ENYO invests N8bn in downstream business, targets expansion, acquisition

A group of Nigerian investors have invested N8billion in downstream retail business with the aim of expanding market share in the downstream sub-sector of the oil and gas sector in Nigeria.

The group, operating under ENYO Retail and Supply Ltd, is led by its Chairman, Mr Tunde Folawiyo.

Addressing journalists in Lagos on Wednesday, the Chief Executive Officer of ENYO Retail and Supply Ltd, Mr Abayomi Awobokun, stated that despite the challenges confronting the sector, his team of investors is ready to expand beyond its present market share of one per cent in near future.

According to him, “there are negative stigmas affecting the downstream sector. Past events have given it a bad name. There is a general distrust between the customers and the marketers. Nigerian economy is also another challenge. Nigerians don’t buy fuel for luxury like driving from Lagos to Akure just for sightseeing. They buy fuel for essentials and not pleasure.

“There is also the challenge of lack of basic infrastructure.  Moving of products from the depots to the filling stations is very challenging. But despite all these challenges, there is still room for growth.”

Awobokun reiterated the company’s commitment to Nigeria and outlined its achievements in less than two years of operation in the country.

“We are about 18 months old. Our major investor is Folawiyo Energy and we have invested over N8billion to build 56 retail stations across Nigeria. We have 17 filling stations that are under construction. Because we are in a competitive environment,  we placed importance on technology-driven innovations. We are trying to change the narrative. We focus on training and career growth.

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“We are set to be a major player in near future because right now, nothing much is happening in the sector. Since we are focusing only on retail business, our business model is based on available margin,” he said.

Speaking further, Awobokun said ENYO’s acquisitions of new retail stations is part of its expansion plans to provide Nigerians with trusted fuel and other quality petroleum products and services.

“We are entering into a contractual agreement with key dealers across the country to fast track rapid acquisition of stations. We believe that having stations at strategic locations will help us drive our commitment to the provision of quality fuel and petroleum products,” he added.

Recently, the company launched its Fuelled by Trust – ‘1 litre is 1 litre’ initiative – which is targeted at ensuring consumers are provided with their products value worth. Leveraging on the words ‘trust’ and ‘fuel’, Enyo Retail & Supply is reinforcing its commitment as a true customer-focused brand. Its continuous delivery of authentic and innovative products/services is fuelled by positive customer and stakeholder experiences.

ENYO Retail and Supply Ltd, which was founded in 2017, currently has over 55 stations and currently distributes over 1% of the national fuel consumption in Nigeria. The company operates in over 13 states of the country and serves over 50,000 customers daily. Products and services from the Company include Premium Castrol Lubricant, Superior Liquefied Gas, Vehicon, Reelax, and, Diesel2Door. In 2019, ENYO intends to grow its footprint to achieve up to 2% of the local market share for PMS bought from retail stations nationwide.