FORTE OIL PLC
One company on the floor of the Nigerian Stock Exchange (NSE) that has distinguished itself not only in the marketing of quality petroleum products in Nigeria but also demonstrated strict compliance in corporate governance principles is Forte Oil Plc.
Since inception, Forte Oil has made it a policy to give the best quality of petroleum products to its customers and to abide by the rules and regulations of the Nigerian Stock Exchange. Indeed, the company has become a reference point whenever quality petroleum products and corporate governance are discussed in Nigeria.
Incorporated in 1964 as British Petroleum (BP) Nigeria limited with the marketing of BP Petroleum products as the main focus. It became a public company in 1979 under the Nigerian Enterprises Promotion Decree of 1977. By the year 2000, the FGN had fully divested its shareholding in AP, thus making the company privately owned. In 2007, the company was acquired by a majority stakeholder, Zenon Petroleum and Gas limited which saw the change of name and corporate identity of the company to Forte Oil Plc in 2010. The new owners upon the change of name sought out to reposition the company in order to recover from an Eighteen billion naira (N18b) loss position in 2011 and a fully eroded stakeholder confidence.
Based on the mission statement of the company “to build a long time successful company and be the investment of choice through positive actions that boost investor confidence at all times”. The company embarked on a three year transformation agenda in 2011 with business activities built on the premise of sound business ethics and solid corporate governance structure. Today it is worthy of note to mention that Forte Oil plc is not only an investment destination with high profitability profile but also maintains the highest share price in the petroleum subsector of the Nigerian Stock Exchange (NSE).
To sustain its leadership position, Forte Oil offers a wide range of top quality lubricants that meet and surpass the varied needs of customers and these products include: Multigrade Oil, Monograde Engine Oil, Automotive Transmission Oils and Specialties, Marine and Industrial Engine Oil, Circulatory System Oils, Industrial Gear oils, Hydraulic Oils, Heat Transfer Oils, turbine Oils, Refrigerator Oil, Soluble Cutting Oils, Demoulding Oils, Transformer Oil, Industrial Greases, Extreme Pressure Greases just to mention but a few. Some of the unique benefits that the users of these products enjoy include: superior engine protection, high temperature stability, excellent low temperature starting, optimum engine performance, consistent quality, low fuel consumption, preservation of engine power and elongation of engine life span. Indeed, Forte Oil is committed to producing high quality lubricants using exceptional resources and processes based on world class standards that guarantee stakeholders satisfaction.
CORPORATE GOVERNANCE STRUCTURE
With the determination to create positive impact in the corporate world, Forte Oil has initiated corporate governance structure and appointed external advisors to assist the company secretariat in achieving its vision of being an investment of choice. Some of the key deliverables are to guide the reconstituted Board Committees on their composition, functions, structure and to further ensure effective Board accountability to its stakeholders. To ensure compliance with the guiding principles of the 2012 Securities and Exchange Commission’s Governance Code for all public companies in Nigeria, The Board established four committees which include the Corporate Governance and Remuneration Committee, the Risk Management Committee, the Board Finance and Strategy Committee and the Statutory Audit Committee. Each committee meets on a quarterly basis to discuss matters pertaining to its terms of reference in addition to regular reports provided through the company secretariat on any significant issues to be considered by the committees.
To demonstrate its commitment to corporate governance, the membership of the Board of Forte Oil is a dynamic mix of executive and non-executive directors based on integrity, professionalism, career success, recognition and the ability to add value to the organization. The Board ensures a mix with representative from different industry sectors to the extent that the interplay of each candidate’s expertise, skill, knowledge and experience builds a board that is effective and responsive to the needs of the company.
According to Mr. Akin Olagbende, the company secretary “disclosures and transparency is at the heart of our corporate governance structure, therefore compliance with the disclosure requirements of the Exchange and SEC is paramount to our overall corporate governance framework. This includes disclosure on related party transactions and director dealings. Emphatically, the level of disclosures are not limited to just the regulators as we have yearly financial presentations done at the Stock Exchange where we present our result to the investing public. This along with our investor relation department provides an avenue for our stakeholders to meet and interact with top management of the company”.
The management team of the company is committed to ensuring that stakeholders reap benefits from their investment while customer satisfaction is guaranteed in every product bought. The management team of Forte Oil plc is led by a seasoned professional, Group Chief Executive Officer, Mr. Akin Akinfemiwa while the Board is chaired by Mr. Femi Otedola, a foremost businessman in Nigeria.