Oando Plc, one of Nigeria’s largest energy companies, is making a major push into renewable energy with a 1.2-gigawatt solar project, the largest of its kind in the country. Under a newly signed Memorandum of Understanding (MoU) with the Rural Electrification Agency, the project will be executed by Oando Clean Energy, the company’s renewable energy subsidiary.
Oando’s Clean Energy Expansion
The project marks a key step in Oando’s strategy to diversify beyond oil and gas. Ademola Ogunbanjo, CEO of Oando Clean Energy, described the initiative as a breakthrough for Africa, noting that it will include the continent’s first solar module assembly plant with a built-in recycling line for repurposing old and dysfunctional solar panels.
Project Highlights
• Total capacity: 1.2 gigawatts
• Phase 1: 600-megawatt solar rollout (completion in 2026)
• Impact: Expands solar photovoltaic infrastructure, supports carbon capture, and improves energy access across Nigeria
This move aligns with Nigeria’s just energy transition and Oando’s long-term vision to become a leading clean energy provider on the continent.
Oando’s Global Expansion Under Wale Tinubu
Under the leadership of Wale Tinubu, Oando has evolved into a fully integrated energy giant, spanning upstream, midstream, and downstream operations. The company, formerly known as Unipetrol before its 2003 rebrand, operates through Ocean and Oil Development Partners, where Tinubu holds a 66.67% controlling stake alongside Omamofe Boyo.
Beyond Nigeria, Oando has been aggressively expanding its global footprint:
• Caribbean expansion: Oando recently won the bid to lease the Guaracara refinery in Pointe-à-Pierre, Trinidad and Tobago, marking its entry into the Caribbean refining market.
• Angola acquisition: Acquired Block KON 13, strengthening its presence in Africa’s oil sector.
• $783 million deal: Took over Nigerian Agip Oil Company, cementing its position as a dominant player in West Africa’s energy industry.
Financial Performance: Strong Revenue, High Costs
Oando’s revenue surged 45% in 2024, jumping from N2.845 trillion ($1.9 billion) in 2023 to N4.122 trillion ($2.76 billion). This growth was fueled by:
• Higher crude oil production
• Rising gas prices
• Favorable exchange rates
Profitability Challenges
Despite the revenue jump, rising costs limited profit growth:
• Production costs: N3.84 trillion ($2.56 billion)
• Administrative expenses: N402.7 billion ($269.5 million)
• Finance costs: N232.1 billion ($155.3 million)
As a result, Oando’s profit rose by just 9%, reaching N65.5 billion ($43.9 million)—up from N60.3 billion ($40.3 million) in 2023.
Oando’s Renewable Energy Future
With this record-breaking solar project, Oando is positioning itself as a leader in Nigeria’s energy transition, while maintaining its dominance in oil, gas, and refining. Under Wale Tinubu, the company’s ability to balance fossil fuel profits with clean energy investments will be key to shaping Nigeria’s energy future.
