Steps On How To Become An Oil & Gas Marketer In Nigeria

How To Become An Oil & Gas Marketer In Nigeria. Guide To Starting A Lucrative Petrol Filling Station Business In Nigeria

Nigeria. Guide To Starting & Running A Lucrative Petrol Filling Station Business In Nigeria

It’s on record that Nigeria is among the very top world’s oil Producing countries. In Africa, it is among the top three oil Producing countries. Oil was discovered in Nigeria in 1958 in a small community called Oloibiri in present day Bayelsa state.

Since it was discovered, oil have become the nation’s economic mainstay. Everything we do as a Nation now depends on oil Production. Most times we only talk about the producing part of this oil. We forget the fact that Nigeria even when we are among the leading producers of oil, we are still among the world’s top consumer. It’s on record that Nigeria consumes about 40 billion cubic centimeters of oil annually.

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What this means is that there is a very large market for petroleum products here in Nigeria which also includes by products. Sometimes, it has been referred to as liquid gold because of it’s heavy returns from it. There are various and different means one can make it financially and we will be discussing one of them.

I have actually shared an article on Petrol Filling Station Business Plan in Nigeria you can go through it if you are interested in becoming a petroleum filling station business owner.

We have created this article for the purpose of guiding anyone who wants to venture into the oil and gas industry in Nigeria. Now this article is all about setting up a petrol filling station here in Nigeria. There are several ways one can get into this business and be a major dealer. And we will be discussing the two of them before we go on to look at the steps that are required to start up your own petrol filling station business.

Types of oil marketers In Nigeria

From this business stand view, there are just two major types of marketers for that markets petroleum products.

There are dependent marketers and independent marketers. So if you want to go into oil marketing, you can decide to be under any of them or you can be under both categories. But before you decide on the type of marketer to be, there is a need to understand how these works. You also need to understand the benefits and challenges/disadvantages of either of them.

Let’s take a quick look at the two marketer types we will be discussing today.

Independent marketers.
These guys who are called independent marketers do own their own filling station that is been registered under their name, they also buy products directly from NNPC which is the Nigeria National pretroleum Corporation. They also have their representatives or an assistant at the PPMC.

Advantages of being an independent Oil marketer In Nigeria

1. Unlike the dependent marketer which we will discuss much later, you are completely in charge of your own petroleum Business. There are some limitations that hinders the progress of dependent marketers that don’t hold a sway on you. Which means you have the freedom to navigate your business in any direction and in any way that you deem fit.

2. As an independent marketer You dealings are directly with the NNPC. Which means, you buy oil price at a very cheap rate. This is an advantage you hold over been under a franchise.

3. More profitable. If the aforementioned is true and it is true, then you will make more and more gain. This is where been an independent marketer becomes very sweet and advantagous. But for a dependent marketer the dispensing of price will in most cases be fixed by the franchiser and this limits the profit margin

Disadvantages of being an independent Oil marketer In Nigeria

1. There is a minimum amount of quantity of petroleum which is required by NNPC. From our resesrch team report, there is a required amount of liters of petroleum you are to buy as an independent marketer. As an independent marketer you are to purchase at least 33,000 liters of petroleum products from a depot.

2. Increased cost. When you are under a franchise, you don’t spend as much as you would have spent since you are running and funding all aspects of your business by yourself. You can’t stand alone as an independent marketer. You have to join an association called IPPMAN (Independent Petroleum Products Marketers Association of Nigeria). In fact you are compelled to join this association. There is a compulsory fee you are required to pay called union charge. This fee is paid each time you lift a product. The price as at May 2020 is N10 (ten thousand naira).

3. As an independent oil marketer, your petroleum oil supply, are sometimes conditioned. For independent oil marketers, they are usually so privileged to get supply of their petroleum products at any time they want to have it. But this can be halted during fuel scarcity. But for independent oil marketers, they don’t enjoy the luxury of privilege as do the dependent oil marketers.

4. There is lot of works involve. Before you are permitted to get your supplies, you ought to issue a bank draft to CBN (Central Bank of Nigeria) in the name of NNPC. Without this, you won’t be permitted to lift a any oil products from the ground as an independent oil marketer. This is why in have said it involves lots of work

Dependent marketers. What do we mean when we say someone is a dependent petroleum marketer? It simply means that, such a one holds the franchise of a major marketer. And with this understand, he can market petroleum products under the name of the major marketer which is usually the franchisor. In a long shell, everything that has to do with your petroleum filling station, and all the facilities included does not belong to you but will be branded by the franchiser. For example, Total or Oando.

