Nigeria Petrochemicals Report

Published 06 January 2015

  • 63 pages
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Nigeria Petrochemicals Report

Growth in gas production is set to spur downstream petrochemicals industries, particularly fertiliser and methanol, but BMI's latest Nigeria Petrochemicals report warns that the business environment remains uncertain and will no doubt be affected by the turbulence that comes with presidential elections, which are due in February 2015.

In 2014, Nigeria had olefins production capacities of 550,000 tonnes per annum (tpa) ethylene and 125,000tpa propylene with thermoplastic resins capacities of 240,000tpa linear low-density polyethylene (LLDPE) and 95,000tpa polypropylene (PP). Nigeria's petrochemicals sector is characterised by low capacity utilisation, frequently disrupted plant operations and a lack of proper resources to operate and maintain facilities.

The government is attempting to attract foreign direct investment (FDI) into the country's petrochemicals sector. However, a lack of skilled labour, political and social unrest and sabotage of upstream infrastructure could delay projects planned in the coming years.

  • According to current planned projects, by 2019 Nigeria will see an additional 5.6mn tpa of urea and 1.74mn tpa of ammonia. This will transform the country into a significant net exporter of fertiliser.

  • Methanol is also set to grow with total additional capacity of 3.6mn tpa over the next five years, although BMI cautions that some of this capacity may not materialise or could be delayed.

  • Basic polymers appear to be getting less attention by investors with only 600,000tpa of polypropylene (PP) scheduled to come into operation in 2018. A low density polyethylene (LDPE) plant is also planned, but its capacity is unknown.

  • Nigeria comes in at 11th place in BMI's Risk/Reward Index (RRI) for the Middle East and Africa with 37.2 points, up 0.6 points from 2014 due to moves to boost indigenous capacities. It lies 2.0 points ahead of Algeria and 7.5 points behind Egypt. Its score could rise if all plans come on stream as expected, but bearing in mind...

BMI Industry View
Industry Forecast
Table: Nigeria's Petrochemicals Sector, 2011-2019 ('000 tpa)
Macroeconomic Forecasts
Economic Analysis
Table: Economic Activity (Nigeria 2009-2018)
Industry Risk Reward Ratings
MEA Petrochemicals Risk/Reward Index
Table: MEA Petrochemicals Risk/Reward Index - Q1 2015
Nigeria Risk/Reward Index
Market Overview
Business Environment
Table: Nigeria's Petrochemicals Facilities
Industry Trends And Developments
Upstream Sectors
Company Profile
Eleme Petrochemicals Company (EPCL) (Indorama)
Nigerian National Petroleum Corporation (NNPC)
Regional Overview
Middle East And Africa Overview
Losing cracker competitiveness
2015 Outlook
Diversification The Long-Term Focus
Global Industry Overview
China versus the US: feedstock wars
Table: Top 10 Ethylene Producers, 2013
Demographic Forecast
Table: Population Headline Indicators (Nigeria 1990-2025)
Table: Key Population Ratios (Nigeria 1990-2025)
Table: Urban/Rural Population & Life Expectancy (Nigeria 1990-2025)
Table: Population By Age Group (Nigeria 1990-2025)
Table: Population By Age Group % (Nigeria 1990-2025)
Table: Glossary Of Petrochemicals Terms
Industry Forecast Methodology
Risk/Reward Index Methodology
Table: Petrochemicals Risk/Reward Index Indicators
Table: Weighting Of Indicators

The Nigeria Petrochemicals Report has been researched at source, and features BMI Research's market assessment and independent forecasts for key petrochemicals sub-sectors. The report also analyses the impact of regulatory changes, recent developments and the background macroeconomic outlook and features competitive landscapes comparing companies by products and services, sales, market share, investments, projects, partners and expansion strategies.

BMI's Nigeria Petrochemicals Report provides industry professionals and strategists, sector analysts, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Nigerian petrochemicals industry.

Key Benefits

  • Benchmark BMI's independent petrochemicals industry forecasts to test other views - a key input for successful budgetary and planning in the Nigerian petrochemicals market.
  • Target business opportunities and risks in the Nigerian petrochemicals sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Nigeria.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity).


BMI Industry View

Summary of BMI’s key industry forecasts, views and trend analysis, covering the petrochemicals markets, regulatory changes, major investments, projects and company developments.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the petrochemicals sector and within the broader political, economic and business environment.

BMI Industry Forecasts

Historic data series (2009-2013) and forecasts to end-2019 for key industry and economic indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:

  • Energy: Oil production (‘000 b/d), oil consumption (‘000 b/d), net oil exports (‘000 b/d), gas production (bcm), gas consumption (bcm), net gas exports (bcm), oil refinery capacity (‘000 b/d).
  • Petrochemicals: Ethylene capacity (‘000 tpa), ethylene production (‘000 tpa), ethylene consumption (‘000 tpa), polyethylene capacity (‘000 tpa), polypropylene capacity (‘000 tpa), polyvinyl chloride capacity (‘000 tpa), polyolefins consumption (‘000 tpa).
  • Oil Products Prices: Price forecasts for all major oil-based products (USD/bbl) at major global energy trading hubs.
  • Economic: Nominal GDP (USDbn), real GDP growth (%), GDP per capita (USD), population (mn), unemployment (%), exchange rate (against USD).

BMI’s Petrochemicals Risk Reward Index

BMI’s Risk Reward Indices provide investors (both corporate and financial) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.

Market Overview

Structure, size and value of the industry sector; overview of the industry landscape and key players; assessment of the business operating environment and the latest regulatory developments.

Industry Trends & Developments

Evaluation of company and sector-wide developments, including key projects (as well as expansion plans), latest company financial details and proposed international ventures.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Global & Regional Market Overview

Analysis of the key trends driving the global industry, including worldwide output/capacity and demand analysis across ethylene, polyethylene, polyvinyl chloride, polystyrene, polyethylene terephthalate and polypropylene. The regional analysis looks at the implications of local and global trends on specific company activity.

Sub-sectors covered by the Petrochemicals Reports include:

Oil & Gas, Oil Refining, Olefins (ethylene, propylene), Polyolefins (polyethylene, polypropylene), Polyvinyl Chloride, Polystyrene

Please note – not all country Reports cover all sub-sectors – see website for details.


The Petrochemicals Market Reports are based on a network of primary sources, such as multilateral organisations (ACC, APLA, Cefi c, ICCA, ICMA), national chambers of commerce and industry, national statistical offi ces, government ministries and central banks, and multinational companies.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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