Nigerians are lovers of tasty meals and globally, vegetable oil continues to play a crucial role in the preparation of such meals.
The name, vegetable oil, is the generic term for cooking oils which are extracted from various plants such as groundnut, soya-bean, corn, cottonseed, rapeseed (canola), etc.
Initially, most households depended largely on locally sourced cooking oils and expensive imported vegetable oil products.
But recently, the market has been saturated with vegetable oils produced by companies in Nigeria. This has been largely aided by the recent government ban on access to the interbank exchange market for importers of foreign-produced vegetable and palm oils.
Finally, after a long period where the vegetable oil market in Nigeria was dominated by foreign brands like Turkey and Kings, local brands can now thrive and compete favourably.
In this article, we would examine the various local brands battling for market share and see which one has a chance of emerging as the winner.
Major brands in the market
A research by Nairametrics shows that the market currently has more than 10 brands (local and foreign) doing battle for market share.
Key players in the market include Mamador and Devon King’s brands produced by PZ Wilmar Limited, a subsidiary of PZ Cusson Nigeria Plc, and Sunola Oil brand which is produced by Sunseed Nigeria Limited, member of Kewalram Chanrai Group. The company recently commissioned its new production plant in Zaria. This, according to the company, will further boost its market penetration, mostly in the northern part of the country.
Other brands are Grand Oil, a product of Grand Cereals and Oil Limited, and Power Oil by Dufil Prima Foods Plc, makers of Indomie Instant Noodles.
More companies in the sector are Nosak Group, makers of Famili Pure Vegetable Oil, Sidex Nigeria Limited, makers of Lesieur Pure Vegetable Oil and other foreign-based companies whose products have found their way into the Nigerian market, like Wesson Canola Oil.
The health scare
Nutritionists have attributed the prevalence of heart-related diseases to the intake of vegetable oil brands which contain components that are not heart-friendly.
According to a nutritionist, Mr. Kingsley Okey, most vegetable oils in the market are preserved by a process called partial hydrogenation. A process whereby a fraction of the unstable polyunsaturated fats are converted to much more stable trans fats. And it is these trans fats that give commercial vegetable oils their unnaturally long shelf lives.
Producers of vegetable oil in the country are now positioning their products based on consumers’ health consciousness, while also paying attention to product repackaging and visibility.
Also, brands in the country now rely on endorsements from Nigerian Heart Foundation (NHF) and Nutrition Society of Nigeria (NSN) to reinforce the confidence consumers have in made-in-Nigeria brands.
The various regulatory agencies in the country such as the Standard Organization of Nigeria (SON) among others have also embarked on series of sensitisation programs on the need to buy only cholesterol-free vegetable oils.
A war of prices and sizes
A visit by Nairametrics to some markets and retails outlets revealed that the vegetable oil market is dominated by five brands namely Sunola Oil, Grand Oil, Power Oil, Mamador and Devon King’s.
These top brands have adopted some marketing elements such as product segmentation into more affordable smaller sizes, repackaging and availability to enhance consumer attention and acceptance of their products over foreign brands.
In the “battlefield”, price has become a very important factor as the various brands battle for market share and profitability. Interestingly, prices for different carton sizes of the vegetable oil brands differ depending on the market location.
A 3-litre plastic bottle of Grand Oil sells for N2,997; Power Oil sells for N2,480; Devon King’s sells for N3,000. A 1-litre bottle of Devon Kings Oil sells for between N900 and N1,000; Mamador Oil sells for N870, while Sunola Oil goes for N950. The 5-litre gallons of Devon King’s and Sunola Oil sell at N3,750 and N4,300 respectively. Also, 75cl of Grand Oil, Power Oil and Mamador Oil sell for N590, N625, and N850 respectively.
What consumers say
A sample of opinions conducted by Nairametrics on vegetable oil preferences in some parts of Lagos shows that consumers are very conscious of the types of vegetable oils they use.
Mrs. Esther Chigui, a mother of two, noted that she uses two brands (Sunola Oil and Power Oil) interchangeably, depending on their availability, but noted that Sunola Oil bubbles when frying with it, while Power Oil gets congealed when it comes in contact with cold items for long, or when put in the refrigerator.
A housewife, Mrs. Oyedokun, noted that Power Oil turns black after using it thrice, depending on what it is fried with.
