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GUIDE FOR RUNNING A FILLING STATION IN NIGERIA
by Shikenan Staff Writer   on Sat, September 3, 2011  - 4 COMMENTS
 
Guide for Running a Filling Station in Nigeria

 Do you want to have your own filling station in Nigeria? There are many things to consider if you are planning to have your own business. You have to know the pros and cons of being an entrepreneur; you also have to be ready when your business seems to fail during the first few months of its existence.

 WHAT IS BRANDING?
Whether you want to be an independent marketer or you want to be a franchise holder of an already recognized brand from the top marketers, it is very essential to choose which brand is the best for you. However, you have to fully understand the advantages and disadvantages of an independent marketer and a major marketer.

ADVANTAGES AND DISADVANTAGES OF BEING AN INDEPENDENT MARKETER

 Advantages:

  1. You get to choose any name for your filling station and brand it the way you like.
  2. You do not have worry about anything else in particular except the authorities.
  3.  You get to choose a representative and an assistant representative to represent your own company at the NNPC’s Petroleum Products Marketing Company (PPMC) Depot nearest to you.
  4. The great advantage of this is that you can get N9 naira profit per liter on each petrol product you lift.


Disadvantages:

  1. You will be required to lift a full tank any time you need to load up. For instance, the cost of a full tank of petroleum bank draft is N1, 677,000; the full tank is usually 30,000 liters. Many station owners find it difficult to come up with this large amount. However, they can buy per 10,000 liters or 5000 liters from other independent marketers who have just bought full tanks.
  2. Many filling station owners cannot afford a tanker that will transport the product on their own, so they end up engaging the services of a haulage company which may cause delay in the delivery of the paid product.
  3. Your Depot Representative has to physically take your bank draft which is issued in the name of NNPC to the Depot and has to be physically present when you are picking your product up. In addition, this bank draft must be payable at the Central Bank in the State where the NNPC Depot is located.
  4. You have to advertise your own brand. The cost of marketing is not cheap at all and so be ready to spend a huge amount of money to create goodwill and trust among your potential customers.
  5. Most independent marketers who have their own tankers do not have insurance on these tankers, and this makes them incur heavy debts when accident happens.
  6.  As an Independent Marketer and a member of Independent Petroleum Marketers Association of Nigeria or IPMAN, you will have to pay a sum of 5,000 Naira each time you load. N2, 000 is for the association fee while the remaining 3,000 is for insurance. The advantage of having this insurance payment is that the Association will reimburse you the amount of 1 Million Naira when inevitable circumstances causing accidents during the transportation of your product happens.
  7. You have to employ you rcompany’s personnel.


The Duties of Your Representative

 For independent marketers, it is a MUST to have a representative at the PPMC Depot. The Representative must do the following:

  1. Represent the interest of the filling station at all times
  2. Submit bank draft for petroleum products when the station wants to lift product
  3.  Monitor and supervise the lifting of products for the station
  4. Represent the station at the Independent Marketers Branch of NUPENG
  5.  contest for post on behalf of the station at IMB, if he so desires

The Products in Nigeria

 The three major products that are sold in Nigeria stations are:

  1. AGO-Automotive Gasoline Oil (Diesel)
  2.  PMS-Premium Motor Spirit (Petroleum)
  3. DPK- Dual Purpose Kero (Kerosene)

Note:  The product you choose to sell will largely depend on the location at which your station is located; for instance, if your station is located along a major expressway, selling AGO and PMS will surely give you the profit you need.


ADVANTAGES AND DISADVANTAGES OF A MAJOR MARKETER

Advantages:

 

  1.  You will get to open up a filling station using the name of a major marketer, for which you will be called a franchisee or a franchise holder.
  2.  You will use the brand name of an already established oil company. These include companies like AP, OANDO, CONOIL, TOTAL, AGIP, etc.
  3.   You will get to enjoy the support and the customers of your chosen marketer.
  4. You will not have to worry about advertising campaign as your chosen established company will take care of it for you.
  5. You don’t need to appoint a marketer as well, as the oil company already has a marketer representing them at the Depot.
  6. Payment for petroleum products is trouble-free, as you will pay into the account of the company and they will bring your product to the station in time. 

List of personnel to employ

 Whether you chose to have your own brand or chose to be a franchise holder, there are things to consider which will serve as your guide for running a filling station in Nigeria.

Attendants
The attendants will man the pumping machines at all times and they will be in charge of dispensing petroleum product. The number of attendants that you will need to employ will be determined by the number of machines that are available at the station. These gasoline attendants are also responsible to remit the cash they make to the station’s Accountant/Cashier. The attendants could be in two shifts; morning/afternoon, day/night.

Supervisor
This is the person who is in charged of monitoring the staff at the station. His duty is to see that all personnel perform their jobs satisfactorily at all times.
 

Accountant/Cashier
Filling stations handle heavy volumes of cash daily, and this is the person who is in charge of collecting the cash from the attendants.
 
Manager
This is the person who will be in charge of the overall operation of the station. Some companies that cannot afford to employ more personnel delegate to the manager the duties and responsibilities of a supervisor as well. As a manager, they are obliged to know and completely understand the guide for running a filling station in Nigeria.

 SECURING YOUR FILLING STATION
This is another important aspect that must not be taken lightly. Unfortunately, the problems most filling stations face nowadays is the issue of security. Often, they are robbed; sometimes, they are raided in the middle of the night. What most stations need to do to combat this situation is to employ the services of private security personnel. These personnel work during the day alternating with another security guard who will be working at night.

Another way of securing your filling station against robbery is to ensure that you don’t keep too much cash around the station. Robbers often attack during weekends when they know the station cannot take their proceeds to the bank. To prevent this from happening in your own station in Nigeria, you should make arrangements with your bank to pick up your cash at regular intervals, even on weekends. Your manager must know this fact because this is included in the advantages and disadvantages of an independent marketer and a major marketer.

This guide for running a filling station in Nigeria will definitely help you a lot when you decide to venture on this kind of business. Whether you want to become a franchisee or make your own identity just like your childhood dream was, you must fully be aware of the advantages and disadvantages of an independent marketer and a major marketer.

 

 

 

 

 

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