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One of Nigeria's largest retailers and distributors of petroleum products, Obat Oil and Petroleum Ltd. says it wants to grow to 200 retail filling stations nationwide as the country’s fuel market reshapes itself after subsidy removal, a shift that has raised prices, tightened margins and pushed marketers to rethink supply and logistics.
Fredrick Obateru Akinruntan, a Nigerian traditional monarch and oil tycoon, founded Obat Oil in 1981 and built it from a single outlet into a widely recognized indigenous downstream brand.
In an interview recently published by Punch Nigeria, Obat’s group managing director, Akinfemiwa Akinruntan, said the company plans to add new outlets while also expanding through franchising. The idea, he said, is to grow faster without losing control of standards that shape customer trust, including product quality and pump accuracy.
Obat is betting that physical infrastructure will be a key advantage in the next phase of Nigeria’s downstream business. Its core assets include storage and handling facilities in Apapa, Lagos, where it operates tank farms and a private jetty that supports the receipt and movement of petroleum cargoes.
The company says it has been upgrading those Apapa operations, highlighting a 160 metre jetty and modern tank farms that run around the clock to improve turnaround time and reduce supply gaps. An industry profile of the depot describes it as a licensed facility with storage capacity of about 65 million liters across nine tanks, handling products that include petrol, diesel, kerosene and aviation fuel. The profile also notes that the jetty can discharge cargoes of up to 25,000 metric tons.
That kind of storage and logistics muscle matters more in a market where prices are no longer held down by subsidy. Marketers now face sharper swings in supply costs, while consumers respond quickly to price changes, often cutting back or shifting buying patterns.
Obat also sees new dynamics emerging from the ramp up of the Dangote refinery, which is altering sourcing patterns and delivery cycles. Akinfemiwa Akinruntan said Obat has had a commercial relationship with the Dangote Group since 2017, including storage and distribution support for imported products before the refinery became operational. He said discussions continue around areas where Obat can help move product efficiently.
Technology is another plank of the strategy. The managing director said Obat has deployed enterprise digital systems, including ERP platforms designed to provide real time visibility across the business, from depot operations to retail performance. The goal, he said, is tighter control, faster decisions and better accountability.
Regulation remains part of the equation. The Nigerian Midstream and Downstream Petroleum Regulatory Authority oversees licensing and compliance in the sector, and Obat’s management said engagement with regulators has been constructive. The company argues that stable policy, more storage and better transport infrastructure would help smooth supply and reduce shocks.
Distribution is still Nigeria’s big bottleneck. The market depends heavily on trucking, leaving fuel supply vulnerable to gridlock, poor roads and security risks on major routes. Marketers have long argued for more functional pipelines and rail links to cut haulage costs and reduce disruptions. Obat says it is working to optimize its own logistics while pushing for wider investment that would make supply chains more efficient.
The company is also positioning for a gradual energy transition. Akinfemiwa Akinruntan said Obat is investing in liquefied petroleum gas and compressed natural gas infrastructure, with pilot projects underway in Ondo and Ogun states and commercial operations targeted before the end of 2026.
Obat did not disclose how much it plans to invest in the station buildout or which states will get the bulk of new outlets. Still, the message from management is clear: as competition intensifies, the company wants to lean on hard assets like tank farms and a jetty, plus digital systems and tighter controls, to keep products moving and customers coming back.