In her words:
“If you fry ‘panla’ fish thrice with Power Oil, it becomes dark, a situation which has pushed me away from the brand.”
Speaking on the packaging of vegetable oils by manufacturers, Mr. Kenny Adewale, who owns a retail outlet, revealed that Power Oil pioneered the sachet pack market.
He also noted that over time, packaging had been a major challenge in the vegetable oil industry but they have all overcome it.
In his words:
“Before now, they never wanted to deviate from their traditional ways of packaging their products. Transiting from tin gallons to plastic, and now sachet packs is a step that has revolutionised the industry.”
Another respondent, Nkechi Okoro said that she prefers Devon King’s because it has become a household name that has stuck with her, but she noted that other edible oil brands in the market are good, especially in light of their endorsements by the regulatory authorities.
A major distributor of cooking oils around Ogba, a suburb in Lagos, who preferred anonymity said that she sells various edible oil brands and they all enjoy patronage.
“From my records, the five brands are doing well, even though I have other imported brands in my store that are also doing well.”
In our Nairametrics Poll on Twitter, we listed 3 of the top vegetable oil brands and participants voted for their favourites. Power Oil scored a total of 48%, while Devon King scored 30%, and Mamador Oil had 24%.
Which of these brand of vegetable oil stands out for you?
Kindly RT after voting.
— Nairametrics (@Nairametrics) July 2, 2018
In the comment sections of our polls, run across our social media platforms, there were divergent opinions of the products by consumers, which indicated that the choice of brands is mostly influenced by price, size, and taste.
A respondent on our Facebook said that the King’s brand is cheaper and he gets value for money. Another respondent commented that he prefers the Power Oil Brand.
Devon king oil
— Maria Odobo (@maria_odobo) July 4, 2018
The competition for market share is very stiff as brands continue to battle. While Power Oil won in the poll, we cannot announce it to be the undisputed winner, as there were still complaints by consumers.
It is also apparent that the other brands are holding their own in this battle as all brands are being used by consumers. Also, there is no distinct quality in any brand that was mentioned by consumers and distributors.
There are still many opportunities that the manufacturers can leverage for profitability. At this point, the race may still be won by the brand with the most visibility and best strategy for capturing customer loyalty.
COVID-19 Update in Nigeria
On the 6th of July 2020, 575 new confirmed cases and 9 deaths were recorded in Nigeria bringing the total confirmed cases recorded in the country to 29,286.
The spread of novel Corona Virus Disease (COVID-19) in Nigeria continue to record significant increase as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 29,286 confirmed cases.
On the 6th of July 2020, 575 new confirmed cases and 9 deaths were recorded in Nigeria, having carried out a total daily test of 1,831 samples across the country.
To date, 29,286 cases have been confirmed, 11,828 cases have been discharged and 654 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 152,952 tests have been carried out as of July 6th, 2020 compared to 151,121 tests a day earlier.
COVID-19 Case Updates- 6th July 2020
- Total Number of Cases – 29,286
- Total Number Discharged – 11,828
- Total Deaths – 654
- Total Tests Carried out – 152,952
According to the NCDC, the 575 new cases were reported from 20 states- Lagos (123), FCT (100), Delta (58), Edo (52), Ogun (42), Katsina (24), Bayelsa (23), Rivers (22), Borno (19), Plateau (18), Ondo (18), Oyo (17), Kwara (15), Osun (13), Enugu (9), Nasarawa (7), Abia (6), Cross River (5), Kaduna (3), Ekiti (1).
Meanwhile, the latest numbers bring Lagos state total confirmed cases to 11,367, followed by Abuja (2,281), Oyo (1,530), Edo (1,435), Delta (1,285), Kano (1,268), Rivers (1,205), Ogun (1,047), Kaduna (868), Katsina (628), Borno (547), Gombe (520), Bauchi (516), Ebonyi (503), Ondo (474), Plateau (454), Abia (391), Enugu (381), Imo (352), Jigawa (318).
Kwara state has recorded 284 cases, Bayelsa (268), Nasarawa (232), Osun (178), Sokoto (153), Niger (122), Akwa Ibom (112), Adamawa (99), Benue (97), Kebbi (84), Zamfara (76), Anambra (73), Yobe (61), Ekiti (45), Taraba (22), while Kogi state has recorded 5 cases.
