Before you even begin to consider venturing into the oil and gas industry, there are a few factors that you need to evaluate. While Nigeria’s economy is one of the largest in Africa, its infrastructure has been lacking in recent years. Despite this, nearly all Nigerian companies, both large and small must deal with the country’s petroleum product market on a regular basis.
The market is a highly competitive one, and splitting a share of this market can prove almost impossible for new companies. Because of this, those wishing to start their own oil marketing company need to be prepared to spend a great deal of time and money advertising and networking until they have established themselves enough to compete in the petroleum product industry. Once these individuals have accomplished this difficult task, they will find that there are many advantages in being an independent oil marketer within Nigeria.
One of the greatest benefits is that it is relatively easy to set up your own business as an independent oil marketer. There are no costly startup costs or government regulations to worry about since you aren’t buying gasoline or any other products from major oil companies. You simply acquire the necessary license to operate your own company and you are good to go.
Nigeria is definitely one of the highest exporters of oil to the international market. Besides that, the country is also one of the most consumers of oil products in the world, accounting for a volume of around 40 billion cubic centimeters. This implies that there is a market for oil and petroleum products in the country, and it’s a money-spinning business to start one. One of the ways to get into the oil industry in Nigeria is through the sale of oil and its products. This by and large implies becoming an oil marketer, which we will talk about in this article.
HOW TO BECOME AN INDEPENDENT OIL & GAS MARKETER IN NIGERIA
Certainly, there are many things that you need to have in order to run a petro-fuel business of your own. It takes careful planning and preparation for the specific location you plan to erect your filling station site.
To become an independent oil marketer in Nigeria and set up your petroleum filling site, you should follow these 10 steps below:
STEP 1: DECIDE ON WHAT PRODUCTS/SERVICES YOU WILL OFFER
The decision process of your oil marketing business is the first thing to put in mind before doing any other thing. The oil and gas area is a multidivisional one with various downstream services that you can engage with. These includes
- Owning a petrol filling station
- Selling of petroleum products like lubricants
- Cooking gas supply
- Diesel supply
The truth is you won’t be able to manage all of these services at once, irrespective of how big your business is. What you should do is to zero in on one part of the oil business and extend your services as the company grows bigger.
STEP 2: HAVE A BUSINESS PLAN
Another basic thing to do before starting your oil marketing business is to write a field-tested strategy. This process can’t be ruled out because of its importance in the long run. Drafting a decent plan is an essential step in beginning any capital escalated business. The planning will help you with realizing how the business will go from start till when it will peak.
STEP 3: REGISTER YOUR BUSINESS
At the point when you have a strong marketable plan for your filling station business, you should get your business registered. One of such is enlisting your business name with C.A.C (Corporate Affairs Commission). It’s advisable to employ a legal advisor to help you in the process.
STEP 4: GET A PERFECT LOCATION FOR THE STATION
If you have been wondering why most petrol stations are situated on occupied streets, then the answer is a business of this kind thrives in a remote area. As a starter, you ought to comprehend the benefits of sitting your filling station in a good area that will bring in customers. All things considered, settling your filling station in a local region will generate some money. However, it wouldn’t measure up as when it is situated in a remote urban area.
STEP 5: START BUILDING YOUR FILLING STATION
At the point when you have chosen a decent location for your filling station, the following process is to begin the development of the structures. Note, in any case, that you need to acquire an endorsement for the setting up of the building. This is obtained from the Department of Petroleum Resources (DPR).
A petroleum filling station ought to incorporate essentially the following facilities:
- You should have a minimum of three dispensing pumps
- The floor of the frontage road should be floored very well for vehicular movement
- You should also have built a canopy roofing to cover the pump areas
- Perimeter fencing around the station
- Your storage tanks should be underground and fully made to store the petroleum products
- A lodge to house the offices and perhaps a small restaurant or eatery is also welcomed.
STEP 6: GET THE NECESSARY PERMITS
Before you can start working at a petroleum filling station, you should acquire licenses for operating the business in that area. Other than the Department of Petroleum Resources, NNPC, PPMC, and IPPMAN the other administrative bodies or subsidiary associations are: PPPRA, NUPENG, PENGASSAN.
- OBTAIN A GOVERNMENT LETTER OF APPROVAL
A letter of endorsement is very important before starting your filling station activity. This endorsement is given by the state in which you are operating the business. A letter of approval is needed before the development of a filling station and before activities can start.
- OBTAIN FIRE CERTIFICATE
It’s important to note that your filling station should have a fire certificate before beginning the process. You can get a fire endorsement from the state fire service at your location
- GET A POLICE REPORT
You can obtain a Police report from any police station in your area of business. A police report is needed to show that your business won’t cause any danger to the residents.
STEP 7: LOOK FOR SUPPLIERS
After you are done with the paperwork, the next thing should be to search for your supplier. In looking for one, you need to guarantee that they are trusted and that their products are not debased to try not to obliterate the standing of your business in the starting.
In the event that you are just a tyro in the business, then try to contact your other marketers that are grounded in the business.
STEP 8: HIRE WORKERS
Now you should employ workers to help in the day by day running of the filling station. This should be at the point when you are through with the building and have gotten the basic licenses for starting the business. The workers you need in running your fuel station include a manager, a sales boy/girl, and perhaps safety officers.
STEP 9: START OPERATION
All things considered, your petrol filling station is set and done. This is when you should open the doors of your filling station to the general public to start trooping in.
STEP 10: GET YOUR BUSINESS KNOWN
Just like any other business, the oil marketing business requires marketing your products to create awareness. This is a very important step for new starters who aren’t known yet. Be that as it may, for autonomous oil marketer, they should find this way to expand the openness of their business. In this way, they will all get more patronization.
The oil industry is a very lucrative one which has made millions to many. The business doesn’t need you to have much, but by just having a good startup budget for the setup and oil purchase, then you are good to go. This article was informative about how to become an oil marketer in Nigeria. We believe you now have the idea of what’s involved in this remunerative business.