Oando Plc has announced the suspension of petrol importation into Nigeria following the Dangote Refinery’s growing dominance in the domestic fuel market, which has led to a 20 per cent drop in the company’s trading revenue.
In its half-year and nine-month 2025 financial reports, Oando stated that the rise in local refining capacity from the Dangote plant has reduced Premium Motor Spirit (PMS) imports, reshaping the nation’s downstream sector.
“Our trading segment faced significant pressure due to the decline in PMS imports, driven by the increased local refining output from the Dangote Refinery — a development that enhances Nigeria’s energy independence,” the company said.
To adapt, Oando said it diversified crude offtake sources, optimised trade flows, and expanded into new commodities such as liquefied natural gas and metals to offset losses from reduced fuel imports.
The company’s revenue fell by 20 per cent year-on-year to N2.5 trillion in the first nine months of 2025, compared to N3.2 trillion in the same period of 2024. Gross profit also dropped by 42 per cent to N113 billion, reflecting the impact of lower fuel import volumes.
Despite the decline in revenue, Oando reported a 164 per cent surge in profit after tax, rising to N210 billion from N76 billion last year, driven by higher production volumes and recoveries.
“Refined product volumes remained under pressure due to the success of the Dangote Refinery in meeting domestic demand. As a result, we have shifted focus to expanding crude exports and structured pre-export transactions,” Oando noted.
During the review period, the company traded 21 crude oil cargoes amounting to 19.8 million barrels, up from 15 cargoes (16.7 million barrels) in the previous year, signalling stronger crude trading performance.
Oando explained that it made a deliberate strategic decision to pause petrol importation, acknowledging the structural shift in Nigeria’s energy market following the full-scale operations of the Dangote plant.
“With the refinery now meeting national fuel needs, our attention is on high-margin crude and gas trading, while monitoring the refined-products market for possible re-entry as conditions stabilise,” the firm stated.
Looking ahead, Oando said it would deepen crude trade flows, strengthen financing structures, and expand into gas and metals trading to build a more resilient, future-ready energy portfolio.
The Dangote Refinery, which began operations in 2024, has rapidly become a key player in Nigeria’s fuel supply chain. With a production capacity of 650,000 barrels per day, it now provides most of the nation’s petrol and diesel, significantly reducing dependence on imports.
Last week, the Federal Government imposed a 15 per cent import duty on petrol and diesel to protect local refiners and discourage cheap fuel imports, a move analysts say will further consolidate Dangote’s position in the market.
