Nigeria energy report

• The country aims to produce 3 mb/d by 2025.
• Nigeria aims to reduce its GHG emissions by 47% in 2030 compared to a BAU scenario and to reach net-zero emissions by 2060.
• The Petroleum Industry Bill was adopted in 2021.
• Oil and gas production is concentrated in the hands of five majors (Shell, TotalEnergies, ExxonMobil, Chevron, and Eni).
• The power generation market is highly fragmented, and Sahara Group accounts for 19% of power generation.
• Nigeria is the largest African oil producer and the second largest gas producer.
• Oil production decreased by almost 15% in 2020.
• Only a third of the installed capacity is available (6 GW).
• Gasoline and diesel prices are 60 to 70% lower than in neighbouring countries. The country reintroduced subsidies on motor fuels in 2022 after removing them in 2020.
• In 2020, NERC introduced service reflective electricity tariffs.
• Electricity consumption per capita is three times lower than the average for Sub-Saharan Africa.
• Biomass accounts for around 3/4 of total energy consumption.
• Electricity and gas consumption is increasing rapidly.
• Around 4 GW of gas-fired plants and 0.7 GW of hydro projects are currently under construction.
• The construction of a seventh LNG train of 8 Mt/year started in 2021.
• A 650 kb/d refinery is expected to enter operation in 2022.

• Institutions & Energy Policy

  The Federal Ministry of Petroleum Resources (FMPR) supervises the oil and gas sectors through its Department of Petroleum Resources (DPR). The FMPR also oversees the Nigerian Nuclear Regulatory Authority (NNRA).

• Energy Supply

  Resources:

  Nigeria has considerable oil and natural gas resources (5 Gt and around 5 800 bcm proven reserves at end-2021). The reserves are mainly located in the Niger Delta and in the Gulf of Guinea. The country is the largest gas proved reserve holder in Africa and the second oil and NGL proved reserve holder in Africa, after Libya.

• Energy Prices

  Electricity:

  In 2021, electricity prices in dollars reached US$9.7/kWh for industry (-13%) and US$9.5/kWh for households (-13%), in a context of a depreciating naira (NGN). At purchasing power parity, electricity prices for households in Nigeria are between 35 and 50% lower than in Ghana, Ivory Coast, and Senegal (2020).

• Energy Consumption

  Consumption per capita was 0.8 toe in 2021 (one third higher than the average for Sub-Saharan African). Electricity consumption per capita is relatively low in comparison to neighbouring countries and reached 140 kWh/hab in 2020 (almost three times lower than the average for Sub-Saharan Africa).

  Since 2018, total consumption has increased by 5%/year to 173 Mtoe.

• Issues & Prospects

  According to the National Integrated Infrastructure Masterplan (2015), the country needs US$1 000bn to develop its energy sector over the next 30 years, comprising US$600bn for power and US$400bn for oil & gas.

• GENERAL OVERVIEW
• INSTITUTIONS AND ENERGY POLICY
• ENERGY SUPPLY
• ENERGY PRICES
• ENERGY CONSUMPTION
• ISSUES AND PROSPECTS
• DATA TABLES
• ABBREVIATIONS
• GLOSSARY

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Below is a list of the Nigeria energy market report graphs:

• GRAPH 1: CO₂-energy emissions (MtCO₂)
• GRAPH 2: Installed electric capacity by source (2021, %)
• GRAPH 3: Gross power production by source (TWh)
• GRAPH 4: Power generation by source (2021, %)
• GRAPH 5: Gasoline & diesel prices (US$/l)
• GRAPH 6: Electricity prices for industry and households (US$c/kWh)
• GRAPH 7: Consumption trends by energy source (Mtoe)
• GRAPH 8: Total consumption market share by energy (2021, %)
• GRAPH 9: Final consumption market share by sector (2021, %)
• GRAPH 10: Oil consumption (Mt)
• GRAPH 11: Oil consumption breakdown by sector (2021, %)
• GRAPH 12: Electricity consumption (TWh)
• GRAPH 13: Electricity consumption breakdown by sector (2021, %)
• GRAPH 14: Natural gas consumption (bcm)
• GRAPH 15: Gas consumption breakdown by sector (2021, %)
• GRAPH 16: Coal consumption (bcm)
• GRAPH 17: Coal consumption breakdown by sector (2021, %)

In the Nigeria energy market report you will find the following tables:

• Economic Indicators: Annual historical data including population, GDP growth, imports and exports, inflation rate, energy security and efficiency indicators, CO₂ emissions.
• Supply Indicators: Historical data including oil and gas reserves, electric and refining capacity, energy production, power production and external trade. All are detailed by energy source.
• Demand Indicators: Historical data including consumption per inhabitant, consumption trends, total consumption by energy source, final consumption by energy source and sector, and electricity consumption by sector.
• Energy Balances: Single table displaying the overall energy industry balance per annum, also graphically displayed by energy sub-segment.
• Infrastructure Projects: Covers power plant projects by energy, technology, status and operator, gas plant projects by status and operator and LNG contracts.