Abstract

Nigeria is Africa's energy giant, and the most prolific oil-producing country in the continent. Export of petroleum is the mainstay of the Nigerian economy and the major source of revenue for the country. The petroleum and natural gas sector accounted for about 19.39% of the nations GDP in 2009. The sector also contributed over 95 and 70% of export earnings and total government revenue, respectively. Nevertheless, the country suffers from an inadequate supply of usable energy due to inadequate development and inefficient management of the energy sector. The estimated daily demand for petroleum products in Nigeria as at 2010 which are: petrol, 30 million liters; dual purpose kerosene, 10 million liters and diesel, 1.8 million liters, and are expected to grow. Currently, most of Nigeria’s domestic petroleum products needs are met through importation, as the domestic refineries are not capable of supplying enough to meet the ever growing demand. This paper attempts to give an overview of the petroleum sector, projected energy demand for these petroleum products for the country.