By Tunde Oso

AKINFENWA Akinruntan, at 20, started off as a fuel attendant and rising to the position of Group Managing Director of Obat Oil. In this interview, Akinruntan says deregulation of the downstream sector of the oil and gas sector will promote competition in the industry and also delved into the fuel scarcity issue confronting the country. Excerpts:

The downstream sector is currently undergoing turbulent time with marketers clamouring for deregulation. Comment on this?

I firmly believe it should be implemented because, from a technical point of view, it would stimulate economic activities, eliminating restrictions for new businesses to enter the market and increase competition. Deregulation is a way of breaking NNPCL’s monopoly in order to pave the way for healthy competition.

This implies the introduction of the free market system, where the forces of demand and supply are allowed to determine the market price of products. This formula is in contrast to the regulated regime, where the government acting on existing law controls and determines retail and wholesale prices of petroleum products. A regulated regime is characterised by low level of competition and investment, leading to distortions in product supply and distribution. It is also associated with scarcity, resulting in long queues, hoarding, smuggling and other bottlenecks such as monopolistic practices, the existence of subsidy and poor maintenance of infrastructure.

So, the subsidy regime should go?

Yes, I am in support of the removal of the subsidy. The new price with its cost-reflective nature is expected to help to improve product availability and attract investments to the sector as marketers now have increased margins. Expectedly, due to the sensitive and controversial nature of petrol pricing in the nation’s polity, the announcement was received mixed reactions. Government and those sympathetic to its decisions and policies as well as operators in the Nigerian downstream petroleum sector have backed the hike in petrol prices.

Can you give reasons for the current fuel scarcity?

I believe the current administration is working actively to curb the scarcity in order to meet the high demand by supporting the refineries in the country, including several other policy implementations. However, there are always up and down times. I believe this too shall pass. 

IPMAN members claim they have been going through hard times getting products at N148/litre from depots, which makes them sell above N200/litre and has now reduced patronage. How is Obat Oil doing in this situation?

As I previously stated, there would be up and down times. Downtimes, which we are experiencing now were well anticipated and adequate preparation readied us for it. We have diversified into other fields in order to establish other streams of income. These entrepreneurial decisions have served as a buffer in these hard times.

IPMAN recently issued a seven-day ultimatum to the FG after which they threatened to react. Has the price disparity been addressed or should we expect further hike in fuel prices?

The Federal Government does what is in the best interest of the people. On the question of further review of price, I can’t really say yet, but, it is unlikely.

IPMAN has been accused of being disorganised, which makes the Federal Government prefer to deal with MOMAN and DAPPMAN, comment on this IPMAN is a well-organised group of individuals, who have the best interests of members at heart. They have to take a stand even when it is most inconvenient. However, we must agree to disagree and that is the current relationship I see smooth relationship between the Federal Government and the group.

You were introduced into the business before you were 20, starting off as a fuel attendant. Speak on your evolution?

Yes, very true. It was an experience that was worth it. It gave me a vital leadership lesson that could not be taught through any other means. I learnt the lesson of being a servant first to become a greater leader tomorrow. It gave me the ability to understand the intricacies of the business from the bottom to top. Given the opportunity, I would take the chance all over again if I have to. I started in the position of a pump attendant. Anytime I returned from school, he would instruct me to go to the filling station to learn the ropes. Later on, I became a supervisor, then a station manager, zonal manager, general manager and the rest, as they say, is history. I also worked at our depot in Lagos State. I worked with trained and intelligent professionals that taught me many things about the oil business. I travelled to London to learn some things about business and I assumed my current position when my father was crowned Olugbo of Ugbo Kingdom.

Were you treated like others or given preferential treatment?

No preferential treatment. It was a fast-paced job and I performed my tasks to the best of my ability. If you could not deliver on your obligation, there was always a third party ready to take your place. Hence, it was more or less the survival of the fittest. My father is a disciplinarian. He told me that I must learn the nitty-gritty of the business. Initially, the idea did not go down well with me because I could not relate to why my father would put me through the stress of selling fuel. I asked myself why he was trying to ridicule me. Some of my friends were travelling in and out of the country, while I was compelled to be selling fuel.  

I was not happy at the time. But in the long run, I discovered that what he was trying to do was to build a successor for his business. After a while, I started getting tips from my customers for good service, which encouraged me to go to work every day.

Share your experiences in running Obat Oil

Challenges are inevitable in business but regardless of how hard they come, we are always determined as a team to weather the storm together. The past year (2022) was really challenging considering the fluctuations in fuel price, scarcity and other challenges faced, including poor road networks to deliver products across the country, the rising level of insecurity in Nigeria, inadequate infrastructure, high cost of products, natural disasters and others.

On a personal level, how have you been able to handle the running of the company since you took over?

I would like to give utmost appreciation to my great father, Kabiyesi Frederick Eniti Akinruntan, the Olugbo of Ugbo kingdom, for establishing this great company. Being the great leader that he is, there has never been controversies in the running of the company. We do think as a collective unit working to achieve companies’ visions and mission statements.  My siblings and I were in the business but in the long run, everyone’s skills manifested. My elder brother decided to go into politics and my sisters are doing well in the oil business. My other siblings are also doing well in academics. I cannot say that I am my father’s successor. He is still the chairman of the company, while I am just the Group Managing Director. Any child can be his successor because we all have the same training.

How has your training as a lawyer helped you in running an oil business?

There is a famous saying that Knowledge is power. I can say with utmost confidence that the application of knowledge from my law background gave me a solid foundation for the tasks in the Obat Group and, most especially our compliance team. Also, being mentored by one of the greatest minds in the field such as my great mentor, Chief Afe Babalola, is hard to go wrong.”