Oando Plc has disclosed that it has halted petrol importation into Nigeria, following the increasing supply of locally refined fuel from the Dangote Refinery, which has significantly reshaped the country’s downstream petroleum market. According to the company’s half-year and nine-month 2025 financial statements, the shift towards domestic refining has led to a decline in Premium Motor Spirit (PMS) imports, resulting in a 20 per cent drop in Oando’s trading revenues.
In its report, Oando explained that the rising output from the Dangote Refinery has reduced the need for imported petrol, a development it described as positive for Nigeria’s long-term energy security and self-sufficiency. However, this shift has exerted pressure on the firm’s trading division, which previously relied heavily on PMS import operations.
“Our trading segment faced headwinds which exerted pressure on revenue due to declining PMS imports, driven by the growing domestic refining capacity from the Dangote refinery, a development that strengthens national energy stability,” the company stated.
To cushion the impact of reduced PMS volumes, Oando said it has diversified its operations by sourcing crude from new suppliers, adjusting trade flows, and expanding into new commodity markets such as liquefied natural gas (LNG) and metals. These strategic adjustments are beginning to show positive results and are expected to improve performance in the next reporting period.
The company’s nine-month financial results showed that revenue fell 20 per cent year-on-year, from N3.2tn in the first nine months of 2024 to N2.5tn in the same period of 2025. This decline was attributed largely to reduced gasoline imports as the Dangote refinery ramped up supply, although higher production levels in the upstream segment provided some offset.
Gross profit also declined significantly, dropping 42 per cent to N113bn from N194bn in the previous year, reflecting lower trading margins and a shift in the company’s business mix. Despite the revenue contraction, Oando recorded a strong rise in profit after tax, which increased by 164 per cent to N210bn, driven by higher crude production volumes and recovery of previously outstanding assets.
Across its trading operations, Oando acknowledged that refined product volumes declined due to Dangote refinery’s success in supplying the domestic fuel market. As a result, the company shifted focus to expanding its crude export portfolio and strengthening pre-export financing structures. During the review period, Oando traded 21 crude cargoes totaling 19.8 million barrels, up from 15 cargoes (16.7 million barrels) in 2024.
The company confirmed that it made a deliberate decision to pause PMS trading due to the structural transformation in the downstream sector. It noted that with the Dangote refinery now meeting national fuel needs, attention has turned to higher-margin crude and gas trading, while the firm will reassess re-engagement in petrol trading as market conditions stabilise.
Looking ahead, Oando said it plans to deepen its crude trading strength, expand into gas and metals, and continue developing financing structures that support higher volumes and improved margins. This aligns with its broader goal of building a diversified and resilient energy business.
The Dangote refinery, which began operations in 2024, has quickly emerged as a key supplier in Nigeria’s fuel market, with a refining capacity of 650,000 barrels per day. To support domestic production, the Federal Government recently implemented a 15 per cent import duty on petrol and diesel, a move analysts say will further discourage imports and solidify local refining gains.
