Last Updated: April 26, 2023   |   Next Update: May 2024   |  
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Overview

Table 1. Nigeria's energy overview, 2021
  Crude oil and other petroleum
liquids		 Natural gas Coal Nuclear Hydro Renewables and other Total
Primary energy consumption (quad Btu) 1.0 0.8 0.0 0.0   0.1 1.9
Primary energy consumption (percentage) 52% 44% 0% 0%   4% 100%
Primary energy production (quad Btu) 3.4 1.6 0.0 0.0   0.1 5.2
Primary energy production (percentage) 67% 32% 0% 0%   1% 100%
Electricity generation (TWh)   23.4   0.0 8.0 0.1 31.5
Electricity generation (percentage)   74%   0% 25% 0% 100%

Data source: U.S. Energy Information Administration, International Energy Statistics database
Note: We aggregate hydroelectricity and renewables as renewables and other for primary energy production and consumption. We aggregate crude oil and other petroleum liquids, natural gas, and coal fuel sources as fossil fuel-derived fuel sources for electricity generation. Quad Btu=quadrillion British thermal units, TWh=terawatthours

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  • Nigeria is a major hydrocarbons producer in Africa and its production is the mainstay of the countr’s economy. Oil and natural gas revenue is the country’s primary source of foreign exchange, and crude oil price changes noticeably affect its economy.
  • Nigeria holds the largest natural gas reserves on the continent and, according to BP’s estimates in its June 2022 Statistical Review of World Energy, it was ranked sixth globally among exporters of liquefied natural gas (LNG) in 2021.1
  • Although Nigeria is the leading oil producer in Africa, sporadic supply disruptions have affected production and resulted in unplanned outages in recent years. Since 2020, unplanned disruptions and less investment in upstream development led to a significant decline in crude oil production. in third-quarter 2022, Nigeria’s crude oil production briefly dropped below one million barrels per day (b/d) because of significant and extended disruptions stemming from crude oil theft and pipeline vandalism. These disruptions reduced crude oil production of Nigeria’s major crude oil grades, such as Bonny Light, Brass River, and Forcados. Although crude oil output largely returned to typical levels by first-quarter 2023, disruptions remain a significant and persistent downside risk to Nigeria’s production.2
  • Nigeria’s oil and natural gas industry is primarily located in the southern Niger Delta area, where it has been a source of conflict. Local groups seeking a share of the wealth often attack the oil infrastructure, forcing companies to declare force majeure on oil shipments (a legal clause that releases parties from contractual obligations because of circumstances beyond their control). At the same time, oil theft causes pipeline damage that is often severe, resulting in loss of production and in pollution. This damage also sometimes forces companies to shut in production. In addition, aging infrastructure and poor maintenance resulted in oil spills.
Figure 1. Map of Nigeria

Data source: U.S. Central Intelligence Agency, CIA World Factbook—Nigeria

Petroleum and other liquids

  • Nigeria held an estimated 37.1 billion barrels of proved crude oil reserves at the beginning of 2023.3 Nigeria produces mostly light, sweet (low sulfur) crude oil and most of this oil is exported to global markets (Table 2).4
Table 2. Selected crude oil grades produced in Nigeria
Crude oil grade API gravity number (degress) Sulfur content (percentage)
Agbami 47.2 0.05%
Akpo 45.8 0.07%
Amenam 37.0 0.17%
Bonga 29.1 0.29%
Bonny Light 34.5 0.14%
Brass River 36.5 0.13%
Erha 33.7 0.18%
Escravos 34.0 0.15%
Forcados 30.0 0.15%
Qua Iboe 36.6 1.60%
Usan 30.6 0.23%

Data source: McKinsey & Company’s Energy Insights
Figure 2. Total annual liquid fuels production and consumption in Nigeria, 2012-2021
figure data

Table 3. Major refineries in Nigeria
Refinery Location Notes Nameplate Capacity (barrels per day)
Kaduna refinery Kaduna state crude sourced from Escravos and Forcados terminals 110,000
Port Harcourt refinery I and refinery II Rivers state crude sourced from Escravos terminal 210,000
Warri refinery Delta state crude sourced from Bonny terminal 125,000
Dangote refinery Lagos state commissioning expected by end-2023 650,000
Total     1,095,000

