In a major shift for Nigeria’s downstream petroleum industry, Oando Plc has suspended the importation of Premium Motor Spirit (PMS), commonly known as petrol, following increased domestic supply from the Dangote Refinery, which has drastically altered market dynamics and reduced reliance on imported fuel.
The energy firm disclosed the development in its half-year and nine-month 2025 financial reports, revealing that its trading segment experienced a 20 per cent decline in revenue as local refining capacity continued to expand.
Dangote Refinery’s Impact on Oando’s Business
According to the company, the surge in local production, spearheaded by the Dangote Refinery’s growing output, has significantly reduced petrol importation volumes into Nigeria.
This has, in turn, affected Oando’s trading performance, leading to a contraction in topline revenue from N3.2 trillion in the first nine months of 2024 to N2.5 trillion in the same period of 2025.
“Our trading segment faced headwinds that exerted pressure on both revenue and the group’s topline due to declining PMS imports into the country.
However, this is a positive development for Nigeria’s energy independence and self-sufficiency,” Oando said in its report.
The company explained that it had strategically diversified its operations to mitigate the effects of declining petrol imports.
This included expanding crude offtake sources, optimising trade routes, and venturing into liquefied natural gas (LNG) and metal trading — sectors it expects will drive future growth.
Oando Suspends Petrol Imports Amid Market Transition
In line with the evolving fuel supply landscape, Oando suspended petrol imports to realign its business model with new domestic realities.
The firm described the move as a “conscious strategic decision” to adapt to the structural shift brought about by the commencement of full-scale operations at the Dangote Refinery.
“In 9M 2025, our trading division maintained progress despite market volatility.
We traded 21 crude oil cargoes totalling 19.8 million barrels, compared to 15 cargoes in 2024, showing resilience in our upstream business.
However, we made a deliberate decision to pause PMS importation, recognising that the refinery now supplies much of Nigeria’s domestic demand,” the company said.
Oando added that while refined product trading had declined, its crude exports and structured pre-export transactions continued to post “robust success,” highlighting a strong recovery in other business segments.
Financial Performance Reflects Industry Realignment
Despite the 20 per cent revenue dip, Oando recorded an impressive 164 per cent growth in profit after tax, reaching N210 billion in the first nine months of 2025 — up from N76 billion in the previous year.
The company attributed the performance to higher production volumes, stronger crude trading, and legacy recoveries.
Gross profit, however, fell by 42 per cent from N194 billion to N113 billion, reflecting the decline in its trading segment and the ongoing market transition.
Oando maintained that these short-term adjustments were necessary as the company shifts towards more sustainable and profitable areas of operation.
A New Era in Nigeria’s Fuel Supply Chain
The 650,000 barrels-per-day Dangote Refinery, which began large-scale operations in 2024, has emerged as a game-changer for Nigeria’s energy market.
The refinery’s ramp-up has drastically reduced the country’s dependence on imported fuel and is gradually displacing traditional importers such as Oando from the PMS segment.
Industry analysts note that this marks the beginning of a new competitive structure in Nigeria’s downstream sector, with local refining becoming the dominant supply source for petrol and diesel.
“The success of the Dangote refinery has reshaped market economics,” said Lagos-based energy analyst, Dr. Oluwaseun Adebayo.
“Oando’s suspension of petrol imports is an inevitable response to this structural change.
The company’s pivot to crude and LNG trading is a smart move that will ensure resilience and relevance in the evolving market.”
Policy Shifts to Protect Domestic Refining
To further consolidate gains in local refining, the Federal Government recently introduced a 15 per cent import duty on imported petrol and diesel, aimed at discouraging cheap imports and promoting the growth of domestic refineries.
The new tariff policy aligns with the government’s energy security agenda, encouraging local production while stabilising the market against foreign competition.
Industry experts believe the measure will eventually make fuel importation economically unattractive, forcing more players to adopt local sourcing strategies.
“The combination of increased Dangote output and higher import duties will inevitably squeeze import margins,” said an oil market observer. “Oando’s suspension of petrol imports is an early sign of this market correction.”
Future Outlook: Diversification and Energy Transition
Looking ahead, Oando says its focus will remain on deepening crude trade flows, expanding LNG operations, and venturing into metals trading as part of its broader transition towards a balanced and future-ready energy portfolio.
“The goal is to build operational resilience, strengthen crude trading, and develop offtake-linked financing structures to unlock incremental volumes.
We will continue diversifying into gas and metals trading to position Oando for long-term value creation,” the company stated.
With Nigeria’s refining capacity rising and market policies favouring local content, Oando’s strategic realignment reflects a broader industry shift — one that prioritises energy self-sufficiency, efficiency, and sustainability.
The suspension of petrol imports by Oando signals a turning point in Nigeria’s downstream oil industry, as the Dangote Refinery cements its role as the nation’s dominant fuel supplier.
For Oando, the shift marks both a challenge and an opportunity — a chance to reinvent its trading business and play a leading role in Nigeria’s clean energy future.
