Wale Tinubu, a Nigerian oil magnate, has seen his fortunes skyrocket since his uncle, Bola Ahmed Tinubu, became Nigeria’s president in May 2023. Tinubu’s holding in Oando Plc, the major energy firm, has risen to more than $120 million as a result of a significant share price gain. Despite setbacks such as suspension from the Johannesburg Stock Exchange (JSE) and devaluation of the Nigerian naira, the company has experienced significant development.
Wale Tinubu owns an indirect 38.34% ownership in Oando Plc, which translates to 4.75 billion shares. Since Bola Ahmed Tinubu assumed the presidency on May 29, 2023, Wale Tinubu’s share in Oando has increased by $60.2 million, bringing the total worth to $120.2 million. This growth is striking in light of Nigeria’s economic difficulties, particularly the considerable devaluation of the naira, which has had a significant impact on the valuation of naira-denominated assets.
Oando’s share price on the Nigerian Exchange has increased by 589.5% in local currency terms, from N5.83 to N40.2 per share. Even after accounting for currency depreciation, this represents a 100.15 percent increase, from $0.126 to $0.253, resulting in a market valuation of about $315 million for the indigenous energy group.
Wale Tinubu’s wealth has increased due to his effective administration of Oando, rather than any direct influence from the presidency. The company, which specializes in integrated energy solutions and is one of the major indigenous energy groups in the country, was suspended from the JSE earlier this year for failing to report its 2022 audited results and 2023 interim results on time. However, Oando’s fortunes have turned around because to clever acquisitions and successful corporate actions.
Oando, led by Wale Tinubu, has acquired 100% of Nigerian Agip Oil firm Limited (NAOC Ltd) from Eni S.p.A, an Italian international oil and gas firm. This acquisition increased Oando’s holding in four oil mining leases (OMLs 60, 61, 62, and 63) from 20% to 40%.
With the signing of this significant transaction, Oando has detailed ambitious ambitions to raise its oil equivalent output from 50,000 to 100,000 barrels per day by 2029, including additional drilling operations and security measures. Its latest acquisition, which comprised complete ownership of all assets under the NEPL/NAOC/OOL Joint Venture, bolstered investor confidence, resulting in an increase in Oando’s share price and market capitalization.
Oando’s revival was further verified when it recovered its listing on the JSE after the March 29 ban. The company’s financial performance has been as spectacular, with a profit of N74.7 billion ($51 million) for fiscal year 2023. This profit exceeded market forecasts and reversed a loss of N81.2 billion ($54.5 million) in 2022.
Oando’s unaudited financial results show a 71% increase in revenue from N2 trillion ($1.34 billion) in 2022 to N3.4 trillion ($2.3 billion) in 2023. This increase was driven by increased trading activity and favorable exchange rate translations, despite a decline in NGL production volumes and prices.
Wale Tinubu’s financial success has been met with media scrutiny, particularly during his uncle’s administration. According to reports, President Bola Ahmed Tinubu arranged agreements for Oando, including acquiring NAOC and other assets from Eni via Gilbert Chagoury, a dubious Lebanese-Nigerian tycoon.
According to additional sources, the President intervened to dismiss existing charges against Shell and Eni in international tribunals, allowing both companies to retake control of the contested OPL 245 oil block without incurring new liabilities to Nigeria. These unproven reports have shed light on the nexus of business and politics in Nigeria’s oil sector.
