Chineme Okafor in Abuja
The Nigerian National Petroleum Corporation (NNPC) on Tuesday said its downstream subsidiary, the NNPC Retail Limited, now controls up to 14 per cent of the market share of downstream petroleum business in Nigeria.
A statement from the corporation in Abuja quoted its Group Managing Director, Dr. Maikanti Baru, to have made this disclosure at the first to fifth Annual General Meeting (AGM) of the retail arm.
The statement was signed by NNPCâ€™s Group General Manager, Public Affairs, Mr. Ndu Ughamadu. In it, Baru, equally stated that the retail arm had become the market leader in the sector.
He noted that it was also poised to establish more mega stations in the country, adding that the corporation was in the process of identifying the areas where such large mega stations would be economically viable when sited.
Baru, explained that NNPC Retail would also continue to set up standard stations that would fit into the domains where they operate, disclosing that the focus of the management of NNPC, as owners of the company, was to ensure that its stations were in every nook and cranny of Nigeria.
He described the AGM as a landmark event, noting that it was the first since the company was established in 2002.
According to the statement, the retail outfit commenced operations in August 2002, when its first retail outlet was inaugurated in Lagos to market petroleum products to the public.
It said NNPCâ€™s entry into products retailing was initially a strategic move intended to provide the corporation with a vehicle for intervention in the market during periods of emergency and avoidable supply disruptions, serve as benchmark for key players in the distribution chain and ensure safe, orderly and profitable retailing of products in the country and is also a vehicle to achieve NNPCâ€™s world class vision by integrating its upstream and downstream businesses in a manner comparable to other national and international oil companies practices.
However, Baru said: â€œTodayâ€™s AGM is in line with our drive to sanitise all our books and bring them to currency, the management of the NNPC is committed to ensuring that all the books of all the entities within the NNPC are up to date.â€
According to him, the AGM combined all the accounts of 2012, 2013, 2014, 2015 and 2016 which had all been audited by external auditors and submitted to its board of directors, who in turn had recommended them to the shareholders at the AGM.
He also enjoined the management of NNPC Retail to focus on its non-fuel products and services, particularly those with the potential to make a lot of profit.
Baru according to the statement, said the AGM provided the management the opportunity to review the performance of NNPC Retail.
He stressed that the company was set up initially as an intervention force to ensure that NNPC could intervene in the supply of petroleum products whenever it was needed.
He said the company had since inception lived up to its billing and played a major role in intervening during periods of supply shortfalls.
Similarly, the statement quoted the chairman of the board of directors, who is also NNPC Chief Operating Officer (COO), Gas and Power, Mr. Saidu Mohammed, to have expressed the commitment to work with the management and staff of the company to enhance its non-fuel business through the incorporation of fast food outlets, Liquefied Petroleum Gas (LPG) and super markets into some of NNPC filling stations that have adequate space.
Mohammed said: â€œWe are committed to growing the NNPC Retail business particularly to drive the market share much higher and by expanding the reach through filling stations directly owned or through affiliate stations.â€