Petroleum products are useful materials derived from crude oil (petroleum) as it is processed in oil refineries. Major products of oil refineries includes asphalt, liquefied petroleum gas, diesel fuel, lubricating oils, fuel oils, gasoline, kerosene, paraffin wax, tar, petrochemicals.
The importance of engine oil cannot be over emphasized. Oil is the life of any engine. Its main role is to provide lubrication to moving parts and transfer heat. It keeps the moving parts from grinding against each other causing wear and damage.
The demand for engine oil in Nigeria is from vehicle owners, generators owners, industries and motorcyclists. Engine oil is used by both petrol and diesel engine oil, though in different grades. The petrol engine oil are used in serving passenger car (light cars) while diesel engine oil are used in servicing generators (small and big) and also for heavy cars (diesel cars). There are still grades of diesel engine oil (monograde and multigrade) monogrades are commonly used in Nigeria, although people are now beginning to appreciate Multigrades. The viscosity of the oil is a function of the grade.
Viscosity is the measurement of how thick the oil is. Multi grade oils are rated typically with 2 numbers which show:
1) The thinness (viscosity or how runny it is!) at low temperature (W=winter).
2) The thickness (viscosity or how sticky it is!) at high temperature.
The first number denotes the weight of the oil when cold and the second number denotes the weight of the oil when operating at optimum temperature.
The raw materials required for the production of Lubricants are readily available in Nigeria. It can be sourced from virgin material or through recycling.
The production process for engine oil involves procurement of base oil from refineries; the procured base oil is now filled into the blending plant after which additives such as detergents, anti-corrosive chemicals, dispersants are added. Heating and agitation simultaneously take place to achieve blending of the oil with the chemicals.
After blending, the product is allowed to cool down before being filled into various containers such as drums and kegs. Prospective investors can be assisted in terms of formation, production and sourcing of inputs including production machines.
The Lube market consists of two major segments, automotive and industrial, having a market share of 70% and 30%, respectively. Most of the competition is crowding into the first category. In the automotive segment, while cars, Generators and two or three wheelers segment accounts for 65% of the market, diesel operated engines, trucks and other heavy vehicles have the bulk share of 35%.
The lubricating oil and grease are one of the most important sectors of the petrochemical industry. The size of lubricating oil and grease market in Nigeria is estimated at over #700 billion and is growing at around 3.5% annually.
Scope of the Report
The market for Nigeria lubricants is analyzed in terms of volume by the below-mentioned classifications.
By Type
●Mineral Oil
●Synthetic Oil
●Bio-Based Oil
●Greases
By Application
●Transportation
○ Passenger Vehicles
○ Commercial Vehicles
○ Aviation
○ Marine
●Industrial Equipment & Machinery
Population： 180,000,000