Table of Contents
Key Points
- Oando secures $650 million Agip deal with AfrexInsure backing, boosting expansion in Nigeria’s energy sector.
- AfrexInsure’s risk management shields Oando’s investment, strengthening investor confidence in Africa’s oil industry.
- Oando’s revenue jumps 45% to $2.76 billion in 2024, fueled by higher crude production and global expansion.
Oando Plc, one of Nigeria’s leading oil companies led by Wale Tinubu—an oil mogul and nephew of President Bola Ahmed Tinubu—has secured a $650 million transaction with Nigerian Agip Oil Company. The deal is backed by AfrexInsure, the specialized insurance arm of the African Export-Import Bank (Afreximbank), providing critical risk management support.
The agreement strengthens Oando’s presence in Nigeria’s oil and gas sector and deepens its long-standing partnership with Afreximbank. By covering operational and geopolitical risks, AfrexInsure’s involvement boosts investor confidence in Africa’s energy industry.
Strategic growth and risk management
In a statement released Monday, Afreximbank highlighted the importance of the partnership in stabilizing and driving economic growth. The bank emphasized that AfrexInsure’s tailored insurance solutions are designed to reinforce Oando’s resilience and address sector-specific challenges.
This follows Oando’s $783 million acquisition of Nigerian Agip Oil Company in August 2024, cementing its position as a dominant force in Africa’s energy sector. AfrexInsure CEO Jonas Mushosho underscored the broader impact of the collaboration, saying:
“This partnership keeps premium flows within Africa, strengthens financial sustainability, and supports trade and industrialization across the continent.” He also stressed the need for accessible trade and specialty insurance to help manage economic volatility and attract more investment into Africa’s industrial and export sectors.
Oando’s expansion and vision
Oando Group CEO Wale Tinubu welcomed the partnership, acknowledging Afreximbank’s financial and advisory support for the company’s ambitious energy goals. “With our recent acquisition, having a strong risk management framework is critical. AfrexInsure’s expertise ensures our approach is both comprehensive and resilient,” Tinubu said.
Under his leadership, Oando has expanded across the energy value chain, from upstream exploration to midstream infrastructure and downstream operations. The company, formerly known as Unipetrol before its 2003 rebrand, operates through Ocean and Oil Development Partners, where Tinubu holds a controlling 66.67 percent stake alongside Omamofe Boyo.
Oando is also making strides in renewable energy, having signed an MoU for a 1.2GW solar project—the largest in Nigeria’s history.
Financial performance and global reach
Oando’s revenue jumped 45 percent in 2024 to $2.76 billion, driven by increased crude oil production, rising gas prices, and favorable exchange rates. The company is also expanding internationally, securing the top bid for Trinidad and Tobago’s Guaracara refinery lease as part of its refining ambitions.
AfrexInsure, a subsidiary of Afreximbank, provides insurance solutions for trade and investment across Africa, helping businesses mitigate risks and strengthen Africa’s trade ecosystem. With its backing, Oando is reinforcing its market position while managing risks, solidifying its role as a key player in Africa’s evolving energy landscape.
