April 9, 2023

I Started GG Oil From The Humblest Of Beginnings -CEO, Akeem Adelaja Tells His Grass To Grace Story, Celebrates Birthday

It is a special day in the life of young, thriving Lagos businessman and Philanthropist, Akeem Aderemilekun Adelaja as he celebrates his 43rd birthday. As the day falls within the holy Islamic month of Ramadan, the successful young oil merchant, who owns and runs one of the flying companies in the business of Oil and Gas in Nigeria, GG Oil and Gas Limited is hosting a special Ramadan Tafsir to mark the the occasion. Well-wishers from far and near have also been celebrating the prominent son of Mushin on his special day. Today, the GG Oil boss is one the prominent young businessmen in Lagos. Recently, the unassuming, sociable CEO of GG Oil granted CityScoop a rare exclusive interview where he spoke deeply about his struggling days when he sold recharge cards on bicycle and how he got his big breakthrough in the business of oil - from the most humble of beginnings. It certainly will make a good read.
How has the journey of growing the GG Oil brand into one of the notable players in Nigeria’s oil industry been?
GG Oil was incoperated in 2013, but there has been a company called GG Oil and Gas Ventures that has been in existence since 2007, which means the brand has been in business for over 15 years, growing at different levels. When I started in 2007, I started as a diesel supplier. But year in, year out, with ups and downs - there good and the bad, we elevated to GG Oil and Gas Limited. That was when we started the plan to open our own filling station, in 2014. Growing the business has not been an easy affair but we thank God for where we are today.

How many fuel stations do you have today?
Presently, we have 7 in different locations. We have in Mushin Isolo road, which is our head office, Idi Araba , Shomolu Pedro Road, Yaya Abatan road Ogba, Demurin Stretch Ketu, Itokin road Ikorodu and Bolade in Oshodi respectively.

