How to Find Crude Oil Buyers and Sellers in Nigeria 2019

With the discovery of crude oil at Oloibiri in 1956 and the oil boom in 1973, selling and buying of crude oil has turned out to be a great venture for businessmen with huge capital to engage in such trade.

Nigeria, the most populous black nation on earth, depends largely on the export of crude oil to foreign powers like the United States for her revenue. Thus, crude oil sellers and buyers stand to make huge gains from the venture.

The volatile nature of the Nigerian market has made figuring out genuine sellers of crude oil in Nigeria very difficult.

A lot of individuals dubiously parade themselves as crude oil sellers, and a buyer could be duped if not careful. Little wonder as to why deals spanning years are signed between genuine sellers and buyers of crude oil.

In a country with a large deposit of mineral resources especially crude oil and citizens still face the threat of fuel scarcity occasionally, there is no doubt as to why certain individuals decide to fake themselves as genuine sellers of crude oil just to gain from the so-called ‘’national cake.’’

Despite calls from scholars and major stakeholders for diversification of Nigeria’s economy to lessen fake and illegal activities in the selling and buying of crude oil, the government still finds it difficult with policies on diversification as private individuals with enough capital to do the trade are unwilling to look elsewhere other than crude oil.

This write up has its major aim and focus as educating businessmen and individuals that want to venture into the crude oil business on how to find buyers and sellers of crude oil.

This article is also in a bid to enlighten people on how the crude oil trade is carried out in Nigeria. Finding sellers and buyers could be difficult but with the right information, any business transaction is feasible.

Below is the process of finding buyers and sellers, categorized into 3 practical steps.

 

Locate a Reputable Company

A lot of individuals fall victim to fraud while trying to venture into the crude oil business due to dealings with fake companies that present unrealistic trading terms meant to favour buyers and lure them into the trade.

There are reputable companies that do the crude oil business and can be contacted with their addresses online.

Some of the genuine companies that do this trade in Nigeria include:

  • Brichgate Investment Nigeria Limited
  • BONJOUE Agencies Limited
  • Onomex Group
  • Chysom Oil and Gas Limited
  • Shorelink Oil and Gas
  • Evergreen Marine Services Limited
  • Exponent Energy Corporation USA
  • JOBAZ Oil Company
  • ACA Holdings and
  • Unimartex Resources and General Agency

The companies mentioned above are not the only genuine crude oil trading companies in Nigeria, there are more. They can be contacted by a willing buyer so business can happen. It is necessary to note that these companies have different trading terms and conditions. You may try them out and work with the best option that suits you.

However, it is necessary to note that the Nigeria National Petroleum Corporation (NNPC) is the most genuine and reliable seller of crude oil in Nigeria. But most businessmen men and women fail to trade with the NNPC due to strict conditions and requirements involved. Most crude oil buyers prefer to trade with companies that have been awarded allocations by the NNPC.

 

Related

 

Get Financial Proof

The selling companies on their own part must be convinced that the buyer is genuine through financial proof mostly through bank account statement or the buying company’s trading history. Due to the large capital involved in the crude oil business, financial proof of capability to carry out the trade is a necessity in locating a reputable seller and equally a genuine buyer.

Ensure you verify financial proof if you want to venture into the crude oil trade.

A seller should have a huge capital likewise the buyer because it is a two-way thing and business is only successful with ready capital. This kind of business does not deal with debts to avoid losses.

For a buyer, poor capital on the side of the seller shows he or she is most likely to be fake because a genuine seller cannot run low financial account since being steady in the business, a seller’s pocket must be fat.

For the seller, a buyer with low capital can be viewed as unserious as the business involves a huge capital especially due to some irregularities or backroom dealings during shipment.

Either way, the business is not for the poor or businessmen with less cash. It is for individuals that can bear the loss and still stand financially stable to do further tradings.

 

Verification of Allocation

As noted earlier, the NNPC is the most reliable seller of crude oil in Nigeria but a willing buyer that cannot meet the strict terms and conditions of the corporation can simply buy from bigger companies with an allocation from them.

However, there are lots of fake sellers and the only way to identify and differentiate a fake seller from the real ones is by asking for their allocation details from NNPC for verification. With this, a fake seller is more likely to pull out from the business.

There are genuine sellers that do not have allocations but they are rare to find. It’s not advisable for a beginner to trade with such. To be on the safer side, it is of necessity to request allocation details for verification. Besides, all sellers with an allocation from NNPC have their details published on news outlets yearly.

 

Product Type

Needless to note, crude oil trade requires expertise. A buyer looking for a genuine seller must be able to know the type of crude he or she is about to buy when presented with a sample or have expert resource persons that can identify the sample as genuine.

Wide varieties of crude oil are produced in Nigeria and the most demanded is Bonny Light Crude Oil (BLCO). The BLCO is, without doubt, the best crude product in the world because of its low refining cost due to low sulphur content. No wonder many crude oil buyers are interested in Nigeria’s crude oil.

With the information above, verifying the sample is another major way of getting a genuine seller of crude oil product in Nigeria. Selling and buying of crude oil is not a business simply done on paper; the practical aspect is very essential.

 

Consider Starting Other Businesses in Nigeria

Lewis Ray

I am passionate about providing answers to the everyday questions Nigerians ask. I believe in one law; the law of price.

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