Oando Plc has announced the suspension of its petrol importation activities as the Dangote Refinery continues to reshape Nigeria’s downstream oil market, cutting the company’s trading revenue by about 20 percent.
In its half-year and nine-month 2025 financial reports, Oando explained that the refinery’s growing local output had significantly reduced the nation’s reliance on imported fuel. The company noted that while this shift has placed pressure on its revenue, it represents a positive development for Nigeria’s energy security and self-sufficiency.
The report revealed that Oando’s trading division had to adapt quickly to the changing market. The company diversified its crude offtake sources, optimized trade flows, and expanded into new areas such as liquefied natural gas and metals to cushion the impact of reduced petrol imports. These initiatives, it said, are beginning to yield results and are expected to drive stronger performance in the months ahead.
Between January and September 2025, Oando’s revenue declined by 20 percent to N2.5 trillion from N3.2 trillion recorded in the same period of 2024. The company attributed this drop largely to reduced gasoline imports, though stronger upstream performance helped offset part of the shortfall. Gross profit also fell by 42 percent to N113 billion compared to N194 billion in 2024.
Despite the fall in revenue, Oando recorded a sharp rise in profit after tax, which jumped by 164 percent to N210 billion from N76 billion in the previous year. The company said the impressive growth was driven by stronger crude production volumes and legacy recoveries.
Across its trading operations, Oando acknowledged that refined product volumes have remained under pressure due to the Dangote Refinery’s success in meeting local demand. As a result, the firm has shifted its focus to expanding global crude exports and leveraging structured pre-export transactions, where it continues to perform strongly.
During the nine-month review period, the company traded 21 crude oil cargoes totaling 19.8 million barrels, up from 15 cargoes in the same period of 2024. Oando said it deliberately paused petrol import activities to realign its strategy with the structural changes in the domestic market.
“With the Dangote Refinery now meeting a large portion of Nigeria’s fuel needs, our focus has turned toward high-margin crude and gas trading opportunities,” the company stated. It also indicated plans to consider re-entering the refined products market once conditions stabilize.
Looking ahead, Oando said it will strengthen its crude trading operations, develop offtake-linked financing structures, and expand into gas and metals to build a more balanced and future-ready energy portfolio capable of sustaining long-term growth.
Since commencing operations in 2024, the 650,000-barrel-per-day Dangote Refinery has rapidly become a dominant force in Nigeria’s oil sector, drastically reducing the country’s dependence on imported petrol and diesel.
To further support local refining, the Federal Government recently introduced a 15 percent import duty on petrol and diesel. The move is designed to discourage cheap imports and protect domestic refineries as Nigeria edges closer to full self-sufficiency in fuel production.
Industry analysts believe the policy, coupled with Dangote’s rising output, will gradually push fuel importers out of the market while strengthening the country’s local refining capacity.
