Increasing economic development in Nigeria is likely to spur engine oil demand in the region. Nigeria is one of the most populous countries in the region which is characterized by economic growth driven by rapid industrialization. This factor is likely to support growth in middle-class consumer spending capacity and thus drive lubricant demand in the region.
Nigeria engine oil market is likely to be the most lucrative over the period 2012-2017 and accounted for more than 8% of the regional demand in 2014. In 2017, mineral lubricants continued to be the most consumed lubricants in Nigeria followed by synthetic and semi-synthetic lubricants. Engine oils had a maximum share in the lubricants market in Nigeria. These lubricants are largely needed by commercial vehicles and light trucks which need to generate enough power as they are largely used in transport and logistics.
The Lagos region had the major market share in the Nigeria lubricants market in terms of consumption volume in 2017. Lagos being the most populous city in Nigeria and one of the fastest growing cities in the world had about 12 of the 35 blending plants in the country. This was followed by Northern Nigeria, Eastern Nigeria and Western Nigeria.
Nigeria engine oil market share is moderately consolidated with major industry participants such as Total Nigeria Plc is (the market leader with the highest market share in terms of sales volume in the Nigeria Lubricants Market), Ammasco International Limited, 11 Plc, Oando Plc, Tonimas Nigeria Ltd, Forte Oil Plc, Conoil Plc, Lubcon, MRS Oil Nigeria Plc, A-Z Petroleum Products Ltd, Dozzy Oil and Gas, Eterna Plc, Techno Oil Ltd and Ascon Oil Company Ltd.