Nigeria’s offshore oil and gas production market is projected to surge from $34.18 billion in 2023 to $47.03 billion by 2031, according to a new report by Research and Markets. The report, which forecasts a compound annual growth rate (CAGR) of 4.1%, highlights Nigeria’s key position as a major energy producer.
The Dublin-based firm, known for providing global market insights, revealed that Nigeria produced 552.84 million barrels of crude oil and condensate in 2023, underlining the country’s critical role in the global energy landscape. The report emphasized the dominance of crude oil, driven by strong demand from international markets, while the transportation sector captured the largest market share in 2023.
Additionally, the power generation segment is expected to grow at a CAGR of 5.7%, fueled by rising demand for natural gas in electricity production.
Major industry players such as TotalEnergies and Shell are at the forefront of driving market growth, employing strategies like mergers and acquisitions to enhance their market reach. The report also noted a shift toward offshore natural gas exploration, aligning with Nigeria’s national initiatives to bolster competitiveness, supported by the Petroleum Industry Act (PIA).
The Nigerian government has reaffirmed its commitment to creating a favorable business environment for energy investors. Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, emphasized that the government is working to address previous investment challenges, ensuring Nigeria remains a secure destination for energy investments.
