Conoil Slashes Dividend as Profit Plunges 75% on Dangote Price War
Conoil Plc, a Nigerian fuel marketing company, has announced a drastic cut to its shareholder payouts for 2025 following a 75.4 percent drop in its earnings caused by the Dangote refinery price war.
The company’s profit after tax tumbled to N2.16 billion from N8.77 billion in the previous year. The sharp decline underscores the immense pressure downstream operators are facing as market dynamics shift and pricing battles erode profitability.
In response to the earnings slump, Conoil’s board of directors has proposed a dividend of 200 kobo per ordinary share for 2025, totalling N1.39 billion and representing a 42.9% drop from the previous year’s payout.
For the year ended December 31, 2024, shareholders had enjoyed a dividend of 350 kobo per share, totaling N2.43 billion, which was approved at the Annual General Meeting (AGM) held on December 19, 2025.
The company noted that the newly proposed dividend remains subject to shareholder approval at the upcoming AGM, as well as the appropriate deduction of withholding tax.
As the downstream sector continues to navigate the ripple effects of the Dangote price war, investors will be watching closely to see how Conoil and its peers adjust their strategies to recover market share and stabilize margins in the coming quarters.
