Nigerian energy giant, Oando Plc is embarking on a bold new phase of growth and financial restructuring, having secured board approval to raise $327.5 million through a strategic mix of equity and debt financing. The move aims to fuel fresh business opportunities and strengthen the company’s balance sheet as it navigates a dynamic energy market under the leadership of Nigerian oil magnate Wale Tinubu.
The capital raise, which will be presented to shareholders at Oando’s upcoming 46th Annual General Meeting, could take various forms including public offerings, private placements, rights issues, debt-to-equity conversions, or a combination of these. The company plans to issue up to 10 billion ordinary shares valued at market-driven prices, subject to regulatory approvals. This substantial fundraising effort, equivalent to about N500 billion, is designed to give Oando the flexibility and resources necessary to pursue its ambitious growth agenda.
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Alongside the capital raise, Oando is proposing to convert up to $300 million of its existing reserve-based lending facility into equity. This conversion is expected to ease the company’s debt burden, simplify its capital structure, and reduce financing pressures. The board has been authorized to enter into capital restructuring agreements with key lenders and stakeholders, signaling a proactive approach to financial management. Furthermore, Oando is considering the establishment of a multi-instrument issuance program valued at up to $1.5 billion. This program would allow the company to issue bonds, notes, or other financial instruments as opportunities arise, further diversifying its financing toolkit. Plans also include increasing the company’s share capital from N5 billion to N20 billion by creating 30 billion additional ordinary shares.
Shareholders will also address several other corporate governance matters at the AGM, such as the reappointment of BDO Professional Services as auditors, directors’ remuneration, election of audit committee members, and resolutions concerning related-party transactions. These steps underscore Oando’s commitment to transparency and strong governance amid its transformative phase.
Under the stewardship of Wale Tinubu, who controls a 66.67 percent stake through the Ocean and Oil Development Partners joint venture, Oando has solidified its position as a key player across Nigeria’s upstream, midstream, and downstream energy sectors. Since its evolution from Unipetrol in 2003, the company has expanded steadily, capturing a growing share of the energy market.
Financially, Oando demonstrated robust performance in the first quarter of 2025, with profits soaring by 90.5 percent to N113.06 billion ($72.94 million), compared to N59.35 billion ($38.28 million) in the previous year’s quarter. This improvement was driven by a turnaround in net finance income, which rose to N67.78 billion ($43.72 million) from a prior loss, alongside a significant income tax credit of N165.62 billion ($106.85 million). Despite an operating loss of N120.34 billion ($77.63 million) attributed to a one-time fair value adjustment, the company managed to deliver a strong net result, highlighting its resilience and financial discipline.
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Adding momentum to Oando’s expansion plans, the African Export-Import Bank (Afreximbank) recently increased the company’s reserve-based lending facility to $375 million. This enhanced funding follows a strategic decision to repay most of a prior $525 million facility secured in 2019, reducing outstanding debt to $100 million by early 2024. The fresh injection of capital is expected to propel Oando towards ambitious production targets of 100,000 barrels of oil and 1.5 billion cubic feet of gas per day by 2029, marking a significant milestone in its long-term growth strategy.
With these developments, Oando is positioning itself not only to capitalize on emerging opportunities in Nigeria’s energy sector but also to navigate the challenges of a complex market environment with greater financial agility and operational strength. Under Wale Tinubu’s guidance, the company is set to write a new chapter in its storied history, driving sustainable growth and delivering value to shareholders and stakeholders alike.
