How to Invest in Oil and Gas in Nigeria: Oil and gas is a big time business in Nigeria, reason is obvious.
This is because, Nigeria, as a nation depends largely on oil and gas to sustain its economy.
Which is why Nigerian oil and gas industry is synonymous to wealth, and studies have revealed that, there are a lot of investment opportunities in Nigerian oil and gas sector. Therefore irrespective of your status in the society, and you financial capacity, you can as well avail yourself the opportunity of investing in the oil and gas sector in Nigeria, and possibly makes your own money from the oil and gas industry.
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Aside upstream activities, most Nigerians can afford to invest in the downstream because that is where the real opportunities are for you. I will not suggest the upstream operation for now, but if you have the capital to invest in the upstream, then nothing stop you, this is because that area of operation has to do with exploration and exploitation of gas and oil, and it is mostly for multi-national companies and some big financial or money magnet Nigerians and sometimes too, for foreign investors who have the financial muscles and the expertise.
So before you make a move to invest in the oil and gas sector of Nigerian economy, you should know which area you are to invest, and whichever area you pick interest, will largely be determined by the level of knowledge you have in that area. Be that as may, do you have interest in investing in the oil and gas industry in Nigeria, and you do not know how to go about it? Then follow me, in this article, I will be showing you how to invest in oil and gas industry in Nigeria.
There are many policies regulating the operation of oil and gas industry in Nigeria, nevertheless, this industry remained the most lucrative, but dicey anywhere. I have said that investment opportunities abound in oil and gas sector in this country; therefore, I repeat you do not need to be money bag to invest in oil and gas business, since a good number of persons who have little or no startup capital have ventured into this business and have made fortunes out of it.
One important thing to note, what sometime made me scared, anytime people talk about investing in oil and gas industry is because of the stringent in oil and gas business in Nigeria, you be confronted with some challenges, such as securing license to invest in the oil and gas sector, the Nigerian National Petroleum Corporation (NNPC), as well as Corporate Affairs Commission (CAC) have to give you approval to run oil and gas industry in Nigeria. However, below are ways you can invest in oil and gas industry in Nigeria.
The meaning and the difference of upstream and downstream sectors of oil and gas:
Upstream has to do with the discovery of oil, as well as engage in the exploration, exploitation and extraction of the oil from the ground, where as downstream represents the process of refining the oil and selling it to the general public.
Invest in oil and gas in Nigeria
- Drilling of oil:
You can invest in the area of oil exploration and oil drilling, but this aspect of investment in oil and gas sector is a bit dicey, but rewarding, the only stake in this investment requires huge amount of capital to venture into this field, and heavy duty machineries, as well as experienced technical personnel, beside the government must give you the go ahead, as in license to operate in this field.
- Leasing of equipment:
Another way you can invest in oil and gas sector in Nigeria is to invest in this area of leasing equipment. For instance, you do not have such a huge sum of money to invest in oil exploration; you can decide to invest in this area. You invest in this field by establishing a company known for equipment leasing with a view to render services to the oil and gas sector of the economy.
- Refining of petroleum products:
Refining petroleum products is yet another means of investing in oil and gas business in Nigeria. Your refinery may not be of large scale, you can established your personal private refinery, and possibly compete those public refineries in the country. The truth remained that crude oil and gas business has no rivalry. Currently, there is this deregulation of both upstream and downstream sectors of the oil and gas industry in Nigeria. Again, the idea of subsidy removal has made investment in petroleum refinery much more profitable, should you still want to invest in this area.
- Trading in offshore:
This is one of the most lucrative and profitable area of investments in oil and gas sector. For instance, there are some petroleum tankers, I mean the shipping tankers and some of these tankers are not given license to cruise through the sea to some other nations, so if you invest in this field of oil and gas business, you will have to buy the oil at a bargain price from these tankers at a point where there is exchange from one tankers to the other that has the right to sail into other countries.
- Depot or oil farm:
You can in this aspect of oil and gas investment opportunity sells petroleum products by establishing an oil farm or you can set up a depot where you can be selling petroleum products to petroleum distributors, as well as petroleum retailers. Those type of investment called for an establishment of large petroleum depot, where you can be storing your products, and in this investment, you either get your petroleum products locally or you will be importing your product, which way, you are on the way of making your profit.
- Haulage of fuel:
In this area of investment you may want to avoid the stress of registering your company or obtaining license to invest in oil and gas sector. You will simply buy trucks and tankers to haul petroleum products for marketers.
With the above explained fields of investment in oil and gas sector, you can now know how to invest in oil and gas industry in Nigeria.
With the above explained fields of investment in oil and gas sector, you can now know how to invest in oil and gas industry