A Glimpse into the Downstream Oil Sector: Opportunities and Potentials #LOH252

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If there is one industry I'd love to venture into in terms of business, it's the oil and gas industry, preferably the downstream sector, because on a critical analysis, that's the underworld where the money lies. The beauty about this business in Nigeria is that you can own a fueling station and lease it out for at least ten to thirty million naira; that's about seven to twenty-one thousand dollars per annum depending on the capacity and location of the fueling station.

And while the filling station is being leased, a monthly allocation from FG to the filling station owner is guaranteed, and this is usually a substantial amount of money, as at 10 years ago this allocation was five hundred thousand Naira, and this amount is being paid whether the filling station is leased, operated, or dormant.

Another lucrative side of this business is that one could also lease the filling station and not the business name, as they could use that business name to still buy a tanker load of petrol or diesel from the refinery and sell that tanker to a retailer who runs a filling station. This is where the easy and quick money lies, really, because you are not bothered by the running cost of selling it via a station. Another arrangement on the lease payment could be a percentage from the proceeds of the product sales rather than a prepaid lump sum payment.

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I was privileged to the above information when I was accompanying my friends to the refinery to reclaim their late father's investment that was leased a long time ago by their uncle. When we got to the refinery, they were giving all the options for when they eventually take charge of the various filling stations owned by their father.

Before that time, I had always thought the oil and gas industry was a dying industry, seeing that our refineries are not working and we have to export crude oil and import its finished products. But that encounter exposed me to a whole lot I never thought was possible.

From that day that we left the office, it has been on my mind to venture into the oil and gas industry. My resolve was strengthened in recent times seeing how wealthy my friends became, owning properties and shuttling the globe, flying business or first class. Their lifestyle change made me see reasons why Dangote, the richest man in Africa, would diversify from agriculture to the oil and gas sector.

While agriculture is good, no doubt? It cannot be compared to the almost easy money gotten from the energy sector. This sector is basically investing all your money and letting it yield to fend for both your necessities and your luxuries.