Data source: PwC Nigeria, NS Energy Business

Natural gas

  • Nigeria held an estimated 206.5 trillion cubic feet (Tcf) of proved natural gas reserves at the beginning of 2023.10
  • Dry natural gas production in Nigeria averaged about 1.5 Tcf between 2012 and 2021, and dry natural gas consumption averaged 649 billion cubic feet (Bcf) over the same time period (Figure 3).11
Figure 3. Total dry annual natural gas production an consumption in Nigeria, 2012-2021
figure data

  • Significant amounts of natural gas production in Nigeria is either re-injected or flared. Some of Nigeria’s oil fields lack the infrastructure to capture the natural gas produced with oil, known as associated gas. According to the most recent data by the World Bank’s Global Gas Flaring Reduction Partnership (GGFR), Nigeria flared about 5.318 billion cubic meters (or 188 Bcf) of natural gas in 2022, making Nigeria the ninth-highest natural gas-flaring country in terms of annual natural gas-flaring volume.12
  • Nigeria has a gas-to-liquids (GTL) plant at Escravos with a nameplate capacity of 33,000 b/d that started production in mid-2014. The Escravos GTL plant is operated by Chevron (75%) in partnership with NNPC (25%). The Escravos GTL plant can convert about 475 million cubic feet per day (MMcf/d) of natural gas into diesel, liquefied petroleum gas (LPG), and naphtha products, primarily for export.13

Coal

  • According to our latest estimates, Nigeria held about 379 million short tons in coal reserves in 2022.14
  • Nigeria both produces and consumes relatively small amounts of coal. Between 2012 and 2021, the country averaged about 51,000 short tons of coal production, all of which was bituminous coal. Nigeria consumed an average of about 86,000 short tons of bituminous coal in the same time period and so needed to import coal to meet its domestic needs (Figure 4).15
Figure 4. Total coal production and consumption in Nigeria, 2012-2021
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Electricity

  • Nigeria mostly relies on fossil fuel-derived fuel sources for power generation, but the country also employs some hydropower to meet its electricity needs. In 2021, Nigeria had a total electricity capacity of 11.7 gigawatts (GW), only slightly higher than 9.1 GW in 2012. Nigeria generated about 31.5 gigawatthours (GWh) in 2021, and about 74% of that total was derived from fossil fuel sources and the remainder from hydropower (Figures 5 and 6).16
Figure 5. Nigeria's electricity capacity by fuel type, 2012-2021
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Figure 6. Nigeria's net electricity generation by fuel type, 2012-2021
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  • According to estimates by the World Bank, about 55% of Nigerian households had access to electricity in 2020, up from 48% in 2010. The disparity between urban and rural electrification rates are significant; 84% of residents in urban areas had access to electricity in 2020 (up from 80% in 2010), compared with about 25% of residents in rural areas (slightly up from 24% in 2010).
  • Nigeria’s electric power sector faces many challenges, such as poor and underdeveloped power infrastructure and high transmission and distribution losses. Even those with access to electricity deal with frequent electricity load-shedding events that result in blackouts. As a result, residents and businesses rely on costly oil-fired power generators or off-grid traditional biomass and waste to meet their energy needs.17
  • In 2022, the Nigerian government revealed its Energy Transition Plan, which outlines its strategy to reduce its carbon emissions across five key sectors (power, transport, oil and natural gas, cooking, and industry) to become carbon neutral by 2060. The Energy Transition Plan requires an estimated $1.9 trillion, or $410 billion above normal projected spending levels, to achieve this target. The government is seeking to raise funds to help implement this plan.18
  • According to the International Hydropower Association, Nigeria has natural resources that provide significant hydropower potential, but hydropower in the country is underdeveloped. The Nigerian government is seeking to build hydropower plants and increase its hydropower capacity to help the government better address domestic electricity needs.19 In November 2022, the Nigerian government invited bids for private investors to operate the 700-megawatt Zungeru hydropower plant, which is currently under construction and is slated to be completed in 2023. The Zungeru hydropower plant is the largest hydropower plant in Nigeria and is located on the Kaduna River in the Niger state, about 150 kilometers (113 miles) away from Abuja, the nation’s capital.20
  • Government support has grown for solar power projects that will increase access to electricity in remote and rural areas. In October 2022, the Nigerian government’s Rural Electrification Agency, with support from the United Nations Development Programme (UNDP) in Nigeria and the Global Environment Facility (GEF), launched the Africa Minigrids Program. This program supports solar mini-grid development and provides off-grid access and a cleaner and cheaper alternative to diesel power generators for end users.21