Our well packaged and well detailed sample Petrol Filling Station Business Plan in Nigeria can be used to access bank loans, proposal writing and grant applications.

The business plan was recently complied after a thorough feasibility study on Printing Press Business in Nigeria was done by our experts.

To place an order, pay N20,000 to

GTBank (Guaranty Trust Bank)
Account Name – Ogumka Innocent
Account No – 0153723721

After payment text your name, send a text of your e-mail address to 09066078526 and you’ll receive your PETROL FILLING STATION BUSINESS PLAN / FEASIBILITY STUDIES STUDY.

Advantages of dependent petroleum oil marketers In Nigeria

1. Less stressful. As a dependent oil marketer, you are relieved of many stress that would have so much be on you. This is one of the major challenges been faced independent petroleum oil marketers. We have given an important example of an independent marketer where he needs to issue a bank statement to CBN before he can lift a petroleum product from the ground. But in this case, he doesn’t need to go through all these procedures. All he needs do is to pay directly into the account of your franchiser.

2. The marketing advantage. Sorting for customers is something that is not an easy one at all. And under this category, you don’t have to start sorting for clients. All you need do is to work on the already existing protocols. Remember that the franchiser in some cases is a well known and also an established brand. So you don’t need to start advertising your business again.

3. You won’t be put through the stress of having a representative at the PPMC depot anymore. This is because, you are operating under a major marketer. So the need to delegate anyone to represent you at PPMC, is totally not gonna happen.

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4. Reduced running costs. There is less cost of income while you are into this category. Which means as dependent oil petroleum marketer, you tend to spend less financially. Now, you don’t have to pay and arrange for the transportation of oil products anymore because it is your franchiser who does that. Every risks that comes in the form of shortage of supply, trucks having accidents will be eliminated.

Disadvantages of being a dependent Oil marketer In Nigeria

1. For those who are dependent, it means just one thing for them. That is the fact that they don’t have the outright freedom in their business. As a dependent oil marketer, you are subjected to the terms and conditions of the brand you represent, which in most cases is limiting.

Less profit. Talking about profit making, as a dependent oil marketer, what you make as profits is far lower than what you would have been making as an independent oil marketer. If this is true and it is true, then then the effect of it will sure show on the growth of your day Business.

We want to dive straight into the advantages of running a petrol filling station

1. It is a lucrative business.

As a Nation, Nigeria is a well known producer of oil and gas products. Infact it is on record that Nigeria supply the most petroleum products to the West. In as much as we remain one of the top most oil Producing countries in the world, we are also one of the top most petroleum and gas consumers too. If this is true, then this is big big business for you. There is just no end to your financial prosperity. As far Nigeria will always consume petroleum products, then your profits will keep soaring high ans high. Are wondering if this consumption will ever continue? Yes it. As far as the population keeps increasing, as far as the need for vehicle to function with oil and gas, then the sky is far a limit to what you stand to enjoy as in profits.

2. You don’t need to be so bothered about competition of any sort. The ocean is wide enough and very big enough to contain all the sharks.

3. We have done some research work and we have discovered that the demand for petroleum products in Nigeria has exceeded the supply chain. The demand is on the high that the supply seems to be insufficient to meeting the demand. Have you noticed that even the so called multinational oil marketing firms which includes the likes Shell and Mobil have always seek individual marketers to make up for this lack. There is one thing so certain about this business into and that’s the fact that profits are always gonna come.

It is easier to set up than ever before.

Before now, it was very very difficult to establish and run a filling station business in Nigeria. This was due to the federal government policies. But as at now, such policies have been relaxed ans better ones that favour oil markers have been put in place. Let’s draw an example. Before now, the importation of oil was done by anyone who could and that made price too high. But as at today, the importation of petroleum products is solely done by the government to curtail overpricing.

Steps to take when setting up a petrol filling station in Nigeria

What we are sharing with though very important but yet not enough to for the full establishment of a filling station. What I will advise that you do, is to go deeper by purchasing our indepth and detailed business plan on filling station. With this, you have all the necessary tools to start up a filling station business in Nigeria. For example, we have the executive summary, the current financial analysis, market projection etc.

