly erodes field economics. Integrated logistics—from multimodal freight to real-time inventory visibility—can shave operating costs by 10-15 %, dwarfing typical upstream margins.
How Ronish Nigeria Limited Streamlines Logistics for the Oil and Gas Sector in Nigeria
Ronish Nigeria Limited leverages best-in-class freight forwarding, customs brokerage, and supply chain analytics to cut average port-to-wellhead delivery times by up to 20 %. Our services include:
- End-to-End Project Cargo – heavy-lift modules, OCTG, and refinery skids.
- Regulatory Fast-Track – unmatched expertise navigating PIA compliance, cabotage waivers, and free-zone clearances.
- Real-Time Tracking & AI-Driven Route Optimisation – ensuring on-time arrival even in volatile Niger Delta terrain.
- Green Logistics Solutions – CNG-powered haulage and carbon footprint reporting to meet ESG targets.
Ready to Boost Efficiency?
Transform your supply chain today.
Call +234 8032314499 | info@ronishlogistics.com
To discover how Ronish Nigeria Limited can unlock faster, safer, and greener operations in the oil and gas sector in Nigeria.