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  NAOC Acquisition: A Transformative Moment in the History of Nigeria’s Energy Sector- Experts

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In a landmark move that has sent shockwaves through the Nigerian energy sector, Oando Plc, a leading indigenous energy solutions provider, has completed the acquisition of 100% of the shareholding interest in the Nigerian Agip Oil Company (NAOC) from the Italian energy giant, Eni. This transformative deal, valued at a staggering $783 million, not only solidifies Oando’s position as a major player in the industry but also heralds a new era of empowerment for indigenous energy companies in Nigeria.

 

The acquisition, which has been in the works for the past decade, is a testament to the visionary leadership and unwavering determination of Oando’s Group Chief Executive, Jubril Adewale Tinubu, CON. Tinubu, a serial entrepreneur and a driving force behind Nigeria’s energy revolution, has once again proven his ability to identify strategic opportunities and execute them with precision.

 

“Today’s announcement is the culmination of 10 years of hard work, resilience, and an unwavering belief that we would realize our ambition,” an elated Tinubu remarked. “It is a win, not just for Oando, but for every indigenous energy player as we take our destiny in our hands.”

 

This landmark transaction marks a significant shift in the Nigerian energy landscape, as it paves the way for indigenous companies to play a more prominent role in the upstream sector. Tinubu’s visionary leadership and strategic acumen have been widely praised by industry analysts and commentators.

 

“His visionary mindset and astute business acumen have allowed him to navigate the complexities of the Nigerian market and foster collaborations with leading international companies,” said Ms. Taiwo Alegeh, a foremost oil and gas analyst. “This not only speaks to his own success but also showcases the immense potential within Nigeria’s business landscape.”

 

The acquisition of NAOC, a company that has been a dominant player in Nigeria’s onshore oil and gas exploration and production, as well as power generation, is a game-changer for Oando. The deal will double the company’s oil equivalent output from 25,000 barrels per day to 50,000 barrels per day, significantly boosting its production and reserves.

 

“The transaction increases our current participating interests in Oil Mining Licences (OMLs) 60, 61, 62, and 63 from 20 per cent to 40 per cent and increases our ownership stake in the Joint Venture (JV) assets and infrastructure,” Oando stated in its announcement. This includes 40 discovered oil and gas fields, of which 24 are currently producing, as well as approximately 40 identified prospects and leads.

 

The acquisition also involves 12 production stations, approximately 1,490km of pipelines, three gas processing plants, the Brass River Oil Terminal, and the Kwale-Okpai phases 1 & 2 power plants, with a total nameplate capacity of 960MW, and associated infrastructure. This comprehensive portfolio of assets will undoubtedly strengthen Oando’s position in the Nigerian energy landscape.

 

Seun Ajayi, another industry analyst, praised Tinubu’s status as a world-class businessman, highlighting his visionary leadership and strategic acquisitions. “This latest acquisition by Oando is a testament to Tinubu’s ability to identify and seize opportunities that can transform the industry,” Ajayi said.

 

The acquisition comes at a pivotal moment in the Nigerian energy sector, as international oil companies (IOCs) have been pursuing divestment strategies, focusing on exiting shallow water and onshore assets while maintaining interests in the deep waters. This trend, driven by factors such as declining production and increasing operational risks, has created a void that indigenous companies like Oando are now poised to fill.

 

“This is a new dawn for the Nigerian energy sector, and we are confident that indigenous companies will play a pivotal role in this next phase of the nation’s upstream evolution,” Tinubu stated. “With our assumption of the role of operator, our immediate focus is on optimizing the assets’ immense potential in contributing to our strategic objectives, whilst complementing the nation’s plan to boost production outputs.”

 

The significance of this acquisition cannot be overstated, as it represents a transformative shift in the balance of power within the Nigerian energy industry. For decades, IOCs have dominated the upstream sector, with indigenous companies playing a relatively small role. However, this transaction marks a watershed moment, where Oando has emerged as a formidable player, poised to lead and operate oil and gas assets previously controlled by the international giants.

