Wale Tinubu, Nigerian oil billionaire and nephew of Nigerian President Bola Ahmed Tinubu, has witnessed a substantial decline in the market value of his stake in Oando Plc, one of Nigeria’s leading energy companies.
This decline follows a $40-million increase in Tinubu’s wealth, driven by a surge in Oando’s share price to an eight-year-high on the Nigerian Exchange.
According to data tracked by Billionaires.Africa, Tinubu’s indirect stake in Oando has declined by a staggering N22.35 billion ($28.9 million) over the past 21 days. This sharp decline in value can be attributed to profit-booking activities by investors who had initially benefitted from the company’s soaring share price.
Tinubu’s stake in Oando is held indirectly through his ownership of 66.67 percent of Ocean and Oil Development Partners (OODP). This investment firm, co-owned by Tinubu and Omamofe Boyo, holds a significant portion of Oando’s shares, totaling 7,131,736,637 ordinary shares.
The recent catalyst for Oando’s soaring share price was the company’s announcement of its intention to acquire 100 percent of the Italian-owned shares of Nigerian Agip Oil Company Limited (NAOC Ltd).
This announcement prompted a swift increase in Oando’s share price on the Nigerian Exchange, surging from N5.50 ($0.007) on Sept. 1 to an eight-year high of N14.60 ($0.0189) on Sept. 20. This bullish run brought substantial gains to Tinubu and Omamofe Boyo.
In the wake of these gains, a wave of profit-booking activities among retail investors has caused Oando’s shares to plummet by 32.2 percent within the past 21 days. At the time of drafting this report, Oando’s share price had fallen to N9.9 ($0.0128), reflecting a significant retraction.
As a result of this notable decrease in Oando’s share price on the Nigerian Exchange, the market value of Tinubu’s stake in the company has declined by N22.35 billion ($28.9 million) over the past 21 days. This decline has reduced his stake from N69.42 billion ($89.7 million) on September 20 to N47.08 million ($60.8 million).
