Oando Plc has officially suspended its petrol importation amid the rising influence of the Dangote Refinery, which continues to reshape Nigeria’s downstream energy market. The energy giant reported that the surge in local refining capacity has led to a 20% decline in its trading revenue, highlighting a significant shift in how the nation meets its fuel needs.
In its half-year and nine-month 2025 financial reports, Oando explained that the trading segment faced considerable headwinds as the demand for imported Premium Motor Spirit (PMS) fell. “Our trading segment faced pressure due to declining PMS imports, a result of rising local refining capacity from the Dangote Refinery—a positive development that enhances Nigeria’s energy security,” the company said. To adapt, Oando diversified its crude offtake, optimized trade flows, and expanded into liquefied natural gas and metals.
Despite a 20% year-on-year revenue drop to N2.5 trillion for the first nine months of 2025, Oando recorded a sharp 164% increase in net earnings to N210 billion. The company attributed this rise to stronger production volumes and legacy recoveries, which partially offset the decline in petrol import revenue. Gross profit, however, fell by 42% to N113 billion, reflecting the changing market dynamics and a shift in segment performance.
Oando confirmed that refined product volumes remain under pressure, largely due to the success of the Dangote Refinery, which now meets a significant portion of Nigeria’s fuel demand. “Our focus has shifted to expanding global crude exports and leveraging pre-export transactions, where we continue to see robust performance,” the company stated. During the nine-month period, Oando traded 21 crude oil cargoes, up from 15 the previous year, while deliberately pausing PMS trading to respond to the structural market shift.
Looking ahead, Oando plans to strengthen crude trade flows and diversify into gas and metals, aiming to build a more balanced energy portfolio. The Dangote Refinery, with its 650,000 barrels-per-day capacity, has dramatically reduced Nigeria’s dependence on imported petrol and diesel. Coupled with the government’s recent 15% import duty on fuel, analysts predict that local refining will increasingly dominate the market, gradually pricing out traditional importers.
source: punch