By Ademola Adekusibe
November 6, 2025.
Oando Plc has suspended its petrol importation into Nigeria, citing disruptions in the downstream oil market caused by the Dangote Petroleum Refinery’s increasing dominance in local fuel supply.
The company said the entry of locally refined petrol from Dangote has reshaped the market dynamics, leading to a sharp drop in trading revenue and altering the flow of petroleum imports into the country.
According to Oando’s latest financial disclosure, the firm’s trading revenue fell by about 20 per cent as the Dangote refinery’s output gradually displaced imported products from major suppliers.
Insiders in the oil sector say that the Dangote refinery, which began selling petrol locally earlier this quarter, has started to set a new pricing structure that makes importation less competitive.
Before now, Oando had been one of the major importers of Premium Motor Spirit (PMS), supplying both retail marketers and industrial users. However, with Dangote’s growing capacity and lower logistics costs, importers are finding it increasingly difficult to compete on price and volume.
While Oando says the decision to halt petrol imports is strategic and temporary, analysts view it as a sign of a broader shift in Nigeria’s fuel market, from import dependency to domestic refining dominance.
Industry watchers believe that as Dangote ramps up output, more players may exit importation and reposition as distributors or partners in the refinery’s supply chain.
Oando has yet to clarify when or if it will resume imports, but company executives say their focus is now on aligning with Nigeria’s emerging energy transition led by indigenous refining capacity.
