Oando suspends petrol imports as Dangote raises output

Oando Plc says it has suspended petrol importation into the country as the commencement of domestic fuel supply by the Dangote Refinery continues to disrupt Nigeria’s downstream market, leading to a 20 per cent fall in its trading revenue.

In its H1 and nine-month 2025 financial reports, the energy company said its trading segment faced headwinds that exerted pressure on both the entity’s revenue and the group’s topline, following the decline in Premium Motor Spirit imports into the country due to rising local refining capacity.

“Our trading segment faced headwinds which exerted pressure on the entity’s revenue and the Group’s topline as a result of declining PMS imports into the country due to rising local refining capacity from the Dangote refinery, a positive development that enhances Nigeria’s energy security and self-sufficiency,” the company said in its H1 report.

It explained that in response to the changing environment, it diversified crude offtake sources, optimised trade flows, and expanded into new commodities like liquefied natural gas to cushion the impact of lost PMS volumes.

“In response, we diversified our crude offtake sources, optimised trade flows, and expanded into LNG and metals. These initiatives are already gaining traction and will support stronger performance in H1,” Oando stated.

According to the 9M report, revenue declined by 20 per cent year-on-year to N2.5tn in the first nine months of 2025, compared with N3.2tn in the same period of 2024. The company attributed the fall primarily to a reduction in gasoline imports following the ramp-up of the Dangote refinery, though this was partly offset by stronger upstream contributions.

“Revenue declined by 20 per cent year-on-year to N2.5tn (9M 2024: N3.2tn), primarily due to a reduction in gasoline imports following the ramp-up of the Dangote refinery, which has positively transformed Nigeria’s refined-product supply landscape, partly offset by stronger upstream contributions,” the firm noted.

Gross profit also decreased by 42 per cent to N113bn compared to N194bn in the same period last year. The decline was in line with the topline contraction and changing segment mix, Oando reported.

However, the company recorded a sharp rise in net earnings during the period under review.

“Profit after tax increased by 164 per cent to N210bn (9M 2024: N76bn), driven by stronger production volumes and legacy recoveries,” it said.

Across its trading business, Oando acknowledged that refined product volumes remained under pressure largely due to the success of the Dangote refinery in meeting Nigeria’s fuel needs.

“Across our trading business, refined products volumes remained under pressure, largely due to the well-deserved and expected success of the Dangote refinery in meeting Nigeria’s import needs. Consequently, our focus had shifted to expanding global crude exports and leveraging structured pre-export transactions, an area in which we have continued to record robust success,” it stated.

During the review period, Oando said it maintained progress in crude trading while deliberately pausing PMS activities in response to the structural shift in the domestic market.

“In 9M 2025, the Trading Division continued to execute its strategic priorities despite persistent market volatility. A total of 21 crude oil cargoes (19.8 million barrels) were traded during the period, up from 15 cargoes (16.7 MMbbl) in 9M 2024, reflecting sustained momentum under Project Gazelle and stronger crude trading performance,” it said.

Conversely, it was added that “the vision made a conscious strategic decision to pause PMS trading activities during the period, recognising the structural shift in Nigeria’s downstream market following the full commencement of domestic supply from the Dangote refinery.”

It added, “With the refinery now fulfilling its intended role in supporting national product availability, Oando has redirected its focus towards higher-margin crude and gas trading opportunities, while continuing to evaluate re-entry into the refined-product segment as market dynamics stabilise.

Looking ahead, Oando said it would focus on strengthening crude trade flows and expanding into gas and metals.

“The focus going forward is on deepening operational resilience and optimising existing crude trade flows, supported by the development of offtake-linked financing structures to unlock incremental volumes and strengthen margins. In parallel, the division is advancing plans to diversify into gas and metals trading, aligning with the group’s broader strategy to build a balanced, future-ready energy portfolio and deliver sustained long-term value,” the report stated.

The Dangote refinery, which began production in 2024, has since become a dominant player in Nigeria’s fuel market. With a capacity of 650,000 barrels per day, the plant said it now supplies much of the nation’s petrol and diesel needs, significantly cutting the country’s dependence on imported products.

Last week, the Federal Government introduced a 15 per cent import duty on petrol and diesel to discourage cheap fuel imports and protect local refineries.

The policy is aimed at consolidating domestic refining gains and stabilising the market amid Dangote’s rapid scale-up.

Analysts said the new tariff, coupled with the refinery’s growing output, would eventually price importers out of the market. (Punch)