Business
Afreximbank Provides $650m for Oando’s Acquisition of Nigerian Agip Oil Company
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.
Nigerian fintech company OPay has introduced new security features to improve the safety of its application.
The company unveiled the Emergency Lock and Safety PIN features to give customers better control over their funds and provide added protection against fraud and unauthorized transactions.
The Emergency Lock feature allows customers to instantly freeze their OPay account with a single tap whenever they sense a threat or believe their account may be at risk.
The newly launched Safety PIN introduces an additional layer of security, helping customers protect themselves in situations where they may be forced to make a transfer or payment against their will.
The Federal Government of Nigeria has spoken on the agriculture sector of the country and shared that, in its current state, it needs more capital as it cannot stand alone without it.
They stated that even more capital will be needed in order to transform the agricultural sector and improve food production in Nigeria.
“Relying solely on public capital will not suffice to finance the transformation of Nigeria’s agricultural sector. Similarly, private capital will not be mobilised at the necessary scale unless the associated risks are comprehensively understood, appropriately allocated, and effectively managed.”
It has been noted that there is now an increase in fuel all around Nigeria, from … to 1000 plus in fuel stations.
It was also noted that Dangote Petroleum Refinery increased the price to 1,175 per litre and diesel has been increased to 1,620 per litre.
This new spike in fuel increase has caused Nigerians to lament widely, wondering why this change happened all of a sudden.
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