Crude oil is a major driver of the global economy, especially in oil-producing countries. Since the discovery of oil in Nigeria, “black gold” has remained the most significant economic pillar sustaining the economy of the West African country.
The oil and gas sector in Nigeria is valued as one of the top 8 crude oil exporting industries in the world and the sector has created millions of jobs over the decades for both Nigerians and expatriates. Although the global tides are slowly drifting away from oil as a source of energy, the industry remains a massive money-spinner for all categories of entrepreneurs.
If you’re looking for lucrative oil and gas business opportunities to invest in, here are 25+ profitable oil and gas business ideas to start in Nigeria, Africa or anywhere around the world:
1). Fuelling Station Business:
The fuelling station business is a signature business in the oil and gas sector. All over Nigeria and other parts of Africa, there are fuelling stations in towns and cities to provide members of the public with fuel resources.
Since people need petrol, kerosene and diesel for their daily business activities and transportation, the fueling station business never runs out of demand. However, it requires high capital.
2). Oil Spill Cleaning Business:
Oil spills are common occurrences in riverine areas and on major water bodies. As large ships transport oil drums across water bodies, there are accidental leakages. Similarly, oil leakages arise from pipe vandalization in the Niger Delta region of Nigeria.
Starting an oil spill cleaning business in Nigeria, Africa or anywhere around the world puts you in the right position for contracts to extract soiled oil from water bodies to save marine life and to make the water safe for drinking. Oil spill cleaning requires heavy machinery but yields massive profits.
3). Cooking Gas Retail And Distribution Business:
Another highly profitable oil and gas business idea is the gas retail business. Cooking gas is consumed every day in most parts of Nigeria. It endures competition with kerosene in most towns in the country but is often the preferred option because it is easier to use and produces less soot.
To start a cooking gas retail and distribution company, you should invest in a good network to get gas delivered to you on a large scale at fair prices. Unlike the petrol business, you can start a gas retail business as a small entrepreneur in Nigeria, Africa or anywhere around the world. If you have a safe store, a pump and a weighing scale, you’re good to start!
4). Gas Cylinders Retail Services:
Selling gas cylinders is a viable option in the oil and gas sector. This profitable oil and gas business enjoys a large market in the sector as more people continue to adopt modern means of cooking.
You can distribute gas cylinders to retailers across the country or open a small retail shop and sell directly to end-users. Cylinders aren’t commodities that people have to buy repeatedly but the continuous adoption of the gas cooking method has increased patronage.
5). Kerosene Sales Business:
Although there is growing adoption of gas cylinders, Nigeria still records massive kerosene consumption. As of March 2021, the West African country consumed over 20,000 barrels of kerosene daily.
For now, kerosene still gets more patronage than gas. Retailing it is a highly lucrative business enterprise in Nigeria and any other African country. You don’t need a high capital to start, as you can sell in small gallons to start.
6). Oil Lubricant Production Business:
Not all profitable oil and gas business ideas are capital-intensive. Lubricants are easy to produce and retail. They are essential for reducing friction and wear and tear in vehicle parts. Similarly, oils are necessary to keep vehicle engines in good shape and to aid proper functioning.
To start lubricants production in Nigeria, Africa or anywhere around the world, it is important to invest in the right equipment. On the other hand, you can focus on retailing quality oil in collaboration with trusted manufacturing companies.
7). Fuel Haulage And Distribution Business:
Transporting and distributing fuel is a delicate business that requires expertise and a lot of safety measures in place. Large fuel tankers are exchanged among refineries and fueling stations across the country, and this requires the services of a special haulage system.
With the right trucks and other basic equipment needed, you can start a fuel haulage system. This would require you to register with the NNPC and the regulatory bodies in charge of petroleum resources in the country.
8). Oil And Gas Consultancy Business:
Consultancy is at the core of every business activity and it also applies in the oil and gas sector. Individuals, SME owners, investors and other entrepreneurs in the oil and gas industry require tips, guidance and help to make vital business decisions.
If you have in-depth experience and expertise in the sector, you can set up an oil and gas consultancy agency and get paid for offering professional help.
9). Oil Drilling And Exploration Services:
Oil drilling or offshore drilling involves discovering and exploring new crude oil and gas fields, and digging oil wells to make crude oil available for processing. Oil exploration is a highly sophisticated process that requires high-level machinery.
Beyond that, it is a business with a lot of government controls. Starting an oil drilling company puts you in a position to earn government contracts for drilling and exploration services.
10). Private Oil Refinery Business:
There are only four refineries in Nigeria at the moment with hardly any operating properly. Nigeria needs more refineries to sufficiently cater to the daily petroleum demand.
Starting a private oil refinery isn’t an easy venture. It requires billions of naira in capital, but with the right strategy in place, as well as the necessary licenses and government approvals, a private refinery is a gold mine!
11). Offshore Trading:
Offshore trading involves the business of selling oil products to shippers who move them to other countries and sell them to foreign markets. The rationale behind offshore oil trading is for licensed shippers to serve as the link between local traders and the international market. This way, oil traders who have not been licensed yet can trade their products without restrictions till they can secure a license.
12). Oil And Gas Magazine:
The oil and gas industry comprises a lot of business changes and developments, novel policies, ideas, business plans and so on. Entrepreneurs with an interest in the print media industry can focus on the oil and gas niche and produce quality and helpful magazines that can influence the industry.
