Table of Contents
Key Points
- Oando, led by Wale Tinubu, distributes 679 million bonus shares, rewarding investors with an 8.3% yield amid Nigeria’s challenging oil market.
- Shareholders to receive one new Oando share for every twelve held, boosting investor confidence on the Nigerian Exchange and Johannesburg Stock Exchange.
- Despite a 15% revenue decline to N1.72 trillion, Oando pursues $1.5 billion fundraising for growth, debt restructuring, and energy diversification in Africa.
Oando Plc, an oil company led by Nigerian oil mogul Wale Tinubu, has completed the first phase of its shareholder reward program, issuing 679.36 million fully paid bonus shares. Investors on the company’s register as of Feb. 14, 2025, received one new share for every 12 they already held.
Oando rewards investors with share distribution
The share distribution follows approval at Oando’s 45th Annual General Meeting in December 2024, where shareholders agreed to a plan allowing the surrender and redistribution of company shares. In January 2025, the board approved a two-tranche program to distribute a total of 1.284 billion shares. The second tranche, linked to shareholders on record as of June 30, 2025, will be announced later.
Group Chief Executive Wale Tinubu described the distribution as a reflection of the company’s commitment to rewarding its investors. “By issuing one fully paid share for every twelve existing shares, with no dilution, we have effectively delivered an 8.3 percent yield at today’s market price, showing our dedication to creating value for shareholders,” Tinubu said.
Expanding footprint in Africa’s energy market
Listed on both the Nigerian Exchange (NGX) and the Johannesburg Stock Exchange (JSE), Oando is one of Africa’s leading indigenous energy companies, with operations spanning upstream exploration, midstream trading, and renewable energy initiatives.
Since its transformation from Unipetrol in 2003, Oando has grown steadily under Tinubu’s leadership. Through Ocean and Oil Development Partners, a joint venture with Omamofe Boyo, Tinubu maintains a 66.67 percent stake, cementing his influence in Nigeria’s oil and gas sector.
Revenue pressures amid sector challenges
Despite rewarding shareholders, Oando reported weaker earnings in the first half of 2025. Revenue fell 15 percent year-on-year to N1.72 trillion ($1.12 billion) from N2.03 trillion ($1.32 billion) in H1 2024. Gross profit dropped 28 percent to N59 billion ($38.5 million), reflecting lower oil prices and reduced trading volumes.
Even with these challenges, the company is looking ahead with optimism. The board recently approved a $1.5 billion multi-instrument issuance to boost liquidity and restructure debt. Oando also plans to raise N500 billion ($327.5 million) through a combination of equity and debt financing to fund growth and support its expanding energy portfolio.