Energy trade

  • According to Vortexa’s estimates, Nigeria imports virtually no crude oil or lease condensates. Crude oil and lease condensate exports from Nigeria averaged about 1.9 million b/d between 2013 and 2022; however, crude oil and condensate exports significantly declined over the past decade. In 2022, these exports were about 776,000 b/d lower than the 10-year high of 2.1 million b/d. Nigeria’s declining production over the past decade is the primary factor driving these decreased exports (Figures 7 and 8).22
Figure 7. Nigeria's total annual exports of crude oil, 2013-2022
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Figure 8. Nigeria's crude oil and condensate exports by destination, 2022
figure data

  • Because Nigeria’s main state-owned refineries are currently offline as a result of long-term rehabilitation, Nigeria exports only a small amount of petroleum products, mainly liquefied petroleum gas and diesel or gasoil. Between 2019 and 2022, Nigeria exported an average of about 66,000 b/d of petroleum products; these exports originate from Nigeria’s small modular refineries, which generally have small capacities and lack complex refining capabilities. Nigeria imports substantially higher volumes of petroleum products; volumes averaged about 385,000 b/d between 2019 and 2022. Almost 90% of this volume was gasoline and its blending components, or diesel/gasoil products, which is used in the electric power and transportation sectors (Figures 9 and 10).23
Figure 9. Nigeria's total annual petroleum prodcts exports, 2019-2022
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Figure 10. Nigeria's total annual petroleum products imports, 2019-2022
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  • Nigeria does not import any natural gas, and it exports natural gas that is not consumed domestically. Nigeria exported an average of about 900 Bcf of natural gas from 2012–2021 (Figure 11).24
Figure 11. Nigeria's total annual natural gas exports, 2012-2021

  • Nigeria exports most of its natural gas as LNG. Both infrastructure and demand constraints are challenges to exporting significant natural gas volumes by pipeline to neighboring countries. According to BP’s 2022 Statistical Review of World Energy, Nigeria exported about 824 Bcf of natural gas in 2021, most of which went to Europe or Asia. France and Spain were the top European importers in 2021, receiving 123 and 152 Bcf of LNG from Nigeria, respectively. In Asia, China and India were the top importers in the region, receiving 74 and 71 Bcf of LNG from Nigeria, respectively (Figure 12).25
Figure 12. Nigeria's liquefield natural gas exports by destination, 2021

  • Nigeria has only one LNG terminal currently in operation and located at Bonny Island, which is also a major crude oil export hub. The Nigeria LNG (NLNG) terminal at Bonny Island began operations in 1999 and has six liquefaction trains operating, which has a total capacity of about 1.1 Tcf per year. Construction of a seventh train began in June 2021 and aims to finish by 2026. A 58 Bcf floating LNG terminal has been proposed by UTM Offshore, in partnership with NNPC, that would potentially take feedstock from the Yoho natural gas field, which is owned by ExxonMobil and NNPC; the project is currently under appraisal and has not reached a final investment decision (Table 4).26
Table 4. Nigeria's liquefied natural gas terminals
Project name Status Ownership Start date Number of storage tanks Nominal liquefaction capacity (billion cubic feet per year) Storage capacity (million cubic feet)
Nigeria LNG (NLNG) terminal   NNPC: 49%
Shell: 26%
Total Energies: 15%
Eni: 10%		   4   12
NLNG T1 - T2 Operating   T1: 1999
T2: 2000		   317  
NLNG T3 Operating   2002   158  
NLNG T4 - T5 Operating   2006   394  
NLNG T6 Operating   2008   197  
NLNG T7 Under construction   2026      
Total         1,066 12

