NAMIBIAN FIRM BUYS 52 SHELL, ENGEN FILLING STATIONS

A Namibian energy company has acquired 52 filling stations previously operated by Shell and Engen in Nigeria, marking a significant expansion of foreign investment in the country’s downstream petroleum sector.

The transaction, valued at an undisclosed sum, was completed on Friday, with the Namibian firm taking over the stations across key cities including Lagos, Abuja, and Port Harcourt. The acquisition is expected to enhance competition and improve service standards in the retail fuel market.

The Managing Director of the acquiring company, Mr. Hendrik Van Wyk, said the investment reflects confidence in Nigeria’s economic potential and the opportunities in the liberalised petroleum sector. “We see great potential in the Nigerian market. This acquisition allows us to bring our expertise in retail operations and customer service to Nigerian consumers,” Van Wyk stated.

The deal is part of a broader divestment strategy by international oil companies seeking to focus more on upstream activities while local and regional players take over downstream assets. Industry analysts believe the entry of the Namibian firm will introduce new operational standards and potentially lower costs for consumers.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has approved the transaction and assured the public that the new owner will maintain high safety and service standards at the stations. The authority also encouraged other investors to explore opportunities in the downstream sector.

Stakeholders in the oil and gas industry have welcomed the development, noting that it demonstrates the attractiveness of Nigeria’s liberalised fuel market. The acquisition is expected to create jobs and stimulate economic activities around the affected stations.

The Namibian company has pledged to invest in modernising the stations, improving customer experience, and ensuring consistent fuel supply. The transaction is the latest in a series of deals that highlight growing interest from African companies in the Nigerian energy market.