 

“It is rather uncanny that this acquisition comes exactly a decade after Oando’s landmark $1.8 billion acquisition of ConocoPhillips’ Nigeria interest, a transaction which incidentally made the company a Joint Venture (JV) partner on the asset alongside NNPC E&P Ltd (NEPL) and NAOC,” Oando noted in its announcement. “The ConocoPhillips transaction propelled Oando’s production from approximately 4,500 barrels of oil per day to 50,000 barrels of oil per day at the time.”

 

This strategic move by Oando not only solidifies its position as a leading indigenous energy player but also sends a strong message to the global energy community. It demonstrates the capability and ambition of Nigerian companies to compete on an international stage, challenging the traditional dominance of IOCs and paving the way for a more diversified and sustainable energy landscape.

 

Beyond the immediate impact on Oando’s operations, this acquisition is expected to have far-reaching implications for the Nigerian economy. The empowerment of indigenous energy companies like Oando aligns seamlessly with the Renewed Hope Agenda of President Bola Ahmed Tinubu, which emphasizes the importance of fostering local content development and promoting the participation of Nigerian businesses in the energy sector.

 

“Looking to the future, we will continue to pursue strategic opportunities that provide enhanced growth and value creation for our stakeholders, particularly in the clean energy, agri-feedstock sector, as well as infrastructure and mining,” Tinubu said, highlighting Oando’s commitment to diversifying its portfolio and contributing to the nation’s broader economic development.

 

The acquisition of NAOC is also expected to have a positive impact on Nigeria’s energy security and production. With Oando’s expertise and focus on optimizing the assets’ potential, the country’s oil and gas output is poised to receive a significant boost, helping to address the ongoing challenges of meeting domestic demand and maximizing export opportunities.

 

Eni, the Italian energy giant that previously owned NAOC, has also expressed its commitment to Nigeria’s economic diversification. The company has announced plans to assess the potential for producing agri-feedstock for Enilive bio-refineries and exploring various nature- and technology-based projects, such as clean cooking initiatives, to offset emissions.

 

“Eni remains committed to the country through investments in deepwater projects and Nigeria LNG,” the company stated, underscoring its continued involvement in the Nigerian energy sector, even as it divests from the onshore and shallow water assets.

 

The successful completion of this landmark acquisition has generated a wave of excitement and optimism within the Nigerian energy industry. Analysts and industry experts have unanimously praised Oando’s strategic vision and execution capabilities, recognizing the transformative potential of this transaction.

 

“This achievement will allow Eni to complete the transaction for the sale of Nigerian Agip Oil Company Ltd (NAOC), its wholly-owned subsidiary focused on onshore oil and gas exploration and production, as well as power generation in Nigeria, to Oando PLC, Nigeria’s leading national energy solutions provider, listed on both the Nigerian and Johannesburg Stock Exchanges,” Eni stated in its announcement.

 

The acquisition of NAOC is a testament to Oando’s resilience, adaptability, and unwavering commitment to driving the growth and development of the Nigerian energy sector. It is a significant milestone that will not only reshape the company’s trajectory but also redefine the dynamics of the industry as a whole.

 

As Oando embarks on this new chapter, the company’s leadership is confident that it will continue to identify and capitalize on strategic opportunities that create enhanced growth and value for its stakeholders. The diversification into clean energy, agri-feedstock, infrastructure, and mining sectors further underscores Oando’s vision to be a comprehensive energy solutions provider, contributing to the nation’s overall economic progress.

 

The successful acquisition of NAOC by Oando Plc marks a transformative moment in the history of Nigeria’s energy industry. It symbolizes the rise of indigenous companies and their ability to compete on a global scale, challenging the long-standing dominance of international oil giants. This milestone achievement not only strengthens Oando’s position but also paves the way for a more vibrant, diversified, and sustainable energy landscape in Nigeria, ultimately benefiting the nation’s economic development and energy security.

