Oando Suffers $450 Million Revenue Loss as Dangote Refinery Reshapes Nigeria’s Oil Market
Oando Plc, one of Africa’s largest integrated energy companies, has reported a significant $450 million decline in revenue, linking the loss directly to the operational ramp-up of Aliko Dangote’s $20 billion refinery. The company said the new refinery has transformed Nigeria’s downstream oil market, sharply cutting the need for imported fuel—an area where Oando previously held a strong position.
In its nine-month financial report for 2025, Oando revealed that revenue plunged by 20 percent, from ₦3.19 trillion ($2.2 billion) to ₦2.54 trillion ($1.75 billion). According to the firm, the fall resulted “primarily from reduced gasoline imports following the Dangote Refinery’s full-scale production.” The development marks a pivotal moment for Nigeria, which for decades relied heavily on imported refined products.
Chief Executive Wale Tinubu explained that Oando temporarily halted its petrol marketing operations during the refinery’s scale-up period. “Refined-product volumes have remained under pressure, largely because of the Dangote refinery’s success in meeting domestic demand,” Tinubu said. He added that Oando is now concentrating on expanding global crude exports and leveraging pre-export financing to maintain profitability.
With the Dangote Refinery supplying an estimated 20 million liters of petrol daily since mid-September, Nigeria’s dependence on imported fuel has significantly decreased. Oando’s strategic pivot to higher-margin crude and gas trading aligns with the changing market landscape, as the company explores new opportunities in energy financing, gas, and metals to build a more resilient business model.
Meanwhile, Aliko Dangote announced plans to expand the refinery’s capacity from 650,000 to 1.4 million barrels per day within three years. The expansion, he said, would be funded through internal cash flow and potential partnerships. Once completed, the Dangote Refinery will become the world’s largest, capable of generating up to $55 billion in annual revenue while boosting Nigeria’s foreign exchange reserves and energy independence.
source: Billionaireafrica