The African Export-Import Bank (Afreximbank) has successfully completed the upsizing of its reserve-based lending (RBL) facility for Oando Oil Limited to $375 million, a strategic move expected to unlock fresh growth opportunities in Nigeria’s oil and gas sector.
Oando had earlier reduced its initial $525 million loan to $100 million by 2024, creating substantial headroom for refinancing. The fresh capital injection, led by Afreximbank and backed by Mercuria Asia Resources PTE Limited (Mercuria), will significantly boost the company’s liquidity and operational capacity.
The development marks a major milestone in Oando’s capital management strategy and aligns with its target to ramp up production to 100,000 barrels of oil per day and 1.5 billion cubic feet of gas per day by 2029.
Driving Nigeria’s Energy Ambition
Afreximbank, in a statement, highlighted that the financing will not only support Oando’s production goals but also foster broader national benefits, including job creation, infrastructure development, and the advancement of oil and gas technology.
The deal positions Nigeria to strengthen its global energy footprint at a time when the country is seeking to stabilise and expand output amid fluctuating global oil dynamics.
Tinubu: A Strategic Milestone
Commenting on the development, Wale Tinubu, Group Chief Executive of Oando PLC and Executive Chairman of Oando Energy Resources, described the facility as pivotal to unlocking the full value of the Oando–NEPL Joint Venture.
“We are pleased to have completed the upsizing of our RBL facility, a strategic milestone that reinforces our commitment as Operator of the Oando-NEPL JV to maximising the value of our expanded asset portfolio,” Tinubu said.
He added that the JV’s extensive reserves are capable of generating over $11 billion in net cash flows to Oando over the life of the assets.
“This working capital facility is a critical enabler towards efficiently extracting and monetising these resources,” he stated.
Expansion and Economic Impact
With the upsized facility, Oando is well-positioned to meet its medium-term production targets while contributing to Nigeria’s foreign exchange earnings and energy security.
Industry watchers say the move is also a strong signal of renewed investor confidence in Nigeria’s upstream oil sector, especially as indigenous operators continue to scale up operations amid divestments by international oil companies.
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