Nigeria’s leading oil marketers have seen impressive revenue growth following the Federal Government’s removal of petroleum subsidies, which created a market-driven pricing structure.
According to recent financial statements filed on the Nigerian Exchange, TotalEnergies Marketing Nigeria, MRS Oil Nigeria, Eterna Plc, and Conoil Plc collectively reported earnings of approximately N1.3 trillion in the first nine months of 2024, marking a substantial year-on-year increase in profits and revenues from petroleum sales.
In this period, the companies invested N833.86 billion in importing petroleum products, resulting in a gross profit of N465.92 billion. The substantial revenue gain was achieved despite higher operational costs and the sharp rise in fuel import expenses, which jumped by nearly 99.4% from N418.1 billion in 2023 to N833.86 billion in 2024. The elimination of subsidies by the Nigerian government in May 2023 caused petrol prices to rise significantly, from around N200 per liter in mid-2023 to over N1,060 per liter by November 2024, thereby boosting revenue for these oil marketers.
A detailed breakdown shows that TotalEnergies Marketing Nigeria led fuel import spending, incurring N234.68 billion, an 84.95% increase from N126.88 billion spent in 2023.
The company’s revenue soared to N634.1 billion, translating to a gross profit of N399.4 billion, which is 100.21% higher than the N199.49 billion recorded in 2023. Conoil Plc also increased its import spending to N220.53 billion and reported an 82.96% revenue growth to N244.53 billion, resulting in a gross profit jump of 45.27%.
This policy shift has allowed these oil marketers to expand profit margins, evidenced by a cumulative net profit after tax of N45.3 billion—a 146% increase from N18.5 billion in 2023. With the removal of subsidies transforming the sector, these gains highlight the positive impact of a deregulated environment for Nigeria’s major oil marketers.
CREDIT: Allneeds, THE PUNCH
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