 

 

 

The acquisition of the Nigerian Agip Oil Company (NAOC) by Oando Plc has not only transformed the fortunes of the indigenous energy company but has also shone a spotlight on the untapped potential within Nigeria’s oil and gas sector. As the industry grapples with declining production and operational challenges, Oando’s bold move has proven that Nigerian companies are poised to rejuvenate the industry and drive its future growth.

 

According to Dr. Ainojie Irune, the Executive Director of Oando Plc and Chief Operating Officer of Oando Energy Resources, the successful completion of this landmark transaction has demonstrated the strength and capabilities of indigenous players in the sector. “If you look at the local companies that have stepped forward… there’s no doubt that indigenous capacity exists,” Irune stated in an interview with S&P Global Commodity Insights.

 

The dire state of Nigeria’s oil production, which has fallen well below its capacity of over 2 million barrels per day (bpd) of crude and condensate, has been a source of concern for industry stakeholders. Factors such as rampant oil theft, sabotage in the restive Niger Delta, underinvestment, and sluggish exploration activity have all contributed to the country’s production woes. In May 2024, Nigeria’s crude and condensate production stood at a mere 1.47 million bpd, according to the Platts OPEC Survey from S&P Global Commodity Insights.

 

This challenging landscape presents a unique opportunity for indigenous companies like Oando to showcase their ability to revive the sector and unlock its full potential. With the successful acquisition of NAOC, Oando has not only doubled its oil equivalent output but has also gained a significant stake in the joint venture assets and infrastructure that include 40 discovered oil and gas fields, 24 of which are currently producing.

 

Irune believes that the empowerment of indigenous players can be a game-changer in addressing the issues plaguing the industry. “My personal opinion is that having indigenous players will definitely improve issues around fairness and this need to engage in sabotage and theft. Collectively, independents can build a more cohesive and collaborative oil sector,” he said.

 

The acquisition of NAOC has set an industry precedent, and Oando anticipates that this landmark deal will pave the way for further asset divestments by international oil companies (IOCs) to indigenous players. These divestment deals are expected to bring in fresh capital, technology, and expertise, which will help to increase oil production, reduce carbon emissions, and create new opportunities for Nigerians in the industry.

 

The distinct advantages that indigenous companies possess, such as local knowledge, operational flexibility, and stronger community relations, offer unparalleled opportunities to optimize value creation within the sector. When coupled with global best practices, this advantage can unlock new avenues for growth and innovation.

 

The acquisition of NAOC by Oando has been widely celebrated as a major victory for the company’s Group Chief Executive, Jubril Adewale Tinubu, CON. Many in the business world, particularly the oil and gas industry in Nigeria, have described Tinubu as a “soldier and champion,” a strategist, and a serial winner, whose many stories of happy endings have confounded even his harshest critics.

 

Tinubu’s feats as a hugely successful player in the dangerous and turbulent oil and gas sector have earned him the admiration of many. His audacity to face challenges where others have fallen by the wayside has made him a role model for aspiring entrepreneurs and business leaders in Nigeria.

 

The acquisition of NAOC not only speaks to Oando’s own success but also showcases the immense potential and possibilities that lie within Nigeria’s business landscape for Nigerians. This landmark deal has demonstrated that indigenous companies can compete on a global scale and challenge the long-standing dominance of international oil giants.

 

As Oando looks to the future, the company is poised to continue pursuing strategic opportunities that provide enhanced growth and value creation for its stakeholders. The diversification into clean energy, agri-feedstock, infrastructure, and mining sectors further underscores Oando’s vision to be a comprehensive energy solutions provider, contributing to the nation’s overall economic progress.

 

Tinubu’s visionary leadership and strategic acumen have been widely praised by industry analysts and commentators. “His visionary mindset and astute business acumen have allowed him to navigate the complexities of the Nigerian market and foster collaborations with leading international companies,” said Ms. Taiwo Alegeh, a foremost oil and gas analyst. “This not only speaks to his own success but also showcases the immense potential within Nigeria’s business landscape.”

