Prime Business Africa
Oando Plc is losing its revenue to the cost of production, and the turnover is also decreasing, leading to the company’s pretax profit crashing by 96.03 percent, according to Prime Business Africa’s analysis.
The analysis showed that costs gulped 99.13 percent of Oando’s revenue in 2025, rising from the 96.18 percent of turnover that expenses gulped in 2024.
Join our WhatsApp ChannelOando had generated N3.21 trillion revenue last year, which falls below the N4.08 trillion turnover the company recorded in 2024, representing a 21.37 percent drop in top line.
Based on the company’s unaudited interim consolidated and separate interim financial statements
for the three and nine months ended December 31, 2025 and 2024, Oando’s cost of sales also dropped by 18.96 percent year-on-year.
The earnings statement showed that the cost of sales decreased slightly to N3.18 trillion in 2025, from the N3.93 trillion recorded the previous year.
With revenue falling more than the cost of production, Oando’s gross profit crashed to N27.75 billion last year, below the N155.88 billion secured in 2024, representing an 82.19 percent decline.
The company also saw administrative expenses drop by 54.48 percent to N278.05 billion in 2025, compared to the N610.85 billion sustained in 2024.
Prime Business Africa noted that the impact of the decline was eroded by a 97.34 percent year-on-year increase in finance cost, as the company incurred N465.40 billion due to interest on borrowings, amongst others, in 2025, against the N235.83 billion paid the year before.
However, this was offset by a significant rise in interest earned on bank deposits, amongst others, as finance income jumped 707.47 percent year-on-year, according to analysis, from N47.19 billion to N381.10 billion.
As a result, Oando’s net finance costs, which indicate expenses are more than earnings, nosedived to N36.19 billion last year, from N188.63 billion in 2024.
While the 80.81 percent drop in net finance costs was not enough to raise Oando’s pretax profit, it did not prevent it from declining either, as profit before tax (PBT) fell by 96.03 percent year-on-year.
The company’s profit before tax decreased to N15.20 billion in 2025, as Oando could not replicate the N383.82 billion recorded in 2024.
Following the sharp decline, Oando’s bottom line was supported with a tax credit of N226.11 billion last year — although the company had paid N163.7 billion as taxes in 2024.
Consequently, the oil company reported N241.31 billion as profit after tax in 2025, surpassing the N220.12 billion post-tax achieved the previous year, representing a 9.62 percent increase.
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