Lock Down and Curfew
In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.
The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.
On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020.
|Date||Confirmed case||New cases||Total deaths||New deaths||Total recovery||Active cases||Critical cases|
|July 6, 2020||29286||575||654||9||11828||16804||7|
|July 5, 2020||28711||544||645||11||11665||16401||7|
|July 4, 2020||28167||603||634||6||11462||16071||7|
|July 3, 2020||27564||454||628||12||11069||15867||7|
|July 2, 2020||27110||626||616||13||10801||15693||7|
|July 1, 2020||26484||790||603||13||10152||15729||7|
|June 30, 2020||25694||561||590||17||9746||15358||7|
|June 29, 2020||25133||566||573||8||9402||15158||7|
|June 28, 2020||24867||490||565||7||9007||14995||7|
|June 27, 2020||24077||779||558||4||8625||14894||7|
|June 26, 2020||23298||684||554||5||8253||14491||7|
|June 25, 2020||22614||594||549||7||7822||14243||7|
|June 24, 2020||22020||649||542||9||7613||13865||7|
|June 23, 2020||21371||452||533||8||7338||13500||7|
|June 22, 2020||20919||675||525||7||7109||13285||7|
|June 21, 2020||20242||436||518||12||6879||12847||7|
|June 20, 2020||19808||661||506||19||6718||12584||7|
|June 19, 2020||19147||667||487||12||6581||12079||7|
|June 18, 2020||18480||745||475||6||6307||11698||7|
|June 17, 2020||17735||587||469||14||5967||11299||7|
|June 16, 2020||17148||490||455||31||5623||11070||7|
|June 15, 2020||16658||573||424||4||5349||10885||7|
|June 14, 2020||16085||403||420||13||5220||10445||7|
|June 13, 2020||15682||501||407||8||5101||10174||7|
|June 12, 2020||15181||627||399||12||4891||9891||7|
|June 11, 2020||14554||681||387||5||4494||9673||7|
|June 10, 2020||13873||409||382||17||4351||9140||7|
|June 9, 2020||13464||663||365||4||4206||8893||7|
|June 8, 2020||12801||315||361||7||4040||8400||7|
|June 7, 2020||12486||260||354||12||3959||8173||7|
|June 6, 2020||12233||389||342||9||3826||8065||7|
|June 5, 2020||11844||328||333||10||3696||7815||7|
|June 4, 2020||11516||350||323||8||3535||7646||7|
|June 3, 2020||11166||348||315||1||3329||7522||7|
|June 2, 2020||10819||241||314||15||3239||7266||7|
|June 1, 2020||10578||416||299||12||3122||7157||9|
|May 31, 2020||10162||307||287||14||3007||6868||7|
|May 30, 2020||9855||553||273||12||2856||6726||7|
|May 29, 2020||9302||387||261||2||2697||6344||7|
|May 28, 2020||8915||182||259||5||2592||6064||7|
|May 27, 2020||8733||389||254||5||2501||5978||7|
|May 26, 2020||8344||276||249||16||2385||5710||7|
|May 25, 2020||8068||229||233||7||2311||5524||7|
|May 24, 2020||7839||313||226||5||2263||5360||7|
|May 23, 2020||7526||265||221||0||2174||5131||7|
|May 22, 2020||7261||245||221||10||2007||5033||7|
|May 21, 2020||7016||339||211||11||1907||4898||7|
|May 20, 2020||6677||284||200||8||1840||4637||7|
|May 19, 2020||6401||226||192||1||1734||4475||7|
|May 18, 2020||6175||216||191||9||1644||4340||7|
|May 17, 2020||5959||388||182||6||1594||4183||7|
|May 16, 2020||5621||176||176||5||1472||3973||7|
|May 15, 2020||5445||288||171||3||1320||3954||4|
|May 14, 2020||5162||193||168||3||1180||3815||4|
|May 13, 2020||4971||184||164||6||1070||3737||4|
|May 12, 2020||4787||146||158||6||959||3670||4|
|May 11, 2020||4641||242||152||10||902||3589||4|
|May 10, 2020||4399||248||142||17||778||3479||4|
