Marketers should embrace mergers and acquisitions in the downstream oil sector to consolidate their operations the Chief Executive Officer, Enyo Retail and Supply Limited, Mr. Abayomi Awobokun, has said.
He said this will boost their capacity to supply fuel effortlessly across the country by 2024,
Major Oil Marketers Association of Nigeria (MOMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN) and Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), are the key operators of the oil marketing and distribution segment of the oil industry.
Awobokun said the downstream subsector would experience mergers and acquisitions, which would bring about changes in its operation in the next five years. While explaining past and current developments in the subsector and projecting into its future, he said, mergers and acquisitions are inevitable in view of the conditions of operators in the sector.
Awobokun stated this in during a press onference in Lagos to intimate the public about the operation of Enyo Retail and Supply Limited.
According to him, the development became necessary in order to bring out the essential changes in the downstream operation, which has for years been plagued with problems such as infrastructure, logistics and others.
Awobokun said: “The next five years would witness new players in the downstream subsector of the Nigerian oil and gas industry. People would see new but bigger players and Enyo Retail and Supply Limited is one of them. The subsector would experience mergers and acquisitions in the next five years.
Enyo Retail and Supply Limited, he said, has acquired new retail solutions as part of its expansion plans, adding that the firm would not stop at that.
“We are entering into a contractual agreement with key dealers across the country with a view to fast-tracking rapid expansion of stations. We believe that the idea of having stations at strategic locations will help us drive our commitment to the provision of quality petroleum products in the country,” he added.
Besides, he said Enyo would be providing technology-driven services to its customers, adding that the firm has concluded plans to set the pace for the innovation in fuel retailing. He also said the company has a way of interfacing with their customers seeking redress by ensuring that customers lodge their complaints about the products offered to them.
Enyo, Awobokun said, carries out thorough investigations upon acquiring fuel stations for improved growth.
The firm, he said, finds out the topography of the area (s) where a vacant retail outlet is located in order to ascertain the strength of the structures erected there, find out whether the owner of the outlet obtained building permits/plans from the state government, whether the area (s) has commercial strength in order to ensure the marketability of the petroleum products, among meeting other requirements needed for the growth of the stations.
However, MOMAN’s Executive Secretary, Mr. Clement Isong, refused to comment on the issue of mergers and acquisitions in the future among marketers, as he claimed that he was not aware of the issue.
The Nigerian National Petroleum Corporation (NNPC) is planning to increase its retail fuel market to 30 per cent from 14 per cent by 2020. The goal, NNPC’s Group Managing Director, Dr Maikantu Baru, said would be achieved before the set date.