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INDUSTRY REVIEW: Mixed fortunes, as Nigerian oil firms make N1.02trn from price hike amid fuel scarcity



Nigerian oil companies are the biggest gainers in the scarcity of Premium Motor Spirit (PMS) within the country, that has led to Nigerians buying fuel above government-controlled pump price.

The country experienced shortfall in petrol supply throughout 2022. This resulted in various prices surfacing across retail stations, as oil marketers approach private depot to purchase fuel amid lack of supply from the sole importer, Nigerian National Petroleum Company (NNPC) Limited.

How Nigeria’s oil market performed amid fuel scarcity

In a market analysis of six major oil companies operating in the country, Ripples Nigeria exclusively gathered that during the scarcity in 2022, the firms generated N1.02 trillion in revenue within the first nine months. At the time of the analysis, fourth quarter turnover was yet to be released.

This publication analysed earnings generated by Conoil, Ardova, Eterna, Total, Seplat and MRS Oil, and learnt that they grew the industry’s revenue by 32.61 per cent, against the N776.61 billion recorded within the same period in 2021.

The oil companies also reported a combined bottom line of N95.16 billion between January to September last year. Net profit of the firms rose by a whopping 72.16 per cent year-on-year when compared to the N55.27 billion profit after tax recorded in 2021.

Note that the growth in revenue and net profit is on the back of some retailers shutting some stations due to scarcity of fuel. This means some companies’ earnings were also impacted despite the industry recording growth.

Why oil companies gain amid scarcity

Ripples Nigeria had learnt that the various group of oil marketers have been selling at various prices despite Nigeria still operating a regulated oil industry.

The government-approved pump price is N179/litre, however, retailers under the umbrella of Major Oil Marketers Association of Nigeria (MOMAN) are selling above N200 per litre, while those under the Independent Petroleum Marketers Association of Nigeria (IPMAN) have been selling above N230 per litre since 2022.

The oil companies increased their pump price despite the Federal Government paying N173.2 billion between 2019 and 2022 to the marketers for cost of fuel distribution, to ensure marketers don’t increase fuel price and sell at the government-approved price.

How each Nigerian oil company performed financially


Amid the scarcity, MRS Oil saw its revenue and profit after tax grow by 29.9 per cent and 1823 per cent respectively – indicating the company gained from the scarcity period.

A breakdown of the company’s earnings disclosed MRS’s revenue grew by N15.91 billion year-on-year, generating N69.15 billion from January to September 2022, rising above the N53.23 billion the firm grossed a year before.

MRS’ bottom line blew past the revenue, as the net profit rose significantly above the N40.82 million reported between the first and third quarter of 2021 to N785.03 million last year.


The oil company was one of the best gainers during the fuel scarcity last year, as it recorded 49.80 per cent growth in revenue during the 2022 period in review.

Eterna generated N91.93 billion last year’s 9months, surpassing the N61.37 billion earned as turnover in the corresponding period of 2021.

Read also:No plans to increase fuel pump price —Sylva

Its profit after tax also grew significantly by 245.55 per cent year-on-year, posting N1.43 billion in the first nine months of last year, in contrast to the N415.98 million net profit reported in 2021.


Seplat grossed N258.70 billion in revenue between January to September 2022, raising its turnover by 41.60 per cent or N76 billion, considering it generated N182.70 billion within the same period in 2021.

Also, the company reported 100.78 per cent growth in its profit after tax, as it closed the first nine months of 2022 with N77.50 billion, above the n38.60 billion net profit of same period in 2021.


During the nine months period in review for 2022, Conoil generated N90.29 billion, however, its turnover fell by –10.58 per cent in contrast to the N100.97 billion earned during the corresponding period of 2021.

A review of Conoil’s net profit showed that despite the decline in turnover, the company was able to grow its bottom line by 84.16 per cent from N1.59 billion reported in the first nine months of 2021 to N2.93 billion the next year.


Total generated N337.18 billion within the first nine months of last year. This is N94.96 billion or 39.20 per cent more than the N242.22 billion grossed a year before.

Ripples Nigeria analysis showed that Total’s management couldn’t save its bottom line which fell by –6.58 per cent to N12.50 billion during the review period in 2022, closing the 9 months below the N13.38 billion reported as net profit the previous year.


Ardova’s revenue for the period between January to September 2022 was N182.59 billion. This is a 34.16 per cent year-on-year growth when compared to the N136.10 billion generated during 9months of 2021.

However, the 34.16 per cent growth in revenue was not enough to save Ardova’s bottom line. Despite recording N1.24 billion within first and third quarter of 2021, the company suffered a N4.34 billion loss during the same period.

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