Afreximbank Raises Oando's Loan To 375 Million As President's Nephew Drives Expansion

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 Plcled by Nigerian oil executive Wale Tinubu, a nephew of President Bola Ahmed Tinubuto 375 million. The funding gives fresh support to Oandos 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.

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 Africas energy sector. He also noted the participation of Mercuria, a global commodities powerhouse, bringing financial strength and technical expertise to the deal.

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 Nigerias 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.