AfrexInsure, the speciality insurance subsidiary of the African Export-Import Bank (Afreximbank), has onboarded Oando Plc as a strategic partner to protect the bank’s investment in Oando’s operations in Nigeria through tailored insurance solutions.
This was disclosed in a statement released on Monday by the APO Group on behalf of Afreximbank. The partnership reinforces Afreximbank’s role in financing Oando’s strategic initiatives in Nigeria’s oil and gas sector.
In August 2024, Afreximbank facilitated a $650m financing deal for Oando’s acquisition of Nigerian Agip Oil Company assets. Additionally, in June 2024, Oando Trading, a subsidiary of Oando, participated in Project Gazelle, a $3.3bn structured crude oil-backed finance facility sponsored by the Nigerian National Petroleum Company Limited (NNPC). Oando contributed $550m to a $925m accordion facility arranged by Afreximbank.
The Chief Executive Officer of AfrexInsure, Jonas Mushosho, stated that the collaboration between Oando and AfrexInsure would enhance local content in Africa’s oil and gas sector. He added that the partnership aimed to promote economic empowerment and sustainable development of Africa’s natural resources. Mushosho also emphasized that strengthening Africa’s insurance sector would help retain premium flows within the continent and contribute to its financial sustainability.
Mushosho highlighted that multinational companies operating in Africa face high levels of risk in an uncertain environment. He explained that the availability of affordable trade and trade-related insurance solutions could mitigate these risks and encourage companies to invest in industrialisation and export development.
He added that AfrexInsure’s role in providing specialised insurance services was crucial in boosting investor confidence in Africa’s trade and development. He stated that by leveraging African insurance securities, premiums raised within the continent would be retained and reinvested to support economic growth.
The Group Chief Executive Officer of Oando, Wale Tinubu, acknowledged Afreximbank’s long-standing support for Oando’s vision for Africa’s energy sector. He said the bank had provided essential financing, guidance, and advisory services to Oando. Tinubu noted that following Oando’s recent acquisition, a well-structured risk management approach was crucial. He expressed confidence that AfrexInsure would provide the necessary oversight to ensure the adequacy and effectiveness of Oando’s risk management strategy.
Meanwhile, a report from Trinidad and Tobago indicated that Oando Plc, which recently emerged as the preferred bidder for the lease of the Pointe-a-Pierre refinery, has been facing financial difficulties. According to the report, Oando’s unaudited financial statements for the period ending December 31, 2024, showed that the company was in “accounting insolvency.” The report disclosed that Oando’s total liabilities stood at N7.8tn, while total assets were N7.5tn, with borrowings amounting to N2.8tn.
The report further stated that restarting the refinery acquired by Oando would require at least $1bn. Sources close to the bidding process reportedly questioned why Oando was selected as the government’s preferred bidder over the indigenous CRO Consortium, which was its main competitor.
Oando defeated Trinidad’s CRO Consortium and INCA Energy, an American company, to win the refinery lease. Trinidad and Tobago’s Minister of Energy, Stuart Young, explained that the government’s decision was based on Oando’s strong financial track record. He cited Oando’s $1.5bn acquisition of ConocoPhillips’ assets in Nigeria in 2014 as an example of the company’s financial capability.
