Nigerian oil magnate Wale Tinubu’s Oando announces participation in $3.3-billion facility

Feyisayo Ajayi -

Key Points:

  • Oando’s $550-million contribution, coupled with its return to the JSE trading floor, sends a strong back-on-track signal to investors and is poised for future growth.
  • The $3.3-billion Project Gazelle facility stands as the largest syndicated loan ever raised by Nigeria in the international market.
  • Wale Tinubu emphasizes ability to create value as an indigenous partner of choice in Project Gazelle as another win for Oando and Nigeria.

Oando Trading, a subsidiary of the leading integrated energy solutions provider, Oando Plc led by Nigerian oil magnate Wale Tinubu, has announced its successful contribution of $550 million in the recent closure of a $925-million financing deal for Project Gazelle. This follows Oando’s successful return to trading on the Johannesburg Stock Exchange (JSE) after a brief suspension related to financial reporting delays.

Project Gazelle is a $3.3-billion structured crude oil-backed forward-sale finance facility sponsored by the Nigerian National Petroleum Company Limited (NNPC Limited) and coordinated by the African Export-Import Bank (Afreximbank). It is Nigeria’s largest syndicated loan in the international market and one of Africa’s largest in recent years.

According to its recent update on the Johannesburg stock exchange, the facility which was sealed on May 17, 2024, highlights Oando’s robust capabilities and the collaborative strength of Afreximbank. Oando contributed $550 million to the $925 million financing, with other entities providing the remaining $375 million.

Oando’s strategic role-play in facilitating Project Gazelle

Oando played a pivotal role in Project Gazelle, Africa’s largest recent syndicated debt deal, committing $550 million to the $925 million tranche arranged by Afreximbank. This move underscored Oando’s financial strength and its role as a major driver of Nigeria’s economic growth. By securing substantial capital for this large-scale project, Oando aims to leverage the country’s oil resources to generate immediate funds and long-term revenue streams.

Wale Tinubu, Group Chief Executive of Oando Plc, announced the successful completion of the landmark facility, marking a significant win for both the company and Nigeria. “The transaction further reinforces Oando’s ability to create value and our status as the indigenous partner of choice in Nigeria,” Tinubu said.

Tinubu emphasized the broader implications of Project Gazelle, noting that the facility will be instrumental in realizing the Federal Government’s efforts to boost the country’s socioeconomic indices.

Oando under Wale Tinubu’s leadership

Wale Tinubu has transformed Oando into a multinational energy player with broad operations across the upstream, midstream, and downstream sectors. Tinubu maintains significant influence in Nigeria’s energy sector through his 66.67 percent stake in Oando, held jointly with Omamofe Boyo via Ocean and Oil Development Partners (OODP).

The company saw a surge in profit to N74.7 billion ($51 million) in 2023, with average production reaching 20,837 barrels per day. Revenue rose 71 percent year-on-year to N3.4 trillion ($2.3 billion), fueled by increased trading activity and a favorable exchange rate environment.

Oando’s participation in Project Gazelle signifies a positive turn for the company. With renewed investor confidence and a focus on its core upstream business, Oando appears well-positioned to navigate the competitive energy landscape and deliver value for its stakeholders.