Recovery of the economy due to increase in crude oil prices, retrofitting of old ships to keep them operational along with the rising marine trade, rising prominence of the middle class in Nigeria with a boost in vehicle sales and the increase in power demand in the country has driven the growth of lubricants market in Nigeria.
According to the study by Ken Research, “Nigeria Lubricants Market Outlook to 2022- By Type of Lubricant (Engine Oil, Industrial Oil, Transmission Oil, Marine Oil, Grease and Specialty Lubricants), Type of Applications (Automotive and Industrial) and Region (Lagos, Northern Nigeria, Eastern Nigeria and Western Nigeria)”, upgrading of technology to keep up with innovations in global trends, improvement in marketing and branding of lubricants, introduction of base oil refining and used oil processing, increasing regulations in Nigeria lubricants market, collaboration with transportation companies, increasing knowledge of consumers and providing better quality lubricants at lower costs will aid the manufacturers of lubricants in Nigeria to grow and achieve higher profits.
The Lubricants market in Nigeria is growing at a declining rate owing to the effects of recession that happened in the country in 2016. Mineral lubricants have dominated the market in both pre oil slump and post oil slump period in Nigeria. However, in the current scenario, there has been a rapidly increasing demand for synthetic lubricants owing to their reliability, better performance and ability to preserve the life of machines. Price of lubricants and brand are the major factors which affect consumer choice in Nigeria lubricant market. The demand of lubricants of domestic market is met by both the global players as well as independent marketers in Nigeria. Major proportion of lubricants in Nigeria is consumed by the automotive sector while a smaller share in the market belongs to industrial lubricant segment. The automotive lubricants are largely used by passenger cars and commercial vehicles while manufacturing sector is the biggest end user of industrial lubricants in the country.
Since second-hand vehicles dominated the Nigerian vehicle market as only a small segment of society is able to afford new vehicles, and used cars require more frequent lubricant changes as compared to newer models, it contributed to the volume demand of automotive lubricants in Nigeria. The slowdown in economic growth because of the economic recession that happened in 2016 in Nigeria as a result of a drop in oil prices globally, and the state of the foreign exchange market had a serious adverse impact on various Lubricants manufacturing companies’ ability to do business and imposed severe costs on key sectors of the country which further cascaded into all areas of the economy. Even though the total vehicle traffic from all ports decreased substantially from 2014 to 2015, it has been increasing since then. This has added to the demand for marine lubricants in the country. There has also been a gradual change in consumer preferences towards synthetic lubricants in Nigeria with the increase in consumer education and awareness.
Keywords:-
Nigeria Lubricants Market
Nigeria Lubricant Plants
Nigeria Synthetic Lubricants Export
Nigeria Engine Oil Export
Nigeria Industrial Oil Revenue
Nigeria Marine Oil Sales
Grease Revenue Nigeria
Nigeria Hydraulic Oil Revenue
Nigeria Gear Oil Revenue
Nigeria Transmission Fluid Demand
Nigeria Marine Lubricants Sales
Nigeria Aviation Lubricants Revenue
Nigeria Industrial Gear Oils Market
Nigeria Transformer Oils Market
Nigeria Turbine Oils Market
Nigeria Compressor Oils Industry
For more information about the publication, refer to below link:-
Related Reports:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249
