2019 Oil & Gas Downstream Industry Report


The Nigerian Downstream segment of the Oil & Gas industry has witnessed a lull in recent years. Factors inhibiting growth within the industry centre around import constraints and cost unreflective pump prices- particularly for premium motor spirit (PMS) which accounts for over two-thirds of white fuel consumption. This is in addition to constrained access to credit from financial institutions given the weak financial condition of operators (particularly independent marketers), who are burdened by soaring receivables from the Federal Government of Nigeria under the Petroleum Support Fund program. Pricing of products remains a top subject, not just in Nigeria, but globally, largely driven by demand pressures vis-à-vis the ability to refine crude oil, supply dynamics of refined products and regulatory peculiarities.   The 2019 report includes:

  • An overview of the global oil & gas downstream segment
  • Insights into the size and structure of the segment including recent developments and the impact of the macroeconomic environment on the segment
  • Demand and supply trends across various states of the country
  • Insights into the segment’s regulatory environment and opinions on anticipated policy changes
  • An assessment of the segment’s financial condition and select operators based on recent performance indicators
  • A review of competitive activity within the segment
  • Key strengths and weaknesses
  • An outlook for the segment and its risk rating

The report focuses on the marketing and distribution of white fuels – particularly petrol, diesel, household kerosene, aviation fuel and liquified petroleum gas – in Nigeria, alongside the recent market developments, regulatory changes and key factors impacting financial performance.

A wide audience range was considered in preparing this report, inclusive of

  • Bankers and financiers who wish to assess the creditworthiness of the segment
  • Analysts, investors and other users of financial information who require a good understanding of the segment
  • Industry operators who seek to keep abreast of key developments in the segment
  • Industry regulators and policymakers seeking to understand contemporary issues in the segment