Table of Contents
Key Points
- Afreximbank boosts Wale Tinubu-led Oando loan to $375 million to accelerate oil and gas production in Nigeria through a reserve-based lending facility.
- Oando targets 100,000 barrels of oil, 1.5 billion cubic feet of gas daily by 2029, supported by new financing and major upstream investments.
- Oando posts 90% Q1 profit surge, closes $650 million insurance-backed NAOC asset deal, strengthening its energy portfolio and partnership with Afreximbank.
The African Export-Import Bank (Afreximbank) has increased its reserve-based lending facility to Oando Plc—led by Nigerian oil executive Wale Tinubu, a nephew of President Bola Ahmed Tinubu—to $375 million. The funding gives fresh support to Oando’s push to grow its oil and gas operations.
The new deal comes after Oando paid down a previous $525 million facility secured in 2019, which had been reduced to $100 million by early 2024. The latest facility is expected to help the company scale up production to 100,000 barrels of oil and 1.5 billion cubic feet of gas per day by 2029.
Strategic financing to boost Nigeria’s oil output
RBL facilities allow energy companies to borrow against future cash flows from proven reserves. According to Afreximbank, the revised facility will support increased oil production, energy infrastructure development, and job creation in Nigeria.
Haytham Elmaayergi, Executive Vice President of Global Trade Bank at Afreximbank, called the transaction critical to advancing local content and capacity building in Africa’s energy sector. He also noted the participation of Mercuria, a global commodities powerhouse, bringing "financial strength and technical expertise" to the deal.
Oando’s expanding footprint in energy
Under Wale Tinubu, Oando has evolved into a multinational energy player with a presence across upstream, midstream, and downstream sectors. After rebranding from Unipetrol in 2003, Oando expanded its operations and now holds a dominant position in Nigeria’s energy market. Through Ocean and Oil Development Partners (OODP), a joint venture with Omamofe Boyo, Tinubu holds a 66.67 percent stake in Oando, solidifying his influence in the sector.
"This facility upsizing underscores our commitment to unlocking value across our asset base," Tinubu said, adding that current reserves could generate over $11 billion in net cash flows for Oando over their lifecycle.
Strong Q1 earnings and strategic acquisitions
Oando reported a 90.51 percent rise in Q1 2025 profit, driven by net finance income of $43.7 million and a tax credit of $106.8 million. The company also recently secured a $650 million insurance-backed deal to support its $783 million acquisition of Nigerian Agip Oil Company (NAOC) assets. Backed by AfrexInsure, the insurance unit of Afreximbank, the deal further expands Oando’s asset base and deepens its strategic alliance with the development bank.
