Table of Contents
Key Points
- Oando plans $1.2 billion solar panel factory with Africa’s first recycling line, aiming to boost domestic manufacturing and green jobs in Nigeria.
- Q1 profit surged 90.5% to $73.84 million, driven by finance cost reversal and $106.85 million tax credit; revenue reached $608.9 million.
- Oando to raise $327.5 million in fresh capital and expand drilling, with $250–$270 million earmarked for upstream and clean energy projects.
Oando Plc, a leading oil company led by Nigerian oil mogul Wale Tinubu, is accelerating efforts to diversify into renewables, announcing progress on a landmark $1.2 billion solar PV module assembly plant, according to its Q1 2025 financial results.
The proposed 1.2-gigawatt solar project, set to be Africa’s first of its kind with an integrated recycling line, is part of Oando's broader clean energy strategy to expand domestic manufacturing, renewable capacity, and green jobs.
Africa’s first solar panel recycling line
Oando Clean Energy and Nigeria’s Rural Electrification Agency (REA) recently signed a Memorandum of Understanding (MoU) to formalize the groundbreaking initiative. Land acquisition and financial modelling are already complete, the company confirmed.
“This is Africa’s first solar module assembly plant with a recycling line,” said Demola Ogunbanjo, President and CEO of Oando Clean Energy. “We’re creating circular value by turning old, dysfunctional solar panels into usable raw materials.”
REA's CEO, Abba Aliyu, added: “This partnership not only boosts access to electricity but repositions Nigeria as a renewable energy hub on the continent.” A 600MW initial production line is expected by 2026, unlocking large-scale solar infrastructure development, boosting local supply chains, and expanding access to energy across Nigeria.
Strong upstream gains and clean energy momentum
Oando is deepening its focus on upstream oil operations while also stepping up its push into renewable energy. Its electric mobility initiative gained further ground during the quarter, with 53,941 electric vehicle rides recorded and an estimated 42,779 kilograms of CO₂ emissions avoided through its e-bus program.
“Following a transformative 2024, our priority now is to maximize the value of our expanded upstream portfolio,” said Wale Tinubu, Group Chief Executive. “We’ve secured working capital to fund drilling and infrastructure upgrades, while restructuring our balance sheet for long-term resilience.”
Solid Q1 earnings and fresh capital raise
Under Wale Tinubu, Oando has grown into a key player in Nigeria’s energy sector, with operations spanning upstream, midstream, and downstream. Since its transformation from Unipetrol in 2003, it has expanded steadily, with Tinubu—through Ocean and Oil Development Partners, a joint venture with Omamofe Boyo—holding a 66.67 percent controlling stake.
Oando reported a 90.5 percent surge in Q1 profit to N113.06 billion ($73.84 million) from N59.35 billion ($38.75 million) in Q1 2024, buoyed by a reversal in finance costs and a tax credit of N165.62 billion ($106.85 million). Revenue rose 1.87 percent to N932.57 billion ($608.9 million).
The board recently approved a N500 billion ($327.5 million) capital raise through equity and debt to fund its energy transition and upstream expansion. The company also secured a fresh injection from Afreximbank, which raised Oando’s reserve-based lending facility to $375 million, following the early repayment of a prior $525 million loan.
Expanding regional presence and capital base
Beyond Nigeria, Oando is scaling its regional footprint with a new entry into Angola’s Kwanza Basin, and was recently named preferred bidder for the Guaracara Refinery in Trinidad and Tobago—underscoring its Afro-Caribbean ambitions.
The group is targeting 30,000–40,000 barrels of oil equivalent per day in 2025, with $250–$270 million in capital expenditure earmarked for drilling, infrastructure, and ESG programs aimed at reducing costs by 20 percent.
