Lubcon also produced the first indigenous finished lubes product, Performa, winning the Nigerian industrial standard award in 2000 from the Standards Organization of Nigeria. The company was the first to produce an indigenous synthetic lube, Rugged Elite. Finally, it was the first Nigerian blender to own a lubricant blending plant in Ghana.

The Lubcon plant in Ilorin has a capacity of 40 million liters per year, in a single shift, but its utilization only stands at 65 percent. The site comprises 14 tanks of 1.5 million liters each that supply base oils to the plant and are supported by a coolant system.

Lubcons finished products include gear oils, hydraulic oils, automatic transmission fluids and motor oils, which are stored in segregated tanks to prevent intermixing of different products, according to Williams. The plant has two semi-automated filling lines, which Williams said was a conscious decision to generate employment for the local population. The plant normally employs about 750 people, 1,500 during peak production periods.

The plant also houses a modern laboratory with state-of-the-art analysis equipment, including an atomic absorption spectrometer, Williams noted. The lab also has the capacity to measure total base number to check the properties of finished engine oils.

Williams explained that the plant generates minimal effluent because it does not use water, but, he added, it has a separation pit to collect waste. The National Oil Spill Detection and Response Agency visits quarterly to ensure compliance with environment standards. Lubcons lubricant formulations are based on Western European base oils, but the company also sources base oils from Latvia and Serbia in Eastern Europe.

Lubcon has adopted what it calls a supply chain approach to its operation. A sister company, Logdisc, with a fleet of 43 trucks is responsible for transporting base oils from the seaport in Lagos to Ilorin and also for transporting finished lubes to distributors. Replastico, a plastic company, is responsible for manufacturing kegs for finished lubes. Corrupac, a packaging company, produces cartons for packaging finished lubes.

Finally, Lubox handles construction and services for Lubcons plants. Lubox is responsible for constructing all our plants including the current construction in Ethiopia and Lagos, Williams said. They also constructed the Ghana plant, with the exception of the grease plant.

Products & Business

Automotive lubes comprise more than 70 percent of Lubcons business, Williams said. However, he added that the company has been making inroads in the marine and industrial lubricants sector. Although the marine lubes market is tough, Williams noted that Lubcon has made appreciable progress in the market.

Lubcon has also manufactured turbine oils for the Power Holding Co. of Nigeria and has supplied hydraulic fluids to Dangote Industries. Lubcon Aero, a subsidiary company, supplies aviation fuels with a depot at Ilorin International Airport.

Williams said that Lubcon was the dominant lubricant product in northern Nigeria until the emergence of a few new players: We were in control of the northern market, but, of course, everybody saw that and moved in. We are also making a lot of effort in the south because we have [focused on consolidating] the southwest areas.

In addition, he explained that Lubcon has moved into the eastern market to compete with blenders in that area. Williams said that what differentiates Lubcon from the competition is innovation. We are always [looking] at the industry to [detect] early adoption of new practices in the country, he said. What may be a novelty [in Nigeria] may be [common] outside of Nigeria. What is key for us is to take the initiative to say we are [open to new supplying new things].

History & Market Strategy

Lubcon started as a distributor of industrial products such as transformer oil and as the Nigerian representative for Repsol of Spain. Our aim was to … produce Repsol Elite, and we wanted them as our technical associate. They did support us a lot, and the original formulation we introduced was based on Repsol advice, Williams said.

However, political problems in Nigeria under the regime of the late General Sani Abacha in 1994 disrupted the partnership. Nonetheless, it became the impetus for Lubcon to launch its own range of products. We introduced Performa, which was the first lubricant product to win the Nigerian industrial standard award from the Standards Organization of Nigeria in 2000, Williams said.

Lubcons prominence in the Nigerian lubes market, which was previously dominated by major oil marketers, can be attributed to two strategic moves. First, in 1995, it successfully brokered a deal with the Nigerian Automobile Technicians Association to be its official blender. Part of the partnership involved setting up sales outlets with the associations members, who offered Lubcon products exclusively.

We understood that [the technicians] are the decision makers in terms of [choosing lubricants], and [winning] their trust was very strategic, William said. Significantly, the partnership altered how finished lubes were marketed in Nigeria. Previously, lubricants were sold primarily by major oil companies at fuel stations.

Second, Lubcon took advantage of a gap in the Nigerian market. Finished lubes had been offered only in 4-liter kegs, but Lubcon introduced its products in 5-liter kegs. Williams said this decision was based on the increasing sales of vehicles that required larger lube volumes. We offered [the larger kegs] first with Repsol products and later with our own product, Performa, William said. They did very well and [earned] good recommendations. He added that once auto technicians tried Lubcons products and found them satisfactory, the oils became the preferred product because they were also less expensive than what the majors were offering at the time.

Lubcon has since inked other partnerships, thus entrenching its brand in the market. For instance, it is the sole blender for oils used in vehicles owned by the Nigeria Union of Petroleum and Natural Gas Workers and the blender for vehicles owned by the National Union of Road Transport Workers in the southwest.

Williams explained that Lubcon is not involved in direct sales of its engine oils, but uses distributors who sell to retail customers. However, Lubcon is changing this strategy with its synthetic lubes. Our sales team is going into garages to talk with the technicians directly, he said.

This is the same strategy the company uses in marketing its industrial lubes. Our engineers go to companies [to establish a relationship] and assist them in lubricant purchases and use. Williams added that garage owners are gradually embracing its synthetic products. It is not all about selling huge volumes, he said, but to make the point that [synthetics] can be blended locally.

African Expansion

Lubcons Chairman Jani Ibrahim said his vision is to grow throughout Africa. To achieve this ambition, he plans to approach the Nigerian stock market in the near future to raise funds for expansion. The [worlds] attention is now on Africa, and we Africans should not … allow ourselves to be dominated [by outside companies], Ibrahim said. He emphasized that Lubcon is ready to meet the challenge of supplying to the continent because the opportunities are in Africa.

The 25 million liter capacity lubricant blending and grease manufacturing plant in Ghana, which came on stream in 2004, was just the start of the expansion efforts. Lubcon is also constructing a 30 million liter capacity blending plant in Ethiopia that will come on stream in the first or second quarter of 2014, said Ibrahim.

Lubcon is the first independent to own a blending plant in Ghana, and it will also be the first independent to own a plant in Ethiopia. Williams explained that the Ghana plant became practical when the company started receiving orders from Benin Republic, Togo, Burkina Faso and Liberia but faced customs and import challenges to delivering consignments to clients. Figuring the cost for each consignment became a very big problem, and we [started blending] in Ghana, Williams said, because the tariffs between Ghana and these countries are lower.