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VENTURES AFRICA – Oando Marketing Plc, an indigenous downstream sector operator, has sealed a $6.87 million finance deal with German development bank KFW, to improve the supply of cooking gas to low income earners.
The deal was agreed last week in Frankfurt by Oando Marketing’s CEO, Abayomi Awobokun, and Thomas Duve, KFW’s Director of the Department “Africa Regional Programmes”, a Business Day report revealed.
According to Mr Awobokun, a select group of Nigerian microfinance banks are expected to receive the fund, which will be lent out to end users deprived of capital needed to purchase gas, as well as smale scale LPG distributors in a bid to improve the availability of affordable gas.
Oando is fast becoming a top domestic gas provider, following a switch in corporate strategy with a new focus on providing customers with cheaper oil and gas products.
Evidence of its refocus is seen the recent agreement with Microfinance banks that enables consumers – with a N200 (just above $1) deposit and 30-day daily contribution of N200 – acquire a 3-in-1 3kg gas cylinder. This has provided cash-ridden citizens with the opportunity to spread out payment for gas consumption, saving them the cost of a one-time payment.
The company’s CEO noted that the company’s commitment towards improving gas availability was aided by the recent advocacy for the switch to cleaner and safer fuel options.