• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Economy

Nigeria’s Oil refining sector sees first quarterly growth in 5 years, driven by Dangote Refinery 

Research Team by Research Team
February 26, 2025
in Economy, Energy, Exclusives, Features, GDP, Sectors, Spotlight
Oil and Gas sector
Share on FacebookShare on TwitterShare on Linkedin

The Nigerian oil refining sector recorded a significant expansion in the fourth quarter of 2024, marking the first quarterly growth in five years.

According to the recently published Gross Domestic Product (GDP) report by the National Bureau of Statistics (NBS), the sector posted a real GDP growth of 9.59% in Q4 2024.

A trend analysis by Nairametrics Research highlights that the last time the oil refining subsector recorded positive growth was in Q4 2018 when it expanded by 33.6%. Since then, the sector has been in persistent contraction due to various structural challenges, including inadequate refining capacity, aging infrastructure, and reliance on imported refined petroleum products.

RelatedStories

Hand holding Nigerian Naira banknotes fanned out, representing currency exchange or financial context

Naira trades at N1,485/$ on Monday as Dollar index falls  

September 29, 2025
PMS, NNPC

Dangote Refinery vs PENGASSAN: Consumer Forum warns of fuel queues in Nigeria  

September 29, 2025

In nominal terms, the oil refining sector was valued at N20.5 billion in 2024, slightly lower than the N22.8 billion recorded in the previous year.

Key drivers of growth 

The revival in the oil refining sector is largely attributed to the commencement of operations at the Dangote Refinery in mid-2024. The 650,000-barrel-per-day facility, recognized as the world’s largest single-train refinery, has begun supplying refined petroleum products both domestically and internationally.

This development has reduced Nigeria’s dependence on imported fuel and is expected to improve the country’s trade balance by curbing foreign exchange demand for fuel imports.

The oil sector maintains growth momentum 

Beyond refining, the broader oil sector sustained growth throughout 2024, recording an annual GDP expansion of 5.54%. This marks a significant rebound from the 2.22% contraction witnessed in 2023.

  • On a quarterly basis, the oil sector maintained positive growth across all four quarters, although growth in Q4 2024 slowed to 1.48%, primarily due to base effects from the high 12.11% expansion recorded in Q4 2023.
  • Several factors contributed to this turnaround in the Nigerian oil industry. Favourable international crude oil prices have provided support for Nigeria’s oil earnings, coupled with increased crude oil output.
  • According to the NBS, Nigeria’s average crude oil production improved from 1.44 million barrels per day (mbpd) in 2023 to 1.5 mbpd in 2024, reflecting gradual recovery efforts in the sector.
  • Also, several reforms by the federal government targeted at the oil sector has supported increased activities in 2024. Worthy of note is President Tinubu’s signing of executive orders introducing fiscal incentives for non-associated gas midstream and deepwater developments, streamlining of contracting process to compress the contracting cycle to six months, and the application of the local content requirements without hindering investments or the cost competitiveness.
  • Similarly, enhanced security measures and targeted interventions have helped reduce crude oil theft, ensuring improved output and boosting investor confidence in the sector.

Bottom line 

The sustained growth in Nigeria’s oil refining and upstream sectors presents a positive outlook for the country’s economic diversification efforts.

  • The operationalization of the Dangote Refinery, coupled with ongoing government reforms, is expected to enhance domestic refining capacity, reduce import dependency, and improve foreign exchange stability.
  • However, key challenges remain, including regulatory uncertainties, infrastructure deficits, and security concerns in oil-producing regions.
  • Addressing these bottlenecks will be critical to ensuring the long-term sustainability of growth in Nigeria’s oil and gas sector.

As the country continues to implement policy reforms and attract investments into the energy sector, the momentum seen in 2024 could lay the foundation for a more resilient and competitive oil industry in the years ahead.

Tags: Dangote Refineryfirst quarterly growthNigeria’s Oil refining sector
Research Team

Research Team

The Research Team at Nairametrics meticulously monitors, gathers, curates, and administers an extensive repository of both macroeconomic and microeconomic data originating from Nigeria and across Africa. Utilizing a variety of presentation formats—including documents, tables, and charts—our analysts disseminate key findings through the Nairametrics platform. Additionally, we regularly release insightful, research-driven articles that offer in-depth analyses of economic trends and indicators.

Related Posts

Hand holding Nigerian Naira banknotes fanned out, representing currency exchange or financial context
Currencies

Naira trades at N1,485/$ on Monday as Dollar index falls  

September 29, 2025
PMS, NNPC
Energy

Dangote Refinery vs PENGASSAN: Consumer Forum warns of fuel queues in Nigeria  

September 29, 2025
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) logo
Energy

FG asks PENGASSAN to suspend strike over Dangote Refinery dispute

September 29, 2025
Dangote-branded industrial vehicles
Energy

Dangote Refinery says PENGASSAN strike threatens fuel supply to 230 million Nigerians

September 28, 2025
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) logo
Energy

Dangote Refinery: PENGASSAN declares nationwide strike over workers’ sack

September 28, 2025
Dangote Refinery
Energy

Dangote Refinery resumes PMS sales in naira

September 27, 2025
Next Post
Ownland Launches Nigeria’s Leading Due Diligence Platform for Land Acquisition 

Ownland Launches Nigeria’s Leading Due Diligence Platform for Land Acquisition 

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

otd
arco
Palmpay
access bank
nairametrics
first bank








DUNS

Recent News

  • Teleology regains assets as court faults EFCC over N55 billion case 
  • Advanced forex trading techniques for consistent profits  
  • Sync Finance Company Limited secures CBN License, Targets SME & real sector financing

Follow us on social media:

Recent News

Federal High Court

Teleology regains assets as court faults EFCC over N55 billion case 

September 30, 2025
Advanced forex trading techniques for consistent profits  

Advanced forex trading techniques for consistent profits  

September 30, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics