Eterna Oil Plc has announced an investment of over ₦3 billion ($9 million) to expand its lubricant oil plant operations, reinforcing Nigeria’s local content drive in the oil and gas sector.
Speaking at a media briefing in Lagos, Eterna Oil’s Managing Director, Mahmud Tukur, highlighted the company’s commitment to boosting local production of Castrol lubricants, which were previously imported. The investment is aimed at increasing the capacity of Eterna’s state-of-the-art 15,000 metric tons (MT) lubricant manufacturing plant in Sagamu, Ogun State, fully owned through its subsidiary, Eterna Industries Limited. The facility is one of only three Castrol-accredited blending plants in Africa.
Strengthening Nigeria’s Lubricant Industry
Tukur explained that Eterna Oil initially imported and distributed Castrol lubricants before setting up a robust marketing structure that significantly increased sales. This led to local production of Castrol oil in Nigeria through a third-party facility as an interim measure.
“Our dream became a reality when we secured a $940,000 loan from the International Finance Corporation (IFC) in 1995 to construct what has now become one of Africa’s most advanced lubricant manufacturing plants,” Tukur said.
The plant, which adheres to global standards, was designed with technical support from Castrol Global. Equipped with a modern laboratory, it facilitates blending activities and used oil analysis services for customers. If the facility runs three full shifts, it has the capacity to blend up to 45,000 MT of lubricants annually.
Tukur noted that the laboratory frequently participates in Inter Laboratory Correlation Programmes (ILCP), benchmarking test results with other laboratories worldwide. The facility is also working towards obtaining ISO 17025 certification to further enhance its credibility.
Launch of Castrol GTX Essential
Eterna Oil recently launched Castrol GTX Essential, a new lubricant variant specifically designed for Nigeria’s climatic conditions. Notably, this product was first produced globally at Eterna’s Sagamu plant in August 2017, showcasing the confidence Castrol Global has in the company’s manufacturing capabilities.
“Between 2009 and 2015, post the acquisition of Castrol by BP, Eterna was mainly active in the Marine and Energy sectors, supplying premium lubricants to tanker vessels, port operators, and drilling rigs,” Tukur explained.
“In 2015, we commenced discussions with Castrol to extend our licensing rights to cover the Automotive and Industrial sectors, which led to a sole distributorship agreement in February 2017 for the Nigerian market,” he added.
Future Expansion Plans
Eterna Oil has outlined plans to expand its distribution network nationwide by appointing new distributors, partnering with independent retailers, and constructing mega stations in key cities like Abuja and Calabar.
Despite past challenges, Tukur reassured that Eterna Oil remains financially strong, with a solid balance sheet that positions the company to deliver exceptional value to its shareholders, staff, and partners.
“Eterna Oil Plc is proud to be the first fully indigenous oil marketing company listed on the Nigerian Stock Exchange (NSE),” he concluded.
This expansion marks a major step in Nigeria’s push for local production in the oil and gas industry, reducing reliance on imports and creating more job opportunities within the sector.