Can you share with us what you were doing before venturing into the oil and gas business?
Thats a very huge question. Well, I was raised by a single mum and it was a very tough experience growing up. After my ND, she didn't have the financial ability to send me further. So, I got a job with a company called More Time Gas and More Time Technologies. They own More filling stations with their office located at Cele bus stop along the Oshodi Apapa expressway. I actually went there for my industrial attachment in 2001 and after that, I couldn't go back to school to continue my HND. I spoke with the Head of Human Resources department and he told me I couldn’t continue to work there. Back then, my salary was N4000 and it was later upgraded to N10000. In 2003, I enrolled for my HND at the Lagos State Polytechnic (weekend program) and I graduated in 2005. I was still working at the company at the time until a friend advised me that if I don't pull out of that job I won’t get something better . So I resigned. Then thongs got tougher. So I started hawking recharge cards with bicycle. I was nick named "Akeem oni Keke" because of that. It wasn't really bulk sales that’ I was doing but we have a way of having a fair share of the profit. I was lucky to be getting credit facilities from suppliers, so I was allowed to pay after selling. In 2006, my wife (then fiancĂ©e) got pregnant. We both attended Lagos Polytechnic where she studied Food Technology. From the recharge cards business, I was able to get a small apartment to at least start up. Then of course, being a man, I was scared and kept asking myself how I will be able to cope, but I have always known that I have a very good future ahead. Although, not every member of her family was in support of our relationship initially because of my financial status - especially her elder brother, a Chattered Accountant. But we got married. As at then, I already had two shops located inside the popular Ladipo spare parts market. In fact, on the day we got married, one of the shops was burgled. By then I had graduated from hawking with a bicycle to a motorcycle and already had staffs working for me. My capital had increase to N3m and my supply chain had extended to Lagos Island.
When the shop was attacked by burglars, I was owing one of the companies that supply me about N1m and I also owed another company close to N800,000. These two companies won't let me rest with calls but of course I knew I would repay back so I was begging them back and forth to give me time. So that was part of what made me later quit the recharge card business. Of course, no one wants to give me credit facility again. But I did make myself available for the companies so even if they want to arrest me, I was available. At some point, I was using the bike to carry passengers but it wasn't leading anywhere. I kept asking myself what can I do. I have a friend back then, his name is Korede Mohammed. He presently stays in the US. May God bless him. Three weeks after the sad incident, we got talking. He was into printing business then, so he said Akeem why not start selling Diesel afterall you have had an idea of what the business is about. I said yes , but I don't have enough money to kick off. He then told me that I can start the business because he has someone who supplies the printers around and since I already have a bike. So, he advised that we should make enquiries. There is a woman called Iya Ramo around Papa Ajao who sells in drum. She gave me a breakdown of what the business is all about, as well asking the profit margin. So I pulled out N20000 one way or the other and started the diesel business. I sold a drum in five days.
So, how were you able to get customers for the business?
My friend helped with the marketing. He introduced me to several printers but the sales was gradual. One thing led to another and I started selling 10 drums in a day. At a point, I had to get a bus to expand because I was now doing bulk sales and getting supplies wt cheaper price. I needed to up my game. I had started going to Apapa to buy in bulk. I got a bus from an Ibo guy who allowed me paid twice with interest which was ok by me. It was immediately I got the bus that the people I was owing from the recharge card business came asking for their money. They didn't come to me directly though but someone told me about it and advised me to report myself at the police station. I did and signed and undertaking to be giving them N50,000 monthly. It was easy for me because as at then, I already have a customer who is into wine production. I was supplying MTN, and some banks too. I had already seen prospects in the diesel business at that time. I wrote a proposal to these companies. I was supplying GT Bank Mushin, from there, I was refered to Apapa branch, from Apapa to Yaba. it was a rapid growth for me and was really a fantastic experience.
Would you say the diesel business was the one that gave you the big breakthrough in life?
Definitely! It really helped me because as at the end 2008, I was able to have N3.5m capital and I wasn't owing anyone anymore. The next step for me afterwards was to get a mini-truck to make the supply easier. I went to Benin Republic and got one for N3.3m. So, I was left with N200,000, which was too small for me to do business . So at the point I don't have any other option that to take a loan. So I got a loan of N1 million, but not from the bank.
That was what I did for a whole year. Then in early 2010, I met someone called Rafiu Baruwa Durosimi-Etta, a first cousin to Kehinde Durosimi-Etta - the MD of Skye bank then. That was when actually I got my big breakthrough. Mr Rafiu was into supply too, but he doesn't have the capacity to manage the whole Skye Bank. He was looking for someone to help him in doing the supply. They pay after 3 days interval. Then I used drive the truck myself, but I had a worker.
Mr Rafiu was really sincere when we started, sometimes on a daily basis we getsometimes on a daily basis we get like three to four supplies to Skye Bank branches in Lagos. In a day sometimes, we make up to N200,000. It was really a big breakthrough. At some point that year, I was the only one supplying all Skye Bank branches in Lagos State, because he found me so reliable. By 2011, the business had skyrocketed, to the extent that In 2012, I couldn't imagine the growth such that I bought few properties for myself and got a bigger truck. Initially, it was Mr Rafiu Durosimi-Etti I knew, but later got to meet the MD of the bank himself in 2013. I went to supply his house at Banana Island, and had a chanced discussion with him. That discussion led to what made me thought about owning a filling station. So that was how it all started.

Where did you start from?
I started from this branch, Isolo Road. When we started the filling station, what we were making daily was not encouraging so I spoke with a couple of my friends who stay in the US about relocating. I got there visa and a month after I got there I asked myself is this thing really for me? I packed my stuffs and came back to Nigeria. There was an election coming up then in 2014 and there was serious fuel scarcity in the country. In my entire life, till today, the money I made in 2014/2015 I have never made such! It was like another breakthrough for me. The scarcity persisted for close to nine months till after the transition. The scarcity was so serious that GG was the only station selling fuel in the whole of Mushin to as far as Onipanu. In 2015, I got another property to build a filling station at Idi Araba. That was how I started expanding and more. Within 8 years I have 8 filling stations. I built two and acquired some existing ones.

What would you say are the biggest challenges in the oil and gas business as it relates to expansion?
There are numerous challenges. In fact, a lot. It’s just like you have it in other sectors. But I believe it is the challenges that have helped more in the business.