Table of Contents
Key Points
- Oando Plc, led by oil mogul Wale Tinubu, approves $1.5 billion multi-instrument issuance to boost liquidity and drive long-term energy sector growth.
- Shareholders approve N500 billion ($326.2 million) equity raise, including up to 10 billion shares, to strengthen balance sheet and enhance capital efficiency.
- Funding plan supports Oando’s diversification into renewables, including $1.2 billion solar panel factory to expand Nigeria’s clean energy manufacturing capacity.
Oando Plc, a leading Nigerian oil company headed by Wale Tinubu, has approved a $1.5 billion multi-instrument issuance program aimed at improving liquidity and supporting its long-term growth plans.
The funding initiative, approved at the company’s 46th Annual General Meeting, was disclosed in a filing to the Nigerian Exchange Limited by Oando’s Chief Compliance Officer and Company Secretary, Folashade Ibidapo-Obe.
Under the program, Oando can issue bonds, certificates, and other financial instruments in phases, subject to regulatory approval. The move is part of a broader effort to strengthen the company’s balance sheet and navigate the challenges of Nigeria’s competitive energy market.
Shareholder approval for $326.2 million equity raise
In addition to the $1.5 billion program, shareholders authorized the board to raise up to N500 billion ($326.2 million) in new equity through the issuance of up to 10 billion ordinary shares. The shares may be offered via public offerings, private placements, debt-to-equity swaps, rights issues, or other approved methods, with pricing determined through book building or other valuation models.
The board also secured the mandate to convert up to $300 million of Reserves-Based Lending debt into equity, a move expected to lower debt servicing costs and improve capital efficiency. This step is aimed at reducing leverage and enhancing financial resilience, especially in the wake of fluctuating oil prices and changing market dynamics.
Capital restructuring and strategic expansion
Oando’s capital plan comes alongside changes to its Memorandum and Articles of Association, updating the company’s share capital structure following the fundraise. Under Wale Tinubu’s leadership, Oando has grown into a major player across upstream, midstream, and downstream operations, holding a 66.67 percent stake through Ocean and Oil Development Partners, his joint venture with Omamofe Boyo.
The first half of 2025 was challenging for the company. Revenue fell 15 percent year-on-year to N1.72 trillion ($1.12 billion), down from N2.03 trillion ($1.32 billion) in H1 2024, affected by weaker prices and lower trading activity. Gross profit also declined 28 percent to N59 billion ($38.5 million), reflecting the drop in revenue. Despite these setbacks, Oando remains committed to broadening its business and finding new opportunities.
In line with this, the company is shifting focus toward renewable energy. In July, it announced plans for a $1.2 billion solar panel factory, featuring Africa’s first solar recycling line, aimed at boosting Nigeria’s clean energy manufacturing capacity and creating green jobs. Together with its funding initiatives, these steps position Oando to better navigate oil market fluctuations while expanding its role in both traditional energy and renewable solutions.
