KEY POINTS

• Obat Oil plans to grow its retail network to 200 stations across Nigeria through direct builds and franchising
• The company is leaning on Apapa tank farms, a private jetty and technology upgrades to manage supply volatility
• Management says subsidy removal and the Dangote refinery are reshaping competition in the downstream sector.

Obat Oil and Petroleum Ltd., one of Nigeria’s biggest indigenous fuel retailers, says it plans to expand its retail footprint to 200 filling stations nationwide as the downstream market adjusts to life after fuel subsidy removal.

The company, founded in 1981 by Nigerian monarch and energy entrepreneur Fredrick Obateru Akinruntan, has grown from a single outlet into a major distributor of petrol, diesel and aviation fuel.

The planned expansion would deepen its presence across several states at a time when higher prices and tighter margins are forcing marketers to rethink how they operate.

Speaking in a recent interview published by Punch Nigeria, Obat group managing director Akinfemiwa Akinruntan said the company would combine new company owned outlets with franchising to accelerate growth while keeping tight control over quality and pump accuracy.

Infrastructure as a competitive edge

Obat is betting heavily on physical infrastructure to stay ahead in a volatile market. Its operations are anchored in Apapa, Lagos, where it owns and operates tank farms and a private jetty used for receiving and moving petroleum cargoes.

The company says recent upgrades include a 160 metre jetty and modern storage facilities that run continuously to cut turnaround time and limit supply gaps. Industry data puts the depot’s storage capacity at about 65 million liters across nine tanks, with the ability to handle petrol, diesel, kerosene and aviation fuel. The jetty can reportedly discharge vessels carrying up to 25,000 metric tons.

Such assets have become more valuable since prices were deregulated, exposing marketers to sharper swings in landing costs and sudden shifts in consumer demand.

Obat is also adjusting to new supply dynamics linked to the gradual ramp up of the Dangote refinery. Akinfemiwa Akinruntan said the company has worked with the Dangote Group since 2017, providing storage and distribution support for imported products, and discussions continue on future collaboration.

Alongside bricks and mortar, Obat has invested in enterprise digital systems that provide real time visibility across depot operations and retail outlets. Management says the goal is faster decision making, stronger controls and clearer accountability.