How To Become A Oil Marketer In Nigeria (An Expert Guide)

How To Become A Oil Marketer In Nigeria–

Nigeria is the world’s sixth-largest crude oil exporter. As a result, the country is one of the greatest areas to enter into the oil sector because it has significant comparative advantages over other African oil-producing countries. Nigeria has long been a popular destination for foreign investment and gas exploration. There are numerous opportunities in the Nigerian oil and gas business, including distribution, storage, and selling of oil products. An oil marketer will be responsible for delivering oil goods to factories, workshops, restaurants, government offices, filling stations, banks, cafes, and even individuals’ houses. This post will explain how to become an Oil Marketer in Nigeria.

WORKING WITH A LOCAL PURCHASE ORDER

You can start your oil marketing firm with no capital and yet make a lot of money if you use a Local Purchase Order (LPO). A Local Purchase Order is an agreement between you and the company that requires oil goods. The contract will include information such as the date of product delivery, payment conditions, quantity, and quality. A marketer with a Local Purchase Order will only need to establish how the goods will be delivered to the consumer and will then be paid immediately. In other words, you will function as a liaison between the petroleum firms and the customer. Typically, petroleum corporations handle the paperwork and certificates required to conduct this oil marketing operation. Many oil marketers who have a Local Purchase Order work out of small offices where you can meet with them.

How To Become A Oil Marketer In Nigeria

If you want to work as an independent oil marketer in Nigeria, follow these steps to get started.

SELECT THE SERVICES YOU WANT TO PROVIDE.

The oil and gas industry is multi-divisional, with a variety of downstream industries in which you can get involved. These services include the following:

• Owning a Filling station
• Marketing and retailing of Lubricants
• Cooking gas supply
• Diesel supply

You can choose to specialize on one part of oil marketing as an entrepreneur and expand your services as your firm expands.

Read Also: Complete List Of Oil Producing States In Nigeria (2021)

FORM A BUSINESS PLAN

Following your decision on the services you wish to offer, the following stage is to create a business strategy for your oil marketing company. A business plan will assist you in anticipating the obstacles and difficulties that your company will face.

• Business Overview
• Competitive advantages
• Market Overview: The Opportunity & Solution
• Competition
• Source of Capital
• Location of business

The Corporate Affairs Commission must be notified of your registration.

To avoid legal issues, it is critical that you register your company with the Corporate Affairs Commission (CAC). The fee of registering with the Corporate Affairs Commission is determined by the nature and size of your oil marketing firm.
Registering your business gives you more credibility and gives you the option to do business with the government and large corporations.

GETTING YOUR HANDS ON A PIECE OF LAND

The next step after registering your business name is to purchase land for your oil marketing company. If you’re going into petroleum distribution, this is extremely important. Your business should be located in a commercial area that is both conveniently accessible to customers and gets a lot of traffic.

LAND SURVEY

A surveyor will be required to ensure that the land is suitable for the construction of a filling station.

GET A FIRE CERTIFICATE

Before beginning operations, every oil marketing firm must get a fire certificate. The state fire service can provide you with a fire certificate at your location.

OBTAIN AN APPROVAL LETTER

In the state of operation, the state planning authority issues a letter of approval. Before a filling station may be built or operations can commence, a letter of consent is required.

GET A COPY OF A POLICE REPORT

A police report can be obtained from any police station near your place of business. A police report is essential to demonstrate that your business will not pose a traffic hazard to the general public.

GET A CERTIFICATE OF TAX CLEARANCE

Obtain a tax clearance certificate from your state’s Internal Revenue Service.

GET A PERMIT FROM THE DEPARTMENT OF PETROLEUM RESOURCES

The Department of Petroleum Resources (DPR) in the state where your business will be located will issue a DPR permit to you. Other necessary paperwork required for the establishment of an oil marketing company are also issued by this department. Processing time for the DPR permit is 4-14 days. To receive a DPR permission, you’ll need the following documents:

• An incorporated company Tax clearance of three {3} years
• Certified True Copy {CTC} of your article
• Memorandum of association
• Site Survey of the station
• Survey Plan
• Pressure test certificate
• A police report of traffic hazard
• Fire and safety report
• Building Plan
• Certificate of occupancy / customary right of occupancy.

You can now apply to the Department of Petroleum Resources for an inspection of the proposed site using these documents and an application letter.

GET A BULK PURCHASE AGREEMENT AND A LIFTING RIGHT

After receiving a storage license from the Department of Petroleum Resources (DPR), you must contact Petroleum Pipeline Marketing Company (PPMC) to obtain a lifting right and a bulk purchase agreement.
As a wholesaler, you can use this document to market petroleum products.

ALLOCATION OF DEPOT

The final step before you can begin operating your oil marketing company is to allocate a depot. You can get petroleum goods from the nearest Nigeria National Petroleum Corporation depot if you have a depot allocation (NNPC).

BRAND AND MARKET YOUR BUSINESS

It is critical to your oil marketing company’s brand and marketing to network with firms and organizations that will require your services. You can advertise on billboards and ask your current clients to refer new consumers on your behalf.

HIRE AND TRAIN EMPLOYEES

You’ll need to hire people to manage various elements of the business as your oil marketing firm expands. The success of your company is mostly determined by your staff. Make sure these people are well-trained in areas like customer service, bookkeeping, and so on.