Data source: GIIGNL 2022 Annual Report
  • The Nigerian government is seeking to expand its pipeline capacity domestically and across borders to increase both destinations and volumes of its natural gas exports. The Ajaokuta-Kaduna-Kano (AKK) pipeline is currently under construction and, once built, could transport natural gas from Ajaokuta and Abuja in central Nigeria to Kano state in northern Nigeria and provide natural gas feedstock for thermal power stations along its route. The AKK pipeline is scheduled for completion sometime in early 2023; however, whether the pipeline will be completed on time remains unclear.27 The pipeline is also part of the larger Trans-Nigeria Gas Pipeline (TNGP) project, which includes both the AKK pipeline and a proposed pipeline that aims to connect the Qua Iboe Terminal on the coast of southern Nigeria to Ajaokuta. The TNGP project is also part of a proposed larger, intraregional natural gas pipeline project called the Trans-Saharan Gas Pipeline (TSGP) project. The TSGP aims to transport natural gas from Nigeria to Algeria via Niger, which would provide an additional route for Nigeria to transport natural gas to Europe via Algeria’s own international pipeline network. The TSGP project is still being discussed at a ministerial level and still at a preliminary stage (Table 5).28
Table 5. Selected major natural gas pipelines in Nigeria
Pipeline name Status Ownership Route Start date Length of pipeline (miles) Pipeline capacity (billion cubic feet per year)
West African Gas Pipeline Operating Chevron, NNPC, Shell, Takoradi Power Company Ltd., Societe Togolaise de Gaz, Societe BenGaz S.A. From Lagos, Nigeria, to Togo, Ghana, and Benin. Also links to Escravos-Lagos pipeline in Nigeria 2011 424 168
Escravos-Lagos Pipeline System II (ELPS 2) expansion project Operating NNPC Doubles capacity of existing Escravos-Lagos pipeline (402 Bcf per year) and follows same route from Escravos (Delta state) to Lekki (Lagos state) 2021 214 402
Ajaokuta-Kaduna-Kano (AKK) pipeline Under construction NNPC Connects Ajaokuta to Abuja terminal natural gas station (TGS), Kaduna TGS, and Kano TGS. Pipeline is phase one of three for the Trans-Nigeria Gas Pipeline development 2023 384 1,278
Obiafu-Obrikom-Oben (OB3) Gas Pipeline Under construction NNPC Starts in Edo state and ends in Rivers state Unknown 88 730
Trans-Nigeria Gas Pipeline (TNGP) project Proposed NNPC Planned route to start at the Qua Iboe Terminal and run through the Obigbo-Umuahia-Enugu-Ajaokuta pipeline network and AKK pipeline and connect to Algeria via Niger Unknown 429 Unknown

Data source: Hydrocarbons Technology, Global Energy Monitor, West African Gas Pipeline Company website, NS Energy Business
Note: The TNGP project's specified length excludes the AKK pipeline segment. When combined, the total length is 1,300 kilometers (813 miles).

  • Nigeria imported an average of 35,000 short tons of coal between 2012 and 2021. Nigeria began importing coal in 2015 as higher domestic consumption needs outstripped domestic coal production (Figure 13).29
Figure 13. Nigeria's total annual coal imports, 2012-2021
figure data

