Nigerian Blender to Boost Capacity


Nigerian lubricant producer Conoil will invest 5 billion naira (U.S. $2.5 million) on an additional blending plant in Lagos, with capacity of 60,000 metric tons per year, intended for the Nigerian market.

The Lagos-headquarted company already owns a 40,000 t/y plant in Apapa, Lagos, but aims to significantly increase its engine oil production capacity.

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This will put the company in good stead to take huge advantage of the projected growth in the domestic lubricant market and invariably skyrocket its lubricant contribution to its overall turnover, the company said in a recent press release last week.

The plant will have four filling lines, Biodun Azeez, Conoils head of corporate communication, told Lube Report.

The Lubricant Producers Association of Nigeria lauded Conoils move to increase its blending capacity, as the country will be able to absorb the extra production, executive secretary Emeka Obidike said.

Nigerias demand is estimated to be around 515,000 t/y, or about 1 percent of the worlds total demand, and grossed around 150 million naira in 2013, according to Conoil.

Conoils new blending plant will also serve as a countervailing force to the proliferation of imported finished lubes into the country, which does no good to local blenders and the economy, Obidike continued. We are fully in support of this move by Conoil because it holds good for local blenders and the economy rather than just importing finished lubes into the country.

Olaniyi Okedairo, of Nigerian oil and gas consultancy Velvet Hill Ltd., concurred, noting that Conoils new capacity is a welcome development for the local lubricant sector because it will challenge the existing standard of quality of lubricants on the market.

Under brand names Quatro, Okada Golden Super and Golden Super, Conoil produces a variety of automotive engine and transmission oils, grease products and industrial lubricants for a wide range of applications.