REVIVING NIGERIA MANUFACTURING FIRM 5
DIVEST OF FORTE OIL ANOTHER GIANT STRIDE TOWARDS INDUSTIAL DEVELOPMENT IN NIGERIA
According to the group managing director of NNPC Dr Makanti ,Nigeria is only country that still import refined petroleum products among all the OPEC Countries .Within nine months in 2017, Nigeria spent whooping N2.6 trillion on refined petroleum importations. The trends still continue to date. Ninety percent (90%)of the 50million litres of premium motor spirits being consumed daily nationwide (petrol)is being imported. our local refineries work below optimum capacity and enjoy very low patronage from big oil marketers.
However ,the clarion call for local refine of Petroleum products yielded positive boost when Dangote group took the bull by the horn by floating 600,000bpd( barrel per day ) fertilizer and petrochemical refineries in the coastal area of Lagos ..the capacity of which is bigger than the combined Nation's refineries (Kaduna,Warri and port Harcourt (445,000bpd). The Dangote refineries is slated to commence operations in year 2019
However ,among major player in the oil import business, Forte oil Chairman MR Femi Otedola (an ally of Aliko Dangote) recently divest his 75% shares in forte oil to invest in refining and petro chemicals.
THE BILLIONAIRE MIND SET
Many will wonder why will investors sell business that has made a fortunes( billions )For the shareholders of naira over the Years .the following are major factor for such business decisions
Experience
Femi otedola through his zenon acquire African petrol oil over a decades ago which expanded the operation under Brand name Fote oil, this acquisition revolutionised the oil magnate operation and put the company on global limelight, making billions monthly.
Challenges
More so its normal to always view oil business as money spinning business .indeed it is, but ,as lucrative as it is, so also the risky the venture is.
Adequate structure is really needed to be put in place in order to mitigate against great loss in the business .
Otedolas experience.
in 2008 the company loss billions of naira in the business owing to the volatility of the importation of oil, inadequate business structures ,inadequate advice from supporting financial institutions ,great exposure to dollar as well as devaluation of the naira currency
Maintaining Great assets _Goodwill
It took a sacrifice of more than half of his total fortune to savage the firm during earlier stated turbulent time. “When there is will, there is way”. within space of five years ,the company having maintain his great assent “Goodwill” became another brand of global repute .A move many refers to as a great “business bounce back”
Lessons to entrepreneur
Most entrepreneur during time of bounty invest in frivolous items .some spent fortunes on luxury cars, luxury private home, jets etc ,but great entrepreneur invest in real estate and shares investment In choice location and company respectively. This always serve as savage in time of crises
Perseverance in face of uncertainty
great entreprenuer believes that when there is will there is way .More so, in every situation the best decision is to weather the storm .This is because God always have something to teach you as an entrepreneur . you cannot compete with destiny .
Values
The honesty is really a great sustaining value that makes Fote to exist till present date. During the crises of 2008 the chairman face decision to loose over half of the fortune to savage the firm image from indebtedness and gloomy image, to sustain the goodwill of the company, Femi otedola shun any other options and confidently and gloriously took the sacrifice for future purpose. ..His courage and honesty earned him goodwill and respect among major oil mongul and help him to revive the company.
In same vain, this among other reasons made him one of the closed ally of African richest man aliko Dangote.
Securing the future
As we live in ever dynamic business terrain,
It is either you float with the tides or become extinct. Dangote refineries is schedule to commence operations in 2019,there is more political zeal to resuscitate the nations refineries by the present government under the management of NNPC ,The political climate, couple with other coming changes in oil sector make divest of the shares of forte oil very imperative owing to the fact that in short period of time the importation of refine products Will not be as goldmine as it were. Therefore the decisions of the company to divest the share of Fote for the purpose of investing in refining and petrochemicals is a giant stride and a decision of great entrepreneur who understand the trend in the future of oil business. In addition to this, the industrialization of Nigeria economy ,for self sufficient in local petroleum refining, has adds another boost.