Oando Secures $375M Boost as Afreximbank Upsizes Lending Facility
In a major financial milestone, African Export-Import Bank (Afreximbank) has officially upsized its Reserve-Based Lending (RBL) facility to $375 million for Oando Oil Limited, reaffirming confidence in the energy company’s long-term strategic vision.
A Fresh Injection of Capital
The move comes after Oando impressively reduced its previous $525 million facility to $100 million by 2024. This debt reduction created ample room for refinancing — and Afreximbank, with support from Mercuria Asia Resources PTE Limited, stepped in to expand the facility.
Fueling Ambitions for Growth
This increased financing will serve as a springboard for Oando’s ambitious plan to scale up its oil and gas production. The company is targeting 100,000 barrels of oil per day and 1.5 billion cubic feet of gas per day by the end of 2029. If achieved, this could significantly boost Nigeria’s national output and strengthen its presence in the global energy arena .
Economic and Social Impact
Beyond oil rigs and pipelines, the expansion is expected to contribute to job creation, infrastructure development, and technology transfer in Nigeria’s energy sector — a ripple effect that could spur broader economic growth across the country .
Leadership Speaks
Commenting on the development, Wale Tinubu, Group CEO of Oando PLC, emphasized the importance of the RBL upsizing:
“This is a strategic milestone that reinforces our commitment as operator of the Oando–NEPL Joint Venture. Our JV portfolio holds extensive reserves capable of generating over $11 billion in net cash flows throughout the asset lifecycle.”
He added that the working capital facility would be key to unlocking and monetizing the full value of these reserves, positioning Oando as a serious player in Africa’s upstream oil sector.
This upsizing isn’t just a financial update — it’s a bold signal that Oando is not only paying down debt but also scaling up for serious long-term growth in energy production and value creation. ⛽
In a major financial milestone, African Export-Import Bank (Afreximbank) has officially upsized its Reserve-Based Lending (RBL) facility to $375 million for Oando Oil Limited, reaffirming confidence in the energy company’s long-term strategic vision.
A Fresh Injection of Capital
The move comes after Oando impressively reduced its previous $525 million facility to $100 million by 2024. This debt reduction created ample room for refinancing — and Afreximbank, with support from Mercuria Asia Resources PTE Limited, stepped in to expand the facility.
Fueling Ambitions for Growth
This increased financing will serve as a springboard for Oando’s ambitious plan to scale up its oil and gas production. The company is targeting 100,000 barrels of oil per day and 1.5 billion cubic feet of gas per day by the end of 2029. If achieved, this could significantly boost Nigeria’s national output and strengthen its presence in the global energy arena .
Economic and Social Impact
Beyond oil rigs and pipelines, the expansion is expected to contribute to job creation, infrastructure development, and technology transfer in Nigeria’s energy sector — a ripple effect that could spur broader economic growth across the country .
Leadership Speaks
Commenting on the development, Wale Tinubu, Group CEO of Oando PLC, emphasized the importance of the RBL upsizing:
“This is a strategic milestone that reinforces our commitment as operator of the Oando–NEPL Joint Venture. Our JV portfolio holds extensive reserves capable of generating over $11 billion in net cash flows throughout the asset lifecycle.”
He added that the working capital facility would be key to unlocking and monetizing the full value of these reserves, positioning Oando as a serious player in Africa’s upstream oil sector.
This upsizing isn’t just a financial update — it’s a bold signal that Oando is not only paying down debt but also scaling up for serious long-term growth in energy production and value creation. ⛽