 

The successful completion of the NAOC acquisition has generated a wave of excitement and optimism within the Nigerian energy industry. Analysts and industry experts have unanimously praised Oando’s strategic vision and execution capabilities, recognizing the transformative potential of this transaction.

 

Femi Ojo, another industry analyst, highlighted Tinubu’s status as a world-class businessman, lauding his visionary leadership and strategic acquisitions. “This latest acquisition by Oando is a testament to Tinubu’s ability to identify and seize opportunities that can transform the industry,” Ojo said.

 

The significance of this acquisition cannot be overstated, as it represents a transformative shift in the balance of power within the Nigerian energy industry. For decades, IOCs have dominated the upstream sector, with indigenous companies playing a relatively small role. However, this transaction marks a watershed moment, where Oando has emerged as a formidable player, poised to lead and operate oil and gas assets previously controlled by the international giants.

 

The empowerment of indigenous energy companies like Oando aligns seamlessly with the Renewed Hope Agenda of President Bola Ahmed Tinubu, which emphasizes the importance of fostering local content development and promoting the participation of Nigerian businesses in the energy sector. This acquisition is expected to have far-reaching implications for the Nigerian economy, contributing to the nation’s energy security, production, and overall economic development.

 

Eni, the Italian energy giant that previously owned NAOC, has also expressed its commitment to Nigeria’s economic diversification. The company has announced plans to assess the potential for producing agri-feedstock for Enilive bio-refineries and exploring various nature- and technology-based projects, such as clean cooking initiatives, to offset emissions.

 

“Eni remains committed to the country through investments in deepwater projects and Nigeria LNG,” the company stated, underscoring its continued involvement in the Nigerian energy sector, even as it divests from the onshore and shallow water assets.

 

The successful completion of this landmark acquisition has generated a wave of excitement and optimism within the Nigerian energy industry. Analysts and industry experts have unanimously praised Oando’s strategic vision and execution capabilities, recognizing the transformative potential of this transaction.

 

“This achievement will allow Eni to complete the transaction for the sale of Nigerian Agip Oil Company Ltd (NAOC), its wholly-owned subsidiary focused on onshore oil and gas exploration and production, as well as power generation in Nigeria, to Oando PLC, Nigeria’s leading national energy solutions provider, listed on both the Nigerian and Johannesburg Stock Exchanges,” Eni stated in its announcement.

 

The acquisition of NAOC is a testament to Oando’s resilience, adaptability, and unwavering commitment to driving the growth and development of the Nigerian energy sector. It is a significant milestone that will not only reshape the company’s trajectory but also redefine the dynamics of the industry as a whole.

 

As Oando embarks on this new chapter, the company’s leadership is confident that it will continue to identify and capitalize on strategic opportunities that create enhanced growth and value for its stakeholders. The diversification into clean energy, agri-feedstock, infrastructure, and mining sectors further underscores Oando’s vision to be a comprehensive energy solutions provider, contributing to the nation’s overall economic progress.

 

The successful acquisition of NAOC by Oando Plc marks a transformative moment in the history of Nigeria’s energy industry. It symbolizes the rise of indigenous companies and their ability to compete on a global scale, challenging the long-standing dominance of international oil giants. This milestone achievement not only strengthens Oando’s position but also paves the way for a more vibrant, diversified, and sustainable energy landscape in Nigeria, ultimately benefiting the nation’s economic development and energy security.

 

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Oando set to Redeem Promise to Shareholders

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In its  commitment to enhancing shareholders value Oando  has concluded plans to  reward them  by giving them an incredible 1.28 billion additional shares in the form of stock dividend. This means shareholders will get more shares added to their investment portfolio at no extra cost. The sheer size of the offering, with 1.28 billion shares distributed, makes it the biggest shareholder reward in Oando’s history.

