Riding the Tidal Wave: How CITA Energies navigated 20 years of jet fuel volatility

Surviving five years in Nigeria’s volatile business terrain is an achievement in itself. Reaching the 20-year milestone in an industry defined by shifting policies, ruthless competition, and continuous turbulence is nothing short of a miracle.

For Cita Energy’s founder and leader, Dr Thomas Olaleye Ogungbangbe, reaching two decades in the aviation fuelling business is not merely a story of personal mastery; it is a testament to resilience, constant reinvention, and divine grace.

“I will not pretend or say that it’s been easy. It has been so difficult managing business in this terrain,” the founder reflected during a reflection on the company’s journey. “That’s why we are giving glory to God today. To even survive five years is a whole lot, not to talk of 20 years, especially when you operate in a complex environment where there are too many moving parts and policies are never stable.”

He said that unlike many corporate endeavours, the aviation fuel business leaves no room for error or relaxation. Operating in the middle of a continuous supply chain that moves fuel from the refinery to an aircraft wing demands round-the-clock vigilance.

“You need to reinvent yourself at all points. It means being eyes-on, hands-on, 24/7, with no gaps anywhere,” he shared.

“In the last 20 years, I haven’t been able to give myself any rest or even a real break. I can barely travel for more than a week before having to run back, especially given the state of the economy.”

According to him, the aviation fuelling sector is famously cutthroat, and at every stage of the distribution chain, operators face aggressive competition, price undercutting, and volatile market entries.

“At each point, somebody wants to take you out; somebody wants to bring you down. They are there like hyenas, which means you cannot sleep. If the law fully protected you, it would be easier to relax. But here, you must protect yourself and constantly reinvent yourself.”

Cita Energy’s establishment marked a milestone for indigenous participation in Nigeria’s downstream aviation sector.

When its founder entered the industry nearly three decades ago, setting up an indigenous jet fuelling firm was considered virtually impossible.

He said, “When I joined this industry close to three decades ago, you dared not talk about forming a company of this nature because it is highly technical,” he recalled. “Everybody looked at it as a no-go area for a black man or an African. For at least 60 years, it was the exclusive preserve of International Oil Companies (IOCs) before I personally broke that hegemony with CITA.”

While local refining was long envisioned as the ultimate solution for Nigeria’s jet fuel supply, the reality on the ground presents a mixture of breakthrough opportunities and structural friction.

Historically, Nigeria never produced jet fuel locally, even through its state-owned refineries. The commissioning of the Dangote Refinery marked a historic shift.

While CITA enjoyed steady profitability in previous years, the past 12 to 18 months have dealt a severe blow to bottom lines across the sector.

“Before now, I could say it was profitable. But over the last year, our figures have looked like a sea of red. We are just coping,” he admitted candidly.

To mitigate losses, CITA has had to make tough operational choices, including referring longstanding customers to competitors when fulfilling an order would guarantee a financial loss.

“You have situations where you even tell your customer to go and patronise somebody else because you don’t want to incur a loss. For international airlines, you sign one-year fixed pricing agreements that cannot easily absorb sudden local cost spikes. There is a limit to how much cost you can pass on.”

Despite the harsh economic climate, Cita Energy’s 20-year survival stands as a story of grit, adaptability, and unwavering faith.

For an indigenous firm that shattered a 60-year multinational monopoly, the current economic storm is just another tidal wave to conquer.

“It hasn’t been easy at all,” he concluded. “We are just riding the tidal waves, struggling to cover costs, avoiding fatal operational injuries, and giving all the glory to God for keeping us standing.”

Wole Shadare