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Nigerian President’s nephew Wale Tinubu’s Oando stake surpasses $120 million

President Bola Ahmed Tinubu and Wale Tinubu
President Bola Ahmed Tinubu and Wale Tinubu

Table of Contents


Key Points:


  • Wale Tinubu’s stake in Oando Plc soared to $120.2 million, up $60.2 million since May 2023 due to a 589.5% rise in share price.
  • Oando’s market capitalization reached $315 million after acquiring NAOC Ltd and plans to double its oil output to 100,000 barrels per day by 2029.
  • The company reported a profit of $51 million for 2023, reversing a $54.5 million loss from the previous year, despite currency devaluation impacts.

Nigerian oil magnate Wale Tinubu has seen his wealth rise sharply since his uncle, Bola Ahmed Tinubu, became Nigeria’s president in May 2023. As Group CEO of Oando Plc, Tinubu’s stake in the leading energy group has surged to over $120 million, driven by a significant increase in share price. This growth comes despite earlier setbacks, including a suspension from the Johannesburg Stock Exchange (JSE) and the devaluation of the Nigerian naira.

Market movements and wealth growth

Wale Tinubu holds an indirect 38.34 percent stake in Oando Plc, amounting to 4.75 billion shares. Since May 29, 2023, when Bola Ahmed Tinubu assumed the presidency, Wale Tinubu’s stake in Oando has risen by $60.2 million, pushing the total value to $120.2 million. This increase is notable despite Nigeria’s economic headwinds, particularly the significant devaluation of the naira, which has heavily impacted the valuation of naira-denominated assets.

Oando’s share price on the Nigerian Exchange has appreciated by 589.5 percent in local currency terms, climbing from N5.83 to N40.2 per share. Even after adjusting for currency depreciation, this translates to a 100.15 percent increase, from $0.126 to $0.253, resulting in a market capitalization of approximately $315 million for the indigenous energy group.

Strategic moves and corporate resilience

The gains in Wale Tinubu’s wealth are attributed not to any direct influence from the presidency but rather to his adept leadership of Oando. The company, which specializes in integrated energy solutions, making it one of the nation’s leading indigenous energy groups, faced challenges earlier this year when it was suspended from the JSE for missing the deadline to publish its 2022 audited results and 2023 interim results. However, Oando’s fortunes have reversed, thanks to strategic acquisitions and successful corporate maneuvers.

Last month, Oando under the astute leadership of Wale Tinubu finalized a significant deal to acquire 100 percent of Nigerian Agip Oil Company Limited (NAOC Ltd) from the Italian multinational oil and gas company Eni S.p.A. This acquisition expanded Oando’s stake in four oil mining leases—OMLs 60, 61, 62, and 63—from 20 percent to 40 percent.

With the completion of this landmark deal, Oando has outlined ambitious plans to double its oil equivalent output from 50,000 barrels per day to 100,000 barrels daily by 2029, through new drilling operations and security enhancements. Its recent acquisition, which included full ownership of all assets under the NEPL/NAOC/OOL Joint Venture, has significantly boosted investor confidence, leading to a surge in Oando’s share price and market capitalization.

Financial performance and market sentiment

Oando’s resurgence was further validated when it regained its listing on the JSE following the March 29 suspension. The company’s financial performance has been equally impressive, reporting a profit of N74.7 billion ($51 million) for the 2023 fiscal year. This result exceeded market expectations and also reversed a loss of N81.2 billion ($54.5 million) from 2022.

According to the company’s recently published unaudited financial results, Oando’s revenue surged by 71 percent, from N2 trillion ($1.34 billion) in 2022 to N3.4 trillion ($2.3 billion) in 2023, driven by increased trading activity and favorable exchange rate translations, despite a decline in oil, gas, and natural gas liquids (NGL) production volumes and prices.

Political ties and media speculation

Wale Tinubu’s financial successes have been accompanied by media scrutiny, particularly regarding his uncle’s presidency. Earlier this year, reports emerged alleging that President Bola Ahmed Tinubu facilitated deals in favor of Oando, including brokering an arrangement through Gilbert Chagoury, a controversial Lebanese-Nigerian billionaire, to aid Oando in acquiring NAOC and other assets from Eni.

Additional reports suggested that the President intervened to withdraw existing cases against Shell and Eni in international tribunals, allowing both firms to reclaim control of the contentious OPL 245 oil block without fresh dues to Nigeria. These reports, while unverified, have cast a spotlight on the intersection of business and politics in Nigeria’s energy sector.

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