This decision follows the approval of shareholders at the Company’s 45th Annual General Meeting (AGM) held on December 17, 2024, authorising “the Company may cause shares received pursuant to sub-resolution (b) above, and/or their cash equivalent to be distributed to shareholders of record at date(s) as may be determined by the Board of Directors, from time to time, on a pro-rata basis.”

Subsequently, the Board of Directors resolved to distribute the shares in two tranches in a meeting held on January 30, 2025. The total worth of shares valued at 97,562,157,676, based on Oando PLC’s closing share price of 76 as of January 30, 2025, will be distributed to its shareholders beginning with 641,856,301 ordinary shares at the close of business on February 14, 2025, and 641,856,300 ordinary shares at the close of business on June 30, 2025.

Stock dividends are considered more superior to cash dividends as shareholders are being given the choice of either keeping their return on investment or turning it to cash whenever they want; with a cash dividend, that option is unavailable.  In this instance Oando shareholders are getting a return on investment of over 10%. The increase in shares also means an increase in potential future dividends, as the more shares a shareholder owns, the more dividends they can potentially receive.

Furthermore, instead of paying cash, which could weaken the company’s future financial position, Oando is preserving value and ensuring shareholders benefit from future growth through this scheme. By distributing shares, the company can maintain a strong financial position, which is crucial for future growth and investment opportunities.

This positive news for Oando shareholders directly increases minority shareholders’ ownership stakes by one (1) new ordinary share of 50 kobo each for every twelve (12) existing ordinary shares of 50 kobo held by the shareholders without dilution.

This news comes in the wake of Oando’s robust performance in 2024, bolstered by its $783Million acquisition of Nigerian Agip Oil Company (NAOC) in August 2024, which led to a bullish increase of over 500% in its share price. The acquisition also significantly impacted the company’s FY 2024 financial results, resulting in a 45% surge in revenue to N4.1Trillion. This strong financial performance should instil confidence in shareholders about the company’s prospects.

Building on the track record of 2024, Oando announced the award of Block KON 13 in Angola’s Onshore Kwanza Basin in January 2025. The future remains hopeful for shareholders, as the Group Chief Executive (GCE), Wale Tinubu CON, mentioned in a recent statement that the company will prioritise cost optimization, operational efficiency, streamlining processes, enhancing procurement, and leveraging technology to improve productivity across operations.

By distributing the shares in two phases, Oando ensures that its stock price remains strong and stable, avoiding any sudden market drops.

 

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Audullahi Saheed Mosadoluwa: Visionary Leader Redefining Real Estate, Community Development