Endnotes

  1. BP 2022 Statistical Review of World Energy, June 2022.
  2. “Can Nigeria keep oil theft and vandalism at bay to sustain current output?“ Rystad Energy, March 7, 2023. “Nigeria Outlook—How long will Nigeria’s production recovery last?“ Facts Global Energy Crude Alert, February 21, 2023. “Nigeria—Bonny pipeline explosion dents crude output,“ Facts Global Energy Crude Alert, March 7, 2023. “Nigeria’s crude production dropped below 1 million bpd in August,“ Rystad Energy, September 15, 2022. “Nigeria and Angola lead the dramatic crude oil supply decline in West Africa,“ Rystad Energy, November 1, 2021.
  3. “Worldwide Look at Reserves and Production,“ Oil & Gas Journal, Worldwide Report [Table], December 5, 2022.
  4. “Crude Grades,“ McKinsey Energy Insights, accessed February 7, 2023.
  5. Nadja Skopljak, “Nigeria plans bidding round for 7 deepwater offshore blocks,“ Offshore Energy Biz, December 22, 2022. “Exploration Trends Report: January 2023,“ Rystad Energy, Upstream Analytics, January 11, 2023.
  6. Kasirim Nwuke, “Nigeria’s Petroleum Industry Act: Addressing old problems, creating new ones,“ Africa in Focus, Brookings Institution, November 24, 2021. Opeyemi Atawo, Ayesha K. Waheed, “Nigeria Overhauls Its Oil and Gas Laws with Petroleum Industry Act,“ Morgan, Lewis & Bockius LLP, December 14, 2021. “The Petroleum Industry Act: Redefining the Nigerian oil and gas landscape,“ PwC Nigeria, August 2021.
  7. U.S. Energy Information Administration, International Energy Statistics database, accessed January 31, 2023.
  8. Terhemba Daka, “Nigeria will end fuel importation from mid-2023, says NNPC boss,“ The Guardian, August 31, 2022. Nathaniel Soonest, “Why We Shut Down Four Oil Refineries – NNPC,“ Nigeria Channels TV, September 10, 2020. “Nigeria’s non-functional refineries,“ The Sun News, July 12, 2022.
  9. “The Petroleum Industry Act: Redefining the Nigerian oil and gas landscape,“ PwC Nigeria, August 2021. “All four of Nigeria’s refineries are currently shut down, says NNPC chief,“ Reuters, September 9, 2020. Jack Beckford, “Nigeria to Embark on Mini-Refineries Project,“ Egypt Oil & Gas, November 25, 2020. Eklavya Gupte, ed. Manish Parashar, “Nigeria’s modular refinery projects run into hitches on funding concerns,“ S&P Global, January 25, 2022. Camillus Eboh, “Dangote says it will complete its Nigerian oil refinery in the fourth quarter,“ Reuters, April 4, 2022. Mary Izuaka, “Nigeria could become Africa’s biggest oil refiner by 2025 – Report,“ Premium Times Nigeria, February 7, 2023.
  10. “Worldwide Look at Reserves and Production,“ Oil & Gas Journal, Worldwide Report [Table], December 5, 2022.
  11. U.S. Energy Information Administration, International Energy Statistics database, accessed January 31, 2023.
  12. The World Bank Group, Global Gas Flaring Reduction Partnership, accessed April 14, 2023.
  13. Chevron Nigeria Business Portfolio, accessed March 13, 2023. Escravos Gas-to-Liquids Project, Niger Delta, Hydrocarbons Technology, accessed March 13, 2023.
  14. U.S. Energy Information Administration, International Energy Statistics database, accessed February 7, 2023.
  15. U.S. Energy Information Administration, International Energy Statistics database, accessed February 7, 2023.
  16. U.S. Energy Information Administration, International Energy Statistics database, accessed January 31, 2023.
  17. The World Bank Group, World Bank Open Data Portal, accessed February 28, 2023. International Energy Agency, Country Profile: Nigeria Energy Outlook 2019, Africa Energy Outlook 2019, November 2019. Atlas of Africa Energy Resources, United Nations Environmental Programme, 2017, pg. 238 – 241. Renewable Energy Roadmap: Nigeria, International Renewable Energy Agency, January 2023, pg. 12.
  18. “Investing in Nigeria’s Energy Transition Plan,“ Government of Nigeria’s Energy Transition Plan investor deck, March 2022, accessed March 9, 2023.
  19. International Hydropower Association, Nigeria country profile, June 2018, accessed March 9, 2023.
  20. “Zungeru Hydropower Project, Nigeria,“ NS Energy Business, accessed March 8, 2023. Camillus Eboh, “Nigeria offers concession on $1.3 billion China-funded hydro power plant,“ Reuters, November 11, 2022.
  21. International Trade Commission, “Electricity and Power Systems,“ Nigeria Country Commercial Guide, October 13, 2021. “REA Launches the Africa Minigrids Program (AMP) to Expand Energy Access Across Nigeria Through Increased Financial Viability and Scaled-up Commercial Investment,“ United Nations Development Programme press release, October 4, 2022.
  22. U.S. Energy Information Administration, International Energy Statistics database, accessed January 31, 2023. Vortexa shipping database, accessed March 14, 2023.
  23. Vortexa shipping database, accessed March 14, 2023.
  24. U.S. Energy Information Administration, International Energy Statistics database, accessed January 31, 2023.
  25. BP, 2022 Statistical Review of World Energy, 71st edition, June 2022.
  26. International Group of Liquefied Natural Gas Importers (GIIGNL), 2022 Annual Report, May 24, 2022.
  27. Camillus Eboh, “Nigeria’s AKK gas pipeline to open in early 2023, NNPC says,“ Reuters, April 15, 2022. “AKK Natural Gas Pipeline Project,“ Hydrocarbons Technology, accessed March 16, 2023.
  28. “Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline,“ NS Energy Business, accessed March 16, 2023. “Algeria, Niger, Nigeria resume talks on Trans-Saharan gas pipeline,“ Al-Jazeera, June 23, 2022. International Trade Administration, “Algeria Trans Saharan Gas Pipeline,“ Market Intelligence press release, September 22, 2022. “Trans Nigeria Gas Pipeline,“ Global Energy Monitor, accessed March 16, 2023. International Trade Administration, “Nigeria Renewable Energy,“ Market Intelligence press release, March 24, 2022
  29. U.S. Energy Information Administration, International Energy Statistics database, accessed February 1, 2023.