Obat Oil Sets Sights on 200 Retail Stations Nationwide
Obat Oil is accelerating its expansion plan, targeting 200 retail stations across the nation. In a revealing conversation with Dare Olawin, the company’s executive chair, Obat Oil’s Group Managing Director, Akinfemiwa Akinruntan, outlined the strategic rationale, current improvements, and the roadmap to scale. The interview sheds light on how Obat Oil intends to differentiate itself amid a competitive fuels market while strengthening its supply chain through key partnerships and robust operational practices.
Strategic Advantages Driving Expansion
Akinruntan emphasised that several core factors position Obat Oil for rapid growth. First, the company’s close alignment with national refining projects provides a predictable supply stream and pricing transparency that rivals may envy. “Our collaboration with the Dangote refinery is a critical enabler,” he noted, pointing to improved product availability and the potential for more favorable terms as volumes rise.
Second, Obat Oil is leveraging a data-driven approach to site selection. The management team prioritizes locations with strong traffic, underserved communities, and synergies with existing logistics hubs. The aim is to create a network that sustains steady fuel demand while offering ancillary services that increase per-visit value for customers.
Operational Improvements Underpinning Growth
The MD outlined a series of operational enhancements designed to boost efficiency and customer experience. These include modernized depots, upgraded dispensing technology, and an integrated supply chain system that reduces stockouts and improves turnaround times for deliveries to retail sites. By standardizing processes across new and existing stations, Obat Oil expects to deliver a consistent customer experience that builds trust and repeat business.
Additionally, the company is investing in workforce development. Training programs focus on safety, product knowledge, customer service, and environmental stewardship. Akinruntan stressed that well-trained staff are essential to the brand promise of reliable service, competitive pricing, and a safe fueling environment.
Roadmap to 200 Stations
As part of the expansion, Obat Oil plans to open roughly 200 retail stations over the next few years. The strategy involves a phased rollout, beginning with high-potential urban corridors and expanding into strategic regional hubs. Akinruntan noted that each new site will be selected not only for volume potential but also for its ability to support a cohesive brand experience, including a standardized storefront, clean fueling areas, and accessible payment options.
The company is also balancing growth with capital discipline. While the expansion requires significant investment, Obat Oil intends to deploy capital efficiently, leveraging partnerships, and potential financing arrangements that fit the company’s long-term profitability targets. The objective is to build value for shareholders while delivering reliable fuel supply and accessible retail services to customers nationwide.
Dangote Refinery: A Strategic Collaboration
The Dangote refinery collaboration is frequently highlighted as a strategic advantage. The relationship is expected to secure favorable supply terms and smoother logistics, which are essential as the retail footprint expands. Akinruntan explained that improved refinery access reduces procurement volatility and supports more predictable pricing for retailers and consumers alike. This synergy is intended to help Obat Oil compete more effectively against larger incumbents while maintaining service standards across its growing network.
What This Means for Consumer Experience
For customers, the expansion translates into more accessible fueling options, reliable supply, and a consistent brand experience. Obat Oil plans to integrate modern payment solutions and loyalty programs at its new stations, making it easier for customers to refuel and save. The intent is not only to grow the footprint but to enhance value delivered at each point of contact—from the forecourt to the convenience store aisle.
Conclusion: A Calculated Leap Forward
Obat Oil’s plan to reach 200 retail stations nationwide reflects a calculated strategy built on strategic partnerships, operational excellence, and a clear understanding of market demand. With the Dangote refinery tie-up at the center of its supply chain strategy and a disciplined rollout plan, Obat Oil seeks to strengthen its competitive position while expanding access to quality fuels and services for more communities across the country.
