8 Oil and Gas Investment Opportunities in Nigeria 2019

How to Start Oil and Gas Business In Nigeria

Report has it that: Nigeria is one of the world’s biggest oil producers in the world and yet most of its people remain in absolute poverty since Nigeria has been rated the poorest country in the world.

Well, that will be a talk for another day. The thing here is Oil and gas investors in Nigeria are making millions of dollars every day and you could just be one of them if you take the step and invest in Nigeria’s Oil and Gas sector today.

I almost forgot to tell you about it being capital intensive and can as well be invested into on a small scale.

Nigerians always attribute wealth to the name; Oil and Gas’ that is to tell you there is money to be made in oil and gas business, seriously, you need to get close to some guys who are into oil business in Nigeria to understand what I am talking about. When I was still in Lagos, i used to visit my friend in his father’s office complex and I’ll do you will see Mercedes Benz cars of N80 million, Bentley of N100 million, Costly Range Rovers in different shapes models all over the place. Guess who own those cars?

Of course they are owned by Oil Investors occupying some of the offices in the complex! That tells you the extent of wealth in the business.

Its also good to see that investing into oil and gas business is diverse and is almost business for everyone, meaning that no matter who you are and your financial capacity you can still invest a decent amount in the oil and gas Industry and make your own mega buck.

In Part 1 of this article, I talked about oil and gas investment opportunities coming in two different forms, which are

  1. Upstream sector and
  2. Downstream sector

Majority of the investment activities in the Upstream oil and gas sector is capital intensive and meant for large business corporations with large sum of money to invest while most of the activities is at Downstream sector is where most of us can afford to invest.

So, I’m breaking this down so before you talk of investing, you need to know where to invest, the decision you make after this depends solely on your capacity. What I mean is: by the end of this article, you should be able to make a choice of either building a Refinery or a Kerosene Tank by the roadside. Whichever way you take, be sure you’re going to make good money.

This post also answers the these terms below

  • oil investment opportunities
  • how to invest in oil and gas in Nigeria
  • petrol investment opportunities
  • investment in oil and gas sector in Nigeria

The Oil And Gas Investment Opportunities – How To

  1. Oil Refinery

This is the most ambitious of all the investment opportunities in oil and gas and the heartbeat of the Upstream sector. It can cost as high as $5 billion to as much as $500 billion to build one oil refinery and take at least two years to complete. As you can see, this is not business for faint hearted Investors. Refinery requires huge deployment of fund, careful environmental and physical planning and technology.

In the Nigeria-Oil-and-gas sector, People are trying very hard to make me believe that building a refinery isn’t economically viable but I don’t believe them. Thank God someone like Dangote is doing this already at least as a service to Nigeria and Africa which will help in creating Job Opportunities for many.

If you can afford this or there is anyway you can pull together Investors who are ready to shell out huge fund go for this. You will be buying crude oil here in Nigeria, refine and sell locally to millions of Nigerian oil marketer and distributors, export to other African countries and even Europe, plus you make millions of dollars from other petroleum by-products.

You can imagine how much Dangote is going to be making from his refinery business.

  1. Fuel Importation

This is where most of the big men in Nigeria are falling over each other, making untold billions of legitimate and corrupt money at same time. You too can invest in fuel importation and make good and legitimate money doing the business. There is currently importation root from Niger Republic. One of the major requirement for fuel importation is having a Tank Farm or group of filling stations where the imported product can be stored.

Fuel importation is a big money business and heavy infrastructures are also required to start it. To be able to get the importation license and permit, you will need to have fuel depot and functional jetty among other things. Those who are into it are making double kill from the sale of products and Government subsidy money. This is what the like of Ifeanyi Uba (Capital oil), etc are doing that’s making them the Anambra Billionaires that we all know.

You can go into this on a very small scale and make good money.

  1. Oil Servicing Business

Cost of running a refinery and oil company equipments are high as they require constant maintenance and servicing. This is where the business of oil servicing companies comes in. It is one of the most essential aspect of the Upstream and Downstream sector of Oil and Gas Industry.

Huge money is flowing in Nigeria oil and gas sector. You and your group can grab part of it take the step and invest now. To be in this, you will need to put together the technology, equipment, and highly skilled personnel to handle the oil machines.

  1. Petrol Filling Station

Thousands of oil Investors across the country have been turning over billions of naira annually revenue from Petrol filling station business. It is one cool business, full of money for those who have the investment capital of setting up a filling station. It likely you know someone who owns a filling station and you can tell he/she is rich doing the business.

  1. Petroleum Haulage

Petroleum Haulage as an investment opportunity in oil and gas is a service that involves the transportation of petroleum products from one location to another. One Petrol Tanker is enough for you to start this business and it is very lucrative. From one tanker, you can expand to build fleet of Tankers and huge Haulage company.

Tanker owners charge about N180,000 to transport product from Lagos to Kaduna. According to insiders information, the transportation of petroleum products from places like the Port Harcourt refinery to other various parts of the country is indeed good business and worth trying out if you have enough capital to start with at least 1 trailer. The head of Mark engine costs about 8-12 million naira, then get local fabricators to construct the tank for you for about 1.2-3-5 million. So, with 10-15 million naira, you should have Tokumbo trailers for Petrol haulage and logistics business.

The price for haulage services ranges from N20, 000 to N200,000 per trip, depending on the location the product will be taken to and the capacity of the tanker.

Most tanker measure about 25,000 to 33,000 litres.

  1. Diesel Supply

Many guys are going into this one now and my company (Gudtalent & Co Nig Ltd) is considering joining the deal. Diesel Supply Business from my findings is a mega million-naira business to try out.

  1. Kerosene Business

One thing most people don’t know about Kerosene is that the product is actually gotten so cheap from NNPC. From NNPC you can land the product at unit cost of N60 per litre and sell for N120-N150 per litre. That is what filling station owners and other dealers do.

If you lift 10,000 litres and gain at least N50 per litre, you will gain N50 x 10,000 = N500,000.

  1. Cooking Gas Refilling Business

The main problem I have with Kerosene business these days is that is fast becoming a rural business and not thriving well in cities anymore as Gas cooker is fast taking over homes and making the demand for kerosene to drop drastically.

So, you might as well consider starting a Gas business refilling business.

Let me know what you think in the comment section.



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