|May 9, 2020||4151||239||127||11||745||3278||4|
|May 8, 2020||3912||386||118||10||679||3115||4|
|May 7, 2020||3526||381||108||4||601||2818||4|
|May 6, 2020||3145||195||104||5||534||2507||1|
|May 5, 2020||2950||148||99||5||481||2370||4|
|May 4, 2020||2802||245||94||6||417||2291||2|
|May 3, 2020||2558||170||88||2||400||2070||2|
|May 2, 2020||2388||220||86||17||351||1952||2|
|May 1, 2020||2170||238||69||10||351||1751||2|
|April 30, 2020||1932||204||59||7||317||1556||2|
|April 29, 2020||1728||196||52||7||307||1369||2|
|April 28, 2020||1532||195||45||4||255||1232||2|
|April 27, 2020||1337||64||41||0||255||994||2|
|April 26, 2020||1273||91||41||5||239||994||2|
|April 25, 2020||1182||87||36||3||222||925||2|
|April 24, 2020||1095||114||33||1||208||855||2|
|April 23, 2020||981||108||32||3||197||753||2|
|April 22, 2020||873||91||29||3||197||648||2|
|April 21, 2020||782||117||26||3||197||560||2|
|April 20, 2020||665||38||23||1||188||466||2|
|April 19, 2020||627||86||22||2||170||436||2|
|April 18, 2020||541||48||20||2||166||356||2|
|April 17, 2020||493||51||18||4||159||317||2|
|April 16, 2020||442||35||13||1||152||277||2|
|April 15, 2020||407||34||12||1||128||267||2|
|April 14, 2020||373||30||11||1||99||263||2|
|April 13, 2020||343||20||10||0||91||242||2|
|April 12, 2020||323||5||10||0||85||228||2|
|April 11, 2020||318||13||10||3||70||238||2|
|April 10, 2020||305||17||7||0||58||240||2|
|April 9, 2020||288||14||7||1||51||230||2|
|April 8, 2020||274||22||6||0||44||226||2|
|April 7, 2020||254||16||6||1||44||204||2|
|April 6, 2020||238||6||5||0||35||198||2|
|April 5, 2020||232||18||5||1||33||194||2|
|April 4, 2020||214||5||4||0||25||185||0|
|April 3, 2020||209||25||4||2||25||180||0|
|April 2, 2020||184||10||2||0||20||162||0|
|April 1, 2020||174||35||2||0||9||163||0|
|March 31, 2020||139||8||2||0||9||128||0|
|March 30, 2020||131||20||2||1||8||121||0|
|March 29, 2020||111||22||1||0||3||107||0|
|March 28, 2020||89||19||1||0||3||85||0|
|March 27, 2020||70||5||1||0||3||66||0|
|March 26, 2020||65||14||1||0||2||62||0|
|March 25, 2020||51||7||1||0||2||48||0|
|March 24, 2020||44||4||1||0||2||41||0|
|March 23, 2020||40||10||1||1||2||37||0|
|March 22, 2020||30||8||0||0||2||28||0|
|March 21, 2020||22||10||0||0||1||21||0|
|March 20, 2020||12||4||0||0||1||11||0|
|March 19, 2020||8||0||0||0||1||7||0|
|March 18, 2020||8||5||0||0||1||7||0|
|March 17, 2020||3||1||0||0||0||3||0|
|March 16, 2020||2||0||0||0||0||2||0|
|March 15, 2020||2||0||0||0||0||2||0|
|March 14, 2020||2||0||0||0||0||2||0|
|March 13, 2020||2||0||0||0||0||2||0|
|March 12, 2020||2||0||0||0||0||2||0|
|March 11, 2020||2||0||0||0||0||2||0|
|March 10, 2020||2||0||0||0||0||2||0|
|March 9, 2020||2||1||0||0||0||2||0|
|March 8, 2020||1||0||0||0||0||1||0|
|March 7, 2020||1||0||0||0||0||1||0|
|March 6, 2020||1||0||0||0||0||1||0|
|March 5, 2020||1||0||0||0||0||1||0|
|March 4, 2020||1||0||0||0||0||1||0|
|March 3, 2020||1||0||0||0||0||1||0|
|March 2, 2020||1||0||0||0||0||1||0|
|March 1, 2020||1||0||0||0||0||1||0|
|February 29, 2020||1||0||0||0||0||1||0|
|February 28, 2020||1||1||0||0||0||1||0|
FG to shut Third Mainland Bridge for 6 months
The Third Mainland Bridge is the longest of three bridges connecting Lagos Island to the mainland.
