Oando, a leading Nigerian oil and gas company, is seeking up to $750 million in 2025 to finance an ambitious drilling campaign aimed at tripling its production. Chief executive Wale Tinubu said the company plans to drill as many as 100 new wells, focusing on assets acquired from ConocoPhillips and Eni, as part of a broader shift following the exit of international oil companies from Nigerian onshore fields. Oando's average output in the 2025 fiscal year stood at just over 32,000 barrels of oil equivalent per day.
The push for funding comes amid shifting global energy dynamics triggered by the Iran war and the closure of the Strait of Hormuz, which has rerouted crude flows and increased demand for West African oil. Tinubu noted that Africa now appears more stable compared to conflict-affected regions, making it increasingly attractive to investors. European banks, once major financiers of African oil projects, have largely withdrawn due to climate-related pressures, forcing Oando to turn to alternative sources.
The company is now working with the African Export-Import Bank, the African Finance Corporation, and commodity traders such as Vitol, Trafigura, Glencore and Mercuria. Gulf-based banks and private equity funds are also stepping in. Tinubu stressed the need for deeper, long-term capital on the continent, advocating for greater use of domestic pools like pension funds. Oando has expanded into Angola and is assessing opportunities in Ghana and Ivory Coast.
Wale Tinubu's push for $750 million isn't just about drilling more wells—it's a bet that geopolitical chaos has handed Nigerian energy a rare window of opportunity. While international oil majors have been exiting Nigeria for years, Oando is positioning itself as the homegrown giant ready to fill the void, banking on the idea that instability in the Middle East will keep global buyers focused on West Africa.
The shift in investor appetite reveals a deeper truth: Nigeria's oil sector is no longer being judged solely on its internal challenges but in comparison to worse-off regions. With European capital fleeing African hydrocarbons over climate policies, the vacuum has been filled not by African institutions but by Gulf lenders, commodity traders, and private funds—actors less bound by ESG rhetoric. Tinubu's candid admission that Africa lacks long-term capital underscores a paradox: the continent's energy future is being financed by outsiders with transactional interests, not developmental ones.
For Nigerian workers, contractors, and host communities, this could mean more drilling activity and short-term jobs, but little structural change in how oil wealth is generated or shared. If funding flows, production may rise, yet the benefits will depend on whether local content rules are enforced and whether domestic institutions finally begin backing national energy projects.
This is not a one-off deal but part of a broader recalibration. As global powers rethink energy security, Nigerian oil is being reclassified—not as high-risk frontier, but as a strategic alternative. Oando's move signals that local firms can scale, but only if they navigate the fine line between serving foreign capital and building lasting national capacity.
