Table of Contents
Key Points
- Oando signed an MoU for a 1.2GW solar project, set to be Nigeria’s largest, as part of its clean energy expansion.
- Oando’s Wale Tinubu is expanding globally, securing a bid for Trinidad’s Guaracara refinery and acquiring Angola’s Block KON 13.
- Oando’s 2024 revenue surged 45% to N4.12 trillion, but high costs limited profit growth to 9%, reaching N65.5 billion.
Oando Plc, one of Nigeria’s leading oil companies, is making a bold move into renewable energy. Led by Wale Tinubu—an oil mogul and nephew of Nigerian President Bola Ahmed Tinubu—the company has signed a Memorandum of Understanding with the Rural Electrification Agency for a 1.2-gigawatt solar project. Once completed, it will be the largest solar power project in Nigeria.
Oando’s clean energy revolution begins
The project, expected to play a key role in Nigeria’s shift toward sustainable energy, will be executed by Oando Clean Energy, the renewable energy subsidiary of Oando Energy Resources. It marks a key step in Oando’s broader strategy to expand its clean energy footprint.
Ademola Ogunbanjo, CEO of Oando Clean Energy, highlighted the project’s groundbreaking features. “This is Africa’s first solar module assembly plant with a recycling line that will see old and dysfunctional solar panels repurposed into raw materials for various uses,” he said.
The first phase, a 600-megawatt solar rollout, is set for completion in 2026. The initiative aligns with Oando’s broader vision to expand solar photovoltaic infrastructure, boost local manufacturing, and improve energy access across Nigeria while supporting carbon capture and a just energy transition.
Oando expands energy footprint
Under Wale Tinubu, Oando has expanded aggressively across the energy sector, from upstream exploration to midstream and downstream operations.
The company, formerly known as Unipetrol before its rebrand in 2003, operates through Ocean and Oil Development Partners, a joint venture where Tinubu holds a controlling stake of 66.67 percent alongside Omamofe Boyo.
Beyond Nigeria, Oando is extending its footprint globally. Last month, the company was selected as the preferred bidder for the lease of the Guaracara refinery in Pointe-à-Pierre, Trinidad and Tobago—a major step in its push into the Caribbean refining market.
This follows its acquisition of Angola’s Block KON 13 and its $783 million takeover of Nigerian Agip Oil Company, strengthening its position as a major player in Africa’s energy industry.
Oando’s profit rises 9% on high costs
Financially, Oando’s revenue surged 45 percent in 2024, rising from N2.845 trillion ($1.9 billion) in 2023 to N4.122 trillion ($2.76 billion). This was driven by higher crude oil volumes, rising gas prices, and favorable exchange rates. However, soaring costs cut into profitability.
Direct production costs climbed to N3.84 trillion ($2.56 billion), administrative expenses increased to N402.7 billion ($269.5 million), and finance costs jumped to N232.1 billion ($155.3 million). As a result, profit for the period rose by just 9 percent, reaching N65.5 billion ($43.9 million), up from N60.3 billion ($40.3 million) in 2023.
