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The Digest:

Energy giant Oando Plc has officially suspended its petrol importation business, citing the transformative impact of the Dangote Refinery's domestic supply, which has disrupted Nigeria’s downstream sector and led to a 20% drop in the company’s trading revenue.

Key Points:
  • Oando announced the strategic pause in its Half-Year and Nine-Month 2025 financial reports.
  • The company's revenue declined by 20% to N2.5 trillion, primarily due to reduced petrol imports.
  • It acknowledged the Dangote Refinery's role in enhancing Nigeria's energy security.
  • Gross profit fell by 42% to N113 billion, in line with the reduced trading activity.
  • However, Profit After Tax saw a sharp 164% increase to N210 billion, driven by upstream operations.
  • Oando has shifted focus to crude oil exports, LNG, and metals to cushion the impact.
  • The federal government's new 15% import duty further solidifies the shift to a domestic market.
This strategic pivot reveals how the storm of local industrial disruption forces established players to navigate new currents, sacrificing old revenue streams to survive and find new avenues for growth.

Sources: The Cable