Frost & Sullivan (F &S) has estimated that the offshore oil and gas paints and coatings market in Nigeria and Angola would hit $1.13 billion in 2019.

This was contained in a new report titled: "Analysis of the Offshore Oil & Gas Paints and Coatings Market in Nigeria and Angola", the report stated that the availability of raw material and local manufacturing capabilities play a vital role in driving the growth in the category.

"At the total market level, this research outlines market drivers and restraints, forecasts and trends, and a market share with competitive analysis. Then, each country is examined separately in terms of volume forecasts and market share by segment (marine, industrial protective, and can and coil). The study concludes with strategic recommendations," said Abdullah.

The report stated that Nigeria local offshore oil and gas paints and coatings production will exceed imported volumes by 2019, with partnerships between local and international companies playing a vital role in supporting the growth.

Abdullah further stated that the subsidisation of manufacturing makes Nigeria and Angola vital to the production of offshore oil and gas paints and coatings in Africa, with the goal of African needs being fulfilled by African countries.

"The drop in crude oil prices has reduced the base costs of paint through a reduction in raw material cost of 8.3 per cent, driving competitive pricing and consumption," he added.

According to the report, low transportation costs of raw materials will help ensure cost-competitiveness and facilitate construction of local production facilities.

Suppliers could opt to import raw materials and establish mixing plants to blend them, as import duties are lower for unfinished than for finished goods, the report said.

"While in-country manufacturing is a must-have, building a brand reputation will be essential for long-term, sustainable growth. Partnerships between local and international companies will speed up the development of high-quality products and assist offshore oil and gas paints and coatings manufacturers in meeting demand in the Nigerian and Angolan markets," Abdullah added.