Investment, diversification and LPG
Having established Rainoil Limited from the outset, it was apparent speaking with Ogbechie that he could look back at how far the business has come since its inception with a sense of pride, its 20th anniversary in 2017 having provided the perfect opportunity for such reflection.
“We couldn’t help but roll out the drums and celebrate our achievements,” he reveals. “The mortality rates for startup companies are very high in this industry, and when you start with as little as we did people don’t tend to rate your chances too highly.
“What is a true delight, however, is that we have not only managed to survive for over 20 years, but equally we have expanded to provide ourselves with the perfect platform to kick on and consolidate our position as one of the most influential players in the Nigerian downstream space.”
Probed further about how Rainoil Limited was able to rise to the top in such unprecedented fashion, Ogbechie is quick to point to one of the company’s core differentiators. “We never stop investing,” he states. “From one petrol station, to two, to five, to 10, this strategy has remained a constant during the course of our history.”
Most recently this ethos has highlighted itself in the form of the firm’s aforementioned portfolio of storage depots, the organisation having commissioned its first such facility in 2011, then again in 2015, and finally the multi storage depot in Lagos which will hold the 8,000 metric tonne LPG storage facility and storage facility for jet fuels and others that is set to be opened this year.
“This ideal in particular has given us the capacity to be able to weather any new storms as they have come,” Ogbechie continues. “Challenges are inevitable in any industry, from changes in asset prices to economic cycles, but these investments have allowed the company to not only remain ahead of the curve but similarly stand up to any tests.”
Diversification has been integral to this, the firm readily keeping on top of current trends and aligning itself accordingly – evident in the company’s rising emphasis on the growth of regional LPG market.
“LPG demand has more than doubled in Nigeria in the past two years,” explains Ogbechie, “owed to the government’s renewed policies that have been encouraging the populace to use it as a daily fuel for activities such as cooking as opposed to current, less efficient alternatives like firewood and kerosene.”
Acutely aware of this, Rainoil Limited has been readily positioning itself in line with this fast-emerging market, not only through the 8,000 metric tonne storage depot that is being finalised, but equally with its wider plans to develop a second such facility in Oghara, Delta State.
“If I’m completely honest,” the GMD explains, “we are seriously considering rolling out LPG schemes and bottling plants across the country, starting in Lagos and Benin City and then ramping this up in other regions. In our eyes, the future is LPG.
“Gasoline of course remains our main focus as it accounts for approximately 70 percent of our business, but we know that new prospects will always spring up where there are changes in market dynamics, and we will continue to work to ensure we are positioned to take advantage of any major developments.”