The Federal Government has announced plans to shut down the Third Mainland Bridge for maintenance work from July 24, 2020.
This was disclosed by the Federal Controller of Works in Lagos, Mr Olukayode Popoola, during an interaction with the News Agency of Nigeria (NAN) on Monday July 6, 2020.
In the conversation, Popoola said that consultations were on for another phase of repair works to commence on the Third Mainland Bridge. He told the News Agency of Nigeria that the consultations were towards developing a perfect traffic management architecture that will be very efficient and effective.
According to Popoola, “We want to do maintenance work on Third Mainland Bridge very soon. Most likely on the 24th. We may close it from 24th of July.’’
“We are still working out the modalities and when we perfect the traffic management plan we will move to site. Everything being expected for the repairs of the bridge arrived the country that is why we want to start the repairs now,’’
The 11.8km bridge which has gone through series of rehabilitation works was last closed for repairs in August 2018 for 3 days of investigative maintenance check.
Thereafter, some components needed for completion of repairs were sourced abroad because they were not available locally.
Meanwhile, a monitored report from Channels suggests that the closure might last for a period of 6 months.
There has been reports of some worn-out joints of the bridge, which has raised some serious safety concerns for the users of the bridge. The federal government will be working with the Lagos State Traffic Management Agency (LASTMA) on how best traffic during this period.
The Third Mainland Bridge is the longest of three bridges connecting Lagos Island to the mainland.
The bridge starts from Oworonshoki which is linked to the Apapa-Oshodi Expressway and the Lagos-Ibadan Expressway and ends at the Adeniji Adele Interchange on Lagos Island.
It was opened for use 1990 and was the longest in Africa until 1996 when The 6th October Bridge in Cairo was completed.
FRC orders the Big Four to separate auditing from consulting services
The Big Four firms now reportedly generate the largest portions of their revenues from consultancy services.
The world’s four biggest audit firms —KPMG, PwC, Ernst & Young, and Deloitte — have been directed by the Financial Reporting Council (FRC) to plan towards separating their audit services from their consulting services.
The deadline for compliance with this directive is June 2024.
A statement that was published on the FRC website said this directive is ‘world-leading’. The statement also explained why it became imperative to separate the firms’ operations towards ensuring that they deliver the uttermost quality audit services for the good of public interest.
By the time the operational separation officially takes effect starting from June 2024, FRC said it would be expecting the following outcomes:
- That audit practice governance would prioritise audit quality and protect auditors from influences from the rest of the firm that may try to divert their focus away from audit quality.
- That the total amount of profits distributed to the partners in the audit practice does not persistently exceed the contribution to profits of the audit practice.
- The culture of the audit practice prioritises high-quality audit by encouraging ethical behaviour, openness, teamwork, challenge and professional scepticism/judgement.
- Auditors act in the public interest and work for the benefit of shareholders of audited entities and wider society.
While commenting on this development, FRC’s Chief Executive Officer, Sir Jon Thompson, said the FRC is committed to reforms on how corporate finances are reported. Further aspects of the reform package will be introduced over time, he said.
“Operational separation of audit practices is one element of the FRC’s strategy to improve the quality and effectiveness of corporate reporting and audit in the United Kingdom following the Kingman, CMA and Brydon reviews. Today the FRC has delivered a major step in the reform of the audit sector by setting principles for operational separation of audit practices from the rest of the firm. The FRC remains fully committed to the broad suite of reform measures on corporate reporting and audit reform and will introduce further aspects of the reform package over time,” Thompson stated.
Do note that the FRC reached this decision after engaging in extensive discussions with the Big Four. It was also agreed that the audit firms will submit an implementation plan to the FRC latest by October 23rd, 2020.
Recall that it was just last week when Nairametrics reported how the Big Four earned the sum of N7.53 billion as audit fees from Nigeria’s most capitalized firms in 2019. Interestingly, these firms now reportedly generate the largest portions of their revenues from consultancy services. As a matter of fact, only about 20% of their revenues now come from auditing fees.