Over the years, the issue of deregulating the petroleum sector in Nigeria has remained a topical issue, even as the government continues to work towards reducing the importation of refined petroleum products. But Nigeria is yet to close the gap in petroleum product supply through local refining.
11 Plc is one of the few companies striving to ensure there is no gap in oil product supply through its Lube Oil Blending Plant (LOBP) at Apapa, Lagos. The company guarantees regular product availability in the Nigerian market.
The company is ExxonMobil’s sole authorised distributor and provider of Mobil lubricants in Nigeria. The company was birthed in October 2016, when NIPCO Investment Company acquired a 60% shareholding in ExxonMobil as it exited Nigeria’s downstream market. The deal was valued at N90 billion naira.
In pursuit of a special resolution passed at her Annual General Meeting in May 2017, the company changed its name from Mobil Oil Nigeria Plc to its current name, 11 Plc, pronounced Double One PLC.
11 Plc’s Business Model
As the sole authorised distributor of Mobil fuel and lubricant brands in Nigeria, 11 Plc has over 250 retail outlets across all 36 states. It also employs a distributorship and retail model.
For its retail customers, the company provides fuel and other vehicle services and refreshments through its partnership with Mr Biggs.
Its business customers are suppliers who sell under its brand to enable the cost-effective delivery of solutions to consumers.
Products
- Automotive Gas Oil (AGO)
- Household Kerosene (HHK)
- Liquefied Petroleum Gas (LPG)
- Aviation Fuel
- PMS
One of the services the company offers its customers is the option of having trucks pick up the fuels or transport them directly to their storage facilities.
11 Plc’s Board of Directors
Here are some of the members of the Board of Directors of 11 Plc.
Ramesh Kansagra- Chairman
Mr Ramesh Kansafra holds a First Class Honours degree in Microbiology from the University of London in 1973. He has over 30 years of experience managing the Group in her role as managing director of Solai Holdings Ltd. (SHL). SHL engages in oil trading, the processing of agricultural and food products, the supply of raw materials for the ceramics industry, and other businesses with a variety of investments in Africa and the UK. Its net asset value exceeds GBP 160 million. Member of the Federal Republic of Nigeria, Ramesh Kansagra received the honorary award from that country (MFR).
Adetunji Oyebanji- Managing Director
Mr Oyebanji is a University of Lagos Economics graduate (1978), after which he attended the City University of London and earned an MBA in 1980. He later joined the Mobil Oil Sales team in December 1980 and ascended through the ranks while working on different local and international assignments.
In 2002, he was appointed as a Director, and in 2008, he assumed leadership of the company as MD/CEO of Mobil Oil Nigeria. Tunji keeps his role on the board and controls the complete operations of 11PLC following Nipco Investment’s acquisition of 60% of ExxonMobil’s controlling shares in October 2016 and a Change in Control (CIC) in April 2017.
Other Directors are:
- Ramesh Virwani – Executive Director/Chief Operating Officer
- Hon. Lawal Muhammadu Idirisu- Independent Non-Executive Director
- Chief Paul Obi (KSC)- Non-Executive Director
- Rishi Kansagra- Non-Executive Director
- Alhaji Aminu Abdulkadir- Non-Executive Director
Achievements
- The company stated that it has begun to realise returns on investments from its warehousing capacity and upscaling of raw materials, packaging, and the finished imported products.
- The company has recorded successes in the lubricant portfolio because the segment is deregulated.
- Also, growth is seen in the aviation market as a result of the tank-holding capacity and fluid supply chain
- Its LPG plant has pushed domestic gas penetration and contributed to a cleaner environment as envisioned by the FG to replace firewood usage, reduce ozone layer depletion, and protect the rainforest and wildlife.
- Its CSR covers health and malaria control, science and mathematics education, youth and women empowerment and other charitable programs, especially for the less privileged within the immediate community and beyond.
- Emerged as the Best Lubricant Company of the year 2015 by the Nigeria Auto Awards.
- Became the 1st runner-up of the 2016 Best-Kept Competition for Industrial Premises (multinational/large company category) at the 45th Annual General Meeting of Industrial Companies in Nigeria.
Performance
The company is listed on the NASD with a current share price of N170. The company’s consolidated financial statements for the nine months ended September 2022 show revenue increased by 61% to N269 billion from N167.3 billion during the comparable period last year. In the same vein, profit after tax for the nine months jumped by 136% to N9.4 billion from N3.9 billion as of Q3 2021.
The outlook for the global industry may look bright on the general expectation that oil prices will continue to trend upward until the imbalance in the market is restored. However, Nigeria can only benefit from the high oil prices if it can meet the average OPEC production quota by addressing security and related technical problems.
Another issue confronting the industry is the naira’s depreciation, which affects the cost of raw commodities. It appears though that the company has taken a pragmatic approach to source the necessary dollars to bring in products to meet its customers’ needs, albeit at a premium. Additionally, the cost of clearing goods from ports has increased, significantly impacting the unit cost of production.
Regardless, it is up to the corporation to continue to identify systemic ways to reduce these bottlenecks to maintain its position in the petroleum sector.
