ENYO Retail and Supply Ltd., has announced investment of over eight billion naira into downstream retail business with the aim of expanding market share in the downstream sub-sector.
Mr Abayomi Awobokun, the Chief Executive Officer, of the company said in a news briefing in Lagos yesterday that the company was formed by group of Nigerian investors, operating under ENYO Retail and Supply Ltd, led by its Chairman, Mr Tunde Folawiyo.
He said that the objective for setting up the company was to Impact positively in the downstream sun-sector of the oil and gas industry in Nigeria.
The CEO said 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.
He explained that Enyo’s service innovations is the first to offer customers what he termed loyalty scheme which he said is an opportunity to reward its loyal buyers.
“We want to use innovations and modern designs to our advantage, to grow business in the downstream sector. Enyo doesn’t want to get involved in the business of importing products. We buy from those that import and then sell.
He then listed some of the challenges in the downstream sector which investors and government should look at such as negative stigma, supply shortages, customers distrust, congestion and poor road facilities.
He hinted that the company is looking at delving into a twenty four hours services in the future- with a combination of pumps where customers can either serve themselves, or be served by attendants, adding that the company is planning on buying over stations across the country for rapid growth.
According to him, “There are negative stigmas affecting the downstream sector. Past events have given it a bad name. There is 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,’’ he said.
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 month old and our major investor is Folawiyo Energy and we have invested over N8 billion to build 56 retail stations across Nigeria.
“We have 17 filling stations that are under construction which is expected to come on stream by June. 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.
“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,” Awobokun added.
The CEO said that 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.
He said that that 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.
He said that leveraging on the words ‘trust’ and ‘fuel’, Enyo Retail and Supply is reinforcing its commitment as a truly customer focused brand.
Awobokun said that its continuous delivery of authentic and innovative products and services is fuelled by positive customer and stakeholder experiences.
He said ENYO Retail and Supply Ltd, which was founded in 2017, currently has over 55 stations and currently distributes over 1 per cent 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, Diesel 2Door.
“ In 2019, ENYO intends to grow its footprint to achieve up to 2 per cent of the local market share for PMS bought from retail stations nationwide,’’ he said.