Oando Plc has announced the suspension of its petrol importation activities following the ramp-up of domestic fuel supply from the newly operational Dangote Refinery, which continues to reshape Nigeria’s downstream petroleum market.
In a statement released on Wednesday, the indigenous energy company said the refinery’s growing output has significantly altered trading dynamics in the sector, leading to a 20 percent decline in its trading revenue for the period ending September 30, 2025.
According to Oando, the company decided to halt petrol imports after observing a “structural shift” in market behavior as a result of increased local production. “The importation of Premium Motor Spirit (PMS) is no longer as viable as it used to be due to the growing supply of domestically refined products,” the statement read.
The development marks a turning point for Nigeria’s fuel market, which has for decades relied heavily on imported petroleum products due to the poor state of government-owned refineries. The 650,000 barrels per day Dangote Refinery, located in Lekki, Lagos, has begun to fill this gap, supplying both the domestic market and some West African countries.
Industry experts say the refinery’s growing influence is already transforming the sector, forcing major importers like Oando and other marketers to review their operations. The decision is expected to reduce Nigeria’s dependence on foreign exchange for fuel importation, a move analysts believe will strengthen the naira and stabilize supply.
However, the shift comes with short-term market disruptions. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) recently confirmed that imported petrol still lands in the country at an average cost of ₦829 per litre, with a 15 percent import tariff making local alternatives more attractive.
Oando’s withdrawal from petrol importation signals confidence in Dangote Refinery’s capacity to meet domestic demand. But stakeholders caution that the refinery’s full-scale operations will require efficient distribution networks, adequate storage facilities, and a fair pricing regime to ensure consistent supply across the country.
The Dangote Refinery, Africa’s largest single-train facility, has been described as a game-changer for Nigeria’s energy independence. Its growing output is expected to save the country billions of dollars in foreign exchange, create jobs, and restore confidence in local refining.
With Oando’s strategic shift, analysts believe other major marketers may soon follow suit, marking the beginning of a new era in Nigeria’s petroleum industry—one led by domestic refining rather than foreign dependence.
© Abuja Network News
Reporting for national interest and public accountability.