A lot of investment opportunities abound in the natural gas sector of the Nigerian petroleum industry. Increasing attention is now being given​​ to this vital sector. Government’s aspirations for the gas sector include creating new industries out of the old oil industry; capturing economic value and generating as much revenue from gas as from oil. Others are developing the domestic gas market and, ending gas flaring by 2030.

Remarkable progress has been recorded towards the realizat​​ion of these objectives. Of the current annual gas producti​​on of about 2,617.67 Bscf, about 9.48% is flared for the period January to December, 2016. This is a drastic drop from the 40% proportion flared before the advent of this administration. The hitherto flared gas is being channeled into gas powered projects for rapid utilization and monetization with a view to maximizing value addition to the nation’s natural gas resource.
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Domestic gas consumption is expanding as a result of the ongoing power sector reforms while gas export which was non-existent prior to 1999, has received a strong boost.

Comprehensive and integrated gas utilization Master plan/programmes have been embarked upon, in which LNG and IPP developments are being given priority. The expected increased export earnings from LNG, coupled with adequate domestic power supply from IPPs, will strongly support and broaden economic expansion and urbanization, increase the income generating capacity of Nigerians and lift the general wellbeing. It will further reinforce Government’s efforts towards integrating the Host communities into the mainstream of national development and growth.​

Many gas-based projects are being undertaken in line with Governments aspirations in the sector. They include:

With proven oil and gas reserves of 32.5 billion barrels and 187 trillion cubic feet respectively, numerous investment opportunities abound in upstream operations of the Petroleum industry as categorised below: [Upstream Opportunities – On-shore business]​

1. Surveying – tropical and planimetric; and sea bottom survey
2. Civil Works- mud pit construction, concrete works at rig sites
3. Seismic data acquisition and interpretation
4. Drilling operations
5. Pipelining
6. Crude oil transportation and storage
7. Exploration and production of oil and gas products
8. Manufacturing of consumable materials in exploration such as explosives, detonators, steel casting, magnetic tapes etc.
9. Search for development of local substitutes for items such as medium pressure valves, pumps, shallow drilling equipment, drilling mud, bits fittings, drilling cement etc.​

1. Domestic Production and Marketing of Liquefied Natural Gas (LPG).
2. Domestic Manufacturing of LPG cylinders, valves and regulators, installation of filling plants, retail distribution and development of simple, flexible and less expensive gas burners to encourage the use of gas instead of wood.
3. Establishment of processing plants and industries for the production of:
4. refined mineral oil, petroleum jelly and grease
5. bituminous based water / damp proof building materials e.g. roofing sheets, floor tiles, tarpaulin, and
6. building of asphalt storage, packaging and blending that may export these products.
7. Establishment of chemical indus tries e.g. distillation units for the production of Naphtha and other special boiling point solvents used in food processing.
8. Linear Alkyl Benzene, Carbon Bl​ack and Polypropylene producing industries.
9. Development of Phase II (Phase III to commence later) in Nigeria’s Petrochemical Programme.
10. The NLNG Projects.
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12. Small-scale production of chemicals and solvents e.g. chlorinated methane, Formaldehyde, Acetylene etc. from natural gas.
13. Crude oil refining with efficient export facilities.
14. Companies with the technology can undertake turn around maintenance of refineries. There is a tremendous scope for small-scale joint venture manufacturing concerns with foreign technical partners. Such ventures can start warehousing arrangements that will ensure continuity of supply at competitive prices.
15. Products Transportation and Marketing Associated with products distribution and marketing is a chain of manufacturing and maintenance businesses e.g. Lubricating Oil reprocessing, LPG bottles and accessories, oil cans reconditioning etc.

Government has deliberately designed investment incentives to support private sector participation in the sector. While some of these incentives are in form of tax holiday, exemptions, and reliefs, there are many more that leverage on specific government policies, performance of the companies as well as relevant international investment treaties. Some of these are:

• Income tax relief for a period of three years and which can be extended for a period of one year and thereafter another one year or for one period of two years – Pioneer Status Incentives
• Zero Import Duty: Zero percent import duty tariffs (custom, excise and value added) for import of agricultural equipment and agro-processing equipment.
• Exemption of interest from tax on loans granted to agricultural activities.
• Avoidance of double taxation agreement which eliminates double taxation with respect on income and capital gains.
• Investment promotion and protection agreement provides reciprocal baseline protections for investments.
• Nigeria qualifies for the Africa Growth and Opportunity Act (AGOA).

1. Large internal market with access to the regional and continental markets;
2. Trainable workforce with competitive wage demand;
3. Considerable size of disposable income by the population;
4. Predictable macro-economic policy framework;
5. Supportive government policy that is geared towards industrialization.