Oil
Oando plans capital raise to manage $2 billion debt burden
Nigerian energy firm Oando is pursuing an intensive fundraising campaign to address substantial debt following its acquisition of Eni's local assets.
Key points
- Oando carried about $2 billion in total borrowings at the end of June 2026.
- The company plans a rights issue and a multi-instrument issuance program.
- First-half production rose following the 2024 acquisition of Nigerian Agip Oil Co.
What happened
Nigerian energy company Oando is working to restructure its balance sheet and raise fresh capital to manage approximately $2 billion in debt, according to recent financial accounts and reports by Billionaires.Africa and Nairametrics. Founder and group chief executive Wale Tinubu stated that the firm will execute an intensive fundraising program to optimise its capital structure.
The capital requirements follow Oando's acquisition of Nigerian Agip Oil Co. from Eni, which was completed in August 2024. That transaction doubled the company's interest in several Niger Delta oil mining leases and increased production. Output reached an average of 42,789 barrels of oil equivalent per day during the first half of 2026, according to company data cited by Billionaires.Africa.
Why it matters
Carrying significant borrowings has placed pressure on Oando's financial statements. Net finance costs for the first six months of 2026 exceeded operating profit, resulting in a pre-tax loss before tax credits turned the figure into a net profit. Research from the Edison Group, cited in the reports, indicated that interest payments absorbed more than half of the company's operating cash flow during the period.
To address these liabilities, management is pursuing a rights issue of approximately 4.42 billion new shares alongside a broader multi-instrument issuance program. Analysts from Renaissance Capital noted that a successful capital raise could help restore positive shareholders' equity, which stood at a negative position mid-year.
What comes next
Oando's proposed capital raising initiatives remain subject to regulatory approvals from authorities in Nigeria and South Africa. Additionally, shareholders voted to permit the board to explore secondary listings on other stock exchanges. Tinubu has outlined a medium-term production target of roughly 100,000 barrels of oil equivalent per day, supported by ongoing development drilling.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Crude benchmarks move budgets, currencies and inflation in producer and importer countries alike. For economies such as Nigeria, where fuels dominate exports, production and refining decisions move the whole economy.
9.5% of world merchandise exports were fuels in 2025Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
