Nigeria builds petrol stations in answer to deregulation

Dec 12, 2003 01:00 AM

As the deregulation of the downstream sector of the petroleum industry comes on full steam, independent marketers have started building many filling stations across the country to take advantage of the policy.
New filling stations are springing up everyday along the Lagos-Ibadan Expressway, Ibadan-Ife Expressway and Lagos-Abeokuta Expressway. It was discovered that new independent oil marketers are also coming up everyday while the old ones are refurbishing their filling stations.

New entrants into the oil industry are said to be banking on the huge profit expected from the industry as a result of the deregulation of the sector by the federal government.
A supervising engineer at a filling station under construction along the Lagos/Ibadan Expressway, Engr. Tolu Makanju, told that since the deregulation policy was introduced, he had been involved in the building of about 10 filling stations on the Lagos-Ibadan Expressway, Lagos-Abeokuta Road and Ibadan-Ile-Ife Road.

He revealed that unlike before when the cost of building a filling station was seen as being on the high side by some independent marketers, the story has changed as new stations are now being opened at random. He added that opening new sales outlets will boost the revenue of the entrepreneurs as they have government approval to sell at any price they wish.
The reason why some independent marketers chose to locate their filling stations along the highways was to take advantage of the high volume of motorists along the roads to make money.

Source: P.M. News
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