2024 Oil and Gas Servicing Industry Report

Overview of the Report

Nigeria’s oil and gas industry, once a pivotal pillar of the economy, is currently confronting formidable challenges. Despite the recent recovery in global oil prices, the sector continues to struggle with chronic underperformance. Rampant oil theft, vandalism, and persistent insecurity have significantly impeded production, preventing Nigeria from achieving its OPEC quotas or budgetary targets. As a result, upstream investment has sharply declined, with companies redirecting capital to more stable regions. Between 2014 and 2022, Nigeria’s upstream capital expenditure plummeted from $27 billion to $6 billion. The country attracted a mere 5% of Africa’s gas investments, despite holding 33% of the continent’s reserves.

However, recent reforms, including executive orders designed to stimulate investment and the launch of the Dangote Refinery, present potential growth opportunities. Although a modest increase in revenue for service companies is anticipated, profitability remains under pressure due to escalating operational costs and fierce competition. To fully realize the sector’s potential, effective management and strategic oversight will be essential.

This report includes;

  • A comprehensive overview of the Industry
  • Relevant industry data and forecasts
  • A highlight of recent developments in the Industry
  • A review of the competitive landscape
  • An overview of the regulatory environment
  • A SWOT analysis of the Industry

We believe the information, analyses and opinions contained in this report will prove indispensable to;

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