Starting an oil and gas magazine business is a way to combine creativity with your interest in the oil and gas industry. The business has a select audience. If you can reach the right target, you can steadily build a massive magazine business.
13). Sales And Distribution Of Petroleum Products:
Besides offshore trading, selling and distributing petroleum products locally can be a great way to make your mark in the oil and gas industry. As a distributing company, your role lies in bridging the gap between manufacturers of petroleum products and end consumers.
The demands of starting a distribution business depend on the type of petroleum products you intend to focus your business on. Lighter petroleum products such as lubricants are easier to move about than liquefied petroleum gas and related products.
14) Crude Oil Exportation:
Exporting crude oil is a lucrative oil and gas business idea. It is a business that does not only enrich the individual investors but also improves a nation’s gross national income and economy at large.
The success of the crude oil exportation business rests on the international value it has and your business network int the international space. Notwithstanding, there are both national and international regulations guiding the distribution of petroleum products on the international market.
15). Fuel Importation Business:
On the flip side, you can choose to start a petroleum importation business. Nigeria imports a very large percentage of fuel consumed in the country. Importing fuel is a business that can generate massive in any part of the world. There is a ready market available. All you have to do is build a trusted distribution channel.
On the other hand, you can work with fuel distribution companies for massive distribution with fewer risks.
16). Oil Brokerage Business:
Oil brokerage describes the business of linking buyers of oil and petroleum products with sellers and getting commissions on each sale. As an oil broker, your role is to function as the third party that connects buyers with sellers.
You don’t need large capital to start an oil brokerage business. All you need to do is build a trusted network to help you find the right buyers and sellers.
17). Petrol Sales Equipment:
Opening a fuelling station does not stop at building the structure. The business requires basic fuelling tools. Such equipment includes pumps, meters, filters, nozzles, hose and hose reels, tanks, and much more.
With the continuous establishment of petrol stations across Nigeria, starting a petrol sales equipment business is a promising business idea with good margins. You could also offer installation services for equipment such as pumps.
18). Diesel Supply Business:
Supplying automated gas oil (diesel) to individuals, homes, factories and institutions where they are required for daily operation is a highly profitable oil and gas business idea.
Diesel serves as fuel for many generators, devices and vehicles, and therefore enjoys steady demand like other fuel types. Once you can build a strong distribution channel to reach buyers wherever they are, you’ll generate a lot of income.
19). Safety Kit Production Business:
The oil and gas industry is a high-risk business, no thanks to the highly inflammable nature of crude oil and other petroleum products. This makes it extremely compulsory for all players in the industry to take necessary precautionary steps to avoid hazards.
Producing and retailing safety kits and damage control equipment to individuals and organizations involved in the oil and gas business can be a gold mine. Safety items such as gloves, fire extinguishers, flame-resistant clothes, portable monitors, safety belts, and so on, all make a large market in the oil and gas industry.
20). Petrol Tankers Retail Business:
Brand new petrol and tank trucks cost within ₦5m and ₦7m in Nigeria, depending on the size. Petroleum tankers are needed for most oil and gas businesses. Starting a petroleum tanker retail business requires heavy capital but it is a highly lucrative enterprise.
21). Oil Pipeline Security Services:
Another dimension of the oil and gas business is protection and security services. Most oil wells and pipelines in the Niger Delta region where crude oil is sourced have suffered attacks from vandals. This creates the need for security measures.
Besides the federal police force security, there is a privilege for private security agencies to work with the force to ensure improved security. Individual oil and gas stations such as refineries and petrol and gas stations also require security services.
22). Fuelling Station Construction Business:
Building fuelling stations require special expertise that goes beyond most building contractors. If you’re a professional building engineer, you can position yourself for building world-standard fuelling stations and earn a lot of income from it.
Starting a fuel station construction company involves high capital but it is a promising business in Nigeria, Africa or anywhere around the world.
23). Fuel Pump Retail Business:
Fuel pumps are basic equipment needed for selling petrol. They are available in various sizes and with different functionalities and features. You can start selling fuel pumps because they’re essential tot he il and gas industry.
24). Oil And Gas YouTube Channel:
It doesn’t matter if you don’t have any capital to delve into the oil and gas industry; there are also profitable oil and gas business ideas that require zero capital, one of which is starting an oil and gas channel on YouTube.
Although it sounds farfetched, all businesses begin with ideas and information. Investors and entrepreneurs looking to get started in the oil and gas industry are always on the lookout for valuable information. If you can provide such information on your YouTube channel and you get massive engagement, you can build a successful business.
25). Petroleum Business Blogging:
Similar to starting a YouTube channel, you can indirectly sell vital business information on a blog. To make money via this oil and gas business idea, all you need to do is constantly create insightful and engaging content around the oil and gas sector.
As you generate attention and engagement with your posts, you get to earn either directly from traffic generated or via sponsored ads and posts. Plus, you can start this simple oil and gas business idea with just your mobile phone!
To Sum It Up
Crude oil remains one of the few resources sustaining the economy of Nigeria. Similarly, it has created millions of jobs and business opportunities for individuals, foreign and local investors, as well as organizations. The opportunities are still present and open to new entrepreneurs. If you want to start a lucrative oil and gas business, you can choose from any of the 25+ profitable oil and gas business ideas in this article to start in Nigeria, Africa or anywhere around the world.
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What are your thoughts on these 25+ profitable oil and gas business ideas you can start anywhere in Nigeria, Africa or anywhere around the world? Let me know by leaving a comment below.
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