Now let’s move on. While you are set to open a filling station Business in Nigeria, there are some very important aspect and very important steps you have to follow. There is no short cut on this.:

Step 1: Write a business plan

Can you be a farmer without your farming tools? This is for me the most vital aspects of it all. Many people will be quick to say, capital is the most important. But having a detailed and well written Business plan like what we have is the but way to go about this business. It will help you understand the direction you want your business to go. You can read up our article on the importance of having a business plan before starting a business.

Step 2: Register your business

For a business of this magnitude, you can’t do without having your business name registered. This gives you the legal right to operate in this nation. Registering your business name isnas simple as taking a walk from your seating room to your kitchen. The body responsible foe the registration of your business name is C.A.C (Corporate Affairs Commission). Click here and see how you can register your business name with ease.

Step 3: Get an ideal location for the station

So many filling station business have crumbled not because the idea was a bad one but because the idea behind the location was terribly bad. Some petrol filling station are constantly having customers while some never have as much to keep up. This is why you should situate your filling station business in a very strategic place where it will be easy for customers to locate you without been stressed. Do not think that having your filling staying stationed in a rural area is bad. Nope. A thousand times no. What you may never have is having the same profit margin as that one stationed in annl urban area.

Step 4: Begin construction of the filling station

Selecting a good location for your business, is not enough. You must start the construction of it and I will give you some details on what to do about that. Just read on. Before you stsrt the construction of your filling station, you have to obtain a permit letter that gives you the full approval to start the construction of a petroleum filling station from the Department of Petroleum Resources (DPR).

A petrol filling station should include at least the following facilities:

A minimum of three dispensing pumps

Hardcore flooring for vehicular movement

Canopy to cover the pump areas against the weather

Perimeter fencing around the station

Underground storage tanks to store the petroleum products

A bungalow to house the offices and maybe a supermarket or restaurant

Step 5: Obtain the necessary permits

Registering your business name with the corporate affairs commission isn’t just enough. But there are some regulatory bodies that are charged with the responsibility of granting you various permits before you can actually be a dealer. For example you are still going to revisit the Department of Petroleum Resources (DPR), NNPC, PPMC, and IPPMAN. The other regulatory bodies or affiliate unions are:

PPPRA – Petroleum Products Price Regulatory Agency

NUPENG – National Union of Petroleum and Natural Gas Workers

PENGASSAN – Petroleum and Natural Gas Senior Staff Association of Nigeria

Step 6: Seek for suppliers

This is where many Businesses die off. Many persons have been robbed of their money, many have been scammed of millions of naira, some have cheated out of business because they met the wrong dealers. You have to be very careful with whom you are dealing with and ensure that their products are not adulterated to be able to avoid destroying the reputation of your business before starting.
For those operating as a dependent marketer, they usually don’t have this manner of issues regarding scam or fraudster because they get their supplies from their Franchiser who happens to be the major oil marketer who in the first place gave you the permit to market oil Products.

Step 7: Hire staff

If this business will grow, then you have to employ the right staffs. This should be done after you must have finished with your construction and have obtained the necessary licenses for operation. You don’t just want to hire a staff but also you must engage them in some training exercises tool. Treat them well and they will treat your customers well and they (customers) will in turn always return back. Some of the basic personnel for running a fuel station which you will probably need as you start includes the following: a cashier, pump attendants, and maybe security guards.

Step 8: Begin operations

You are ready to begin operation. Go through all the aforementioned steps, check which and which you don’t understand and when you have been fully clarified, your business is set to begin operation. But there is one other aspect of this business that needs to be looked into and that is the Number nine.

Step 9: Market your business

This is optional and you may be wondering. Yeah it is optional. For those who are dependent oil marketers, they may not necessarily need to advertise there Business since they operating under the name of an already established brand. But for independent petroleum marketers, these ones will have to do this because it will enable them to increase the exposure of their business. We have a well documented article on how to advertise your company on Facebook and youtube to maximize your profits in business you are into.

Insurance

Now one of the top secrets in this business, is in insuring your goods. Remember when i said something about a phrase “highly inflammable”? Yeah. That’s it. Most times many dealers lose their products to fire outbreak which for me is really avoidable but should it happen is that the end of this business? A far cry from no and no. You have to insure your business against fire outbreak, theft etc.