The African Export-Import Bank (Afreximbank) has announced its role in providing a substantial $650 million in financing for Oando’s acquisition of a full 100% stake in the Nigerian Agip Oil Company Limited (NAOC).

This financial backing was crucial in enabling Oando, one of Nigeria’s leading energy firms, to complete the acquisition.

In a statement released on Friday, Afreximbank detailed the breakdown of the funding, which consisted of a senior $500 million loan and a junior $150 million reserve-based lending facility.

These funds were secured to support Oando Petroleum and Natural Gas Company Limited in purchasing the 20% participating interest held by NAOC in the NEPL/NAOC/Oando Joint Venture, a key asset in Nigeria’s energy sector.

Oando had earlier confirmed the successful completion of the acquisition in a statement released on Thursday, marking it as a significant achievement for the company.

“Today represents a historic milestone for Oando Plc, as we officially announce the completion of our agreement with Eni for the acquisition of 100% of the shares in Nigerian Agip Oil Company Limited,” the statement read.

The acquisition solidifies Oando’s position in Nigeria’s oil and gas industry, granting the company more control over vital assets in the NEPL/NAOC/Oando Joint Venture.

Afreximbank’s Executive Vice President for the Global Trade Bank, Haytham Elmaayergi, highlighted the importance of the bank’s involvement in the deal.

He emphasized that the funding represents a key element of Afreximbank’s broader strategy to promote local participation in Africa’s oil and gas sector.

“By facilitating the acquisition of major energy assets by an indigenous company like Oando, the bank is contributing to economic empowerment, fostering regional trade, and supporting the sustainable development of Africa’s natural resources,” Elmaayergi stated.

The deal reflects a growing trend towards strengthening local ownership of critical energy assets within Africa, which aligns with long-term goals of boosting economic growth, enhancing local expertise, and promoting sustainable energy development across the continent.

Oando’s acquisition of NAOC is expected to have significant implications for both Nigeria’s oil production capacity and the overall landscape of Africa’s energy industry.