By Firdaus Jibril
Aradel Holdings Plc has revealed plans to begin producing petrol at its modular refinery by 2027.
Temitayo Ogunbanjo, who manages Aradel’s refinery business, disclosed the plan in an interview with Bloomberg, saying the deregulation of Nigeria’s downstream petroleum market had created a pathway for the company to begin manufacturing petrol.
The refinery currently produces products including kerosene, diesel, gas oil and naphtha.
The planned addition of petrol production would expand Aradel’s refining operations at a time when Nigeria is seeking to increase domestic refining capacity and reduce reliance on imported petroleum products.
Aradel’s latest financial performance also shows significant growth in the company’s overall business.
The company recorded ₦2.49 trillion in revenue in the first half of 2026, representing a 576.9 per cent increase compared with the corresponding period, according to the company’s H1 2026 performance report.
Operating profit stood at ₦1.05 trillion, up 789.6 per cent year-on-year, while profit after tax rose by 30.5 per cent to ₦191 billion.
The company’s total equity also increased by 48.2 per cent to ₦2.16 trillion during the period.
Crude oil remained Aradel’s biggest revenue contributor, generating ₦1.93 trillion, representing 77.8 per cent of total revenue. Gas contributed ₦427.8 billion, or 17.17 per cent, while refined products generated ₦125.8 billion, accounting for 5.05 per cent.
The figures highlight the continuing importance of Aradel’s upstream operations to its earnings, while its refining business remains a smaller but growing part of the group’s revenue base.
The company’s planned petrol production could therefore further increase the contribution of refined products to its business once the project comes on stream.
Nigeria’s downstream petroleum market has undergone significant changes since the removal of petrol subsidy in 2023. The shift has allowed refiners and other market participants to operate in a more market-driven environment.
Meanwhile, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said in July that modular refineries, including Walter Smith, Edo Refinery and Aradel Refinery, were operating and producing about 478,000 litres of diesel daily, with 562,000 litres supplied to the domestic market.
The regulator also reported that the Dangote Petroleum Refinery produced an average of 39.1 million litres of petrol per day during the period.
Aradel’s planned entry into petrol production would add another domestic refining source to Nigeria’s growing refining landscape when the company begins production in 2027.