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Hon. (Dr.) Audullahi Saheed Mosadoluwa, fondly known as “Mr. Ibile,” embodies the spirit of innovation, resilience, and purpose. His journey from a young entrepreneur to one of Nigeria’s most revered real estate developers is an inspiring testament to visionary leadership and a deep commitment to societal transformation.
Born into an entrepreneurial family, Mosadoluwa developed a sharp business acumen at an early age, a foundation that set the stage for his remarkable career. His ambition and forward-thinking approach eventually led him to establish Harmony Gardens and Estate Development Limited, a company now synonymous with excellence and innovation in Nigeria’s real estate sector.
Under his guidance, Harmony Gardens has flourished into a household name, delivering projects that cater to both luxury seekers and everyday Nigerians. One of the company’s standout developments, the Lekki Aviation Town Estate, is a masterfully designed residential hub strategically located near the upcoming Lekki-Epe International Airport. Spanning over 1,400 hectares, this ambitious project offers state-of-the-art amenities and positions Harmony Gardens as a key player in addressing Nigeria’s housing deficit.
In addition to Lekki Aviation Town, Harmony Gardens boasts other groundbreaking projects such as HarmonyVille Estate, CrestView Estate, and Granville by Harmony. Each of these developments is a testament to Mosadoluwa’s dedication to creating inclusive, sustainable communities that elevate the living standards of Nigerians.
Recently, Mosadoluwa expanded his influence by launching Ibile Holdings Global Limited, a new venture focused on optimizing construction practices and property management in Nigeria. This move underscores his commitment to diversifying the economy, creating jobs, and setting new benchmarks in quality and efficiency.
Beyond his business accomplishments, Mosadoluwa is a devoted philanthropist. He has funded scholarships for underprivileged students, supported affordable housing initiatives for low-income families, and spearheaded free healthcare outreach programs in underserved communities. His generosity and advocacy for equity have touched countless lives, solidifying his reputation as a compassionate leader who prioritizes people over profit.
Mosadoluwa’s contributions have not gone unnoticed. He has received numerous accolades, including an Honorary Doctorate from the Chartered Institute of Public Resources Management & Politics (CIPRMP), Ghana, for his efforts in democracy, education, and affordable housing. His leadership and advocacy have also earned him the Outstanding Real Estate Leader Award and the Pan-African Housing Leadership Award.
While his journey has not been without challenges, including allegations of land disputes that he has consistently addressed through legal channels, Mosadoluwa remains steadfast in his mission to operate transparently and uphold ethical standards in the real estate industry.
Looking ahead, Mosadoluwa envisions a Nigeria where housing is accessible to all. With ambitious plans to build over 750,000 affordable homes by 2030 and attract foreign investments into the country’s housing sector, he is committed to driving sustainable development and economic growth.
Hon. (Dr.) Audullahi Saheed Mosadoluwa is more than a businessman—he is a visionary leader, a philanthropist, and a symbol of hope for countless Nigerians. Through his groundbreaking projects, unwavering dedication to ethical practices, and relentless pursuit of excellence, he continues to inspire and transform lives across the nation.
-Written by Sunday Adebayo

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Oil Tycoon, Wale Tinubu, Begins the New Year with Positive Momentum

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Oil tycoon and highflying businessman, Jubril Adewale Tinubu, has started the year 2025 on a very good and brighter note as he has just led Oando to secure a major oil block in Angola.

The  integrated energy solutions provider this week secured a major win by emerging as the operator of Angola’s Kwanza Basin Block KON 13.

This milestone marks a significant step in the company’s efforts to increase its oil production capacity to 100,000 barrels per day as part of its broader global expansion plans.

Over the weekend, the National Agency for Petroleum, Gas and Biofuels (ANPG), Angola’s upstream petroleum regulator, announced the results of the Limited Public Tender for Block KON 13, located in the Kwanza Onshore Basin.

The tender process began on May 24, 2024, with bidding held on September 3, 2024.

According to ANPG, Oando Energy has been designated the operator with a 45 percent stake in the block.

An additional 10 percent interest remains available for non-operating companies, to be awarded through a restricted competition involving unsuccessful bidders from the operator selection round.

The Angolan regulator stated that the bid process adhered to the requirements outlined in Presidential Decree No. 86/18, which governs criteria for financial and technical capacity for operators and financial capability for non-operators.

Oando’s success in Angola reflects its decade-long ambition to establish a presence in the country’s hydrocarbon sector.

In 2014, Tinubu revealed that Oando had signed joint ventures in Angola and Mozambique. However, financial challenges over the years cast doubt on the company’s ability to sustain its pan-African vision.

That narrative shifted with Oando’s recent acquisition of 100 percent ownership of Nigerian Agip Oil Company Limited (NAOC Ltd) from Eni S.p.A., an Italian oil giant.

This acquisition increased Oando’s stake in four key oil mining leases —OMLs 60, 61, 62, and 63—from 20 percent to 40 percent.

Oando has outlined plans to enhance output through new drilling projects and improved security measures.

The acquisition has also bolstered investor confidence, with a notable rise in the company’s share price and market value.

Definitely, it is not too early to conclude that the world the world class serial investor  has achieved prompt success and  positive developments, while setting a favourable tone for the rest of the year.

 

 

 

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