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Downstream operator tasks government on infrastructure development

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Operators in the downstream sector of the oil and gas industry have called on managers of the Nigerian economy to urgently fix the decaying infrastructure, noting that the current state of infrastructure is impacting greatly on the operations of the industry.

The Chief Operating Officer of A. A. Rano Nigeria Limited, Mumuni Dagazua, said just like other sectors of the economy, the downstream sector is still being plagued by inadequate infrastructure, saying that if addressed, it would enable operators save cost while also bringing down the price of consumer goods greatly.

Dagazua, speaking on the sidelines of the ongoing 2019 OTL yearly conference in Lagos, said: “We face the same challenges every other operator faces, especially when you talk about power supply and this impacts greatly on the ability to supply efficient services. Profitability may not be how much we are putting in our pockets, but the strength you have to give more to the customers.
  
“It is the same problem everywhere, where you have to generate your own source of power, but we believe once this situation can be dealt with by the government, we will actually start seeing cost savings coming in and the price of consumer items starting to drop,” he said.
According to him, the downstream sector is recording low profit margins, but said the company has been able to manage its cost by deploying effective strategies to remain competitive.
 
“We have been able to secure products both from importation of collection from NNPC right through to the end user. We manage our cost and own all of our assets. Every station you see is owned by A A Rano. We feel that kind of development plan controls your cost. We are struggling like every other operator, but we just want to be continuously involved in the value chain.”

On expectations from the federal government is to achieve a virile downstream sector, he stated: “We understand that government is always limited to what it can do, and as long as the government can do the best they can do, we will continue to support them going forward. At the end of the day it is not about us and the government, but for all operators in the industry.”

He said Rano’s presence in the downstream segment is highly competitive and robust with over 600 trucks and 115 retail outlets spread across the nation.He added that plans are ongoing to continually expand its retail network, ensuring that the average consumer enjoys and benefits from its brand promise of availability, top quality and best pricing.


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