AfrexInsure, the speciality insurance subsidiary of the African Export-Import Bank, has announced its onboarding of Oando Plc as one of its strategic clients to protect the bank’s investment in Oando’s operations in Nigeria through tailored speciality insurance solutions.
This was indicated in a statement released on Monday by the APO Group on behalf of Afreximbank.
Afreximbank’s partnership with Oando has included a pivotal role in financing the company’s strategic initiatives in Nigeria’s oil and gas sector, including facilitating a $650m financing for Oando’s acquisition of Nigerian Agip Oil Company Assets in August 2024 and the energy company’s June 2024 participation, through its Oando Trading subsidiary in Project Gazelle, the $3.3bn structured crude oil-backed finance facility sponsored by the Nigerian National Petroleum Company Limited, in which Oando Trading contributed $550m to a $925m accordion facility arranged by Afreximbank.
Commenting on the partnership, Chief Executive Officer/Principal Officer of AfrexInsure, Jonas Mushosho, said, “This strategic collaboration between Oando and AfrexInsure will help promote local content in Africa’s oil and gas sector. The collaboration, which also underscores a shared commitment aimed at fostering economic empowerment and contributing to the sustainable development of Africa’s natural resources, will also strengthen the African insurance sector by retaining premium flows within the continent and fostering Africa’s financial sustainability.”
Mushosho added that many multinationals doing business in Africa face high levels of risk in the current volatile and uncertain environment. Greater availability of affordable trade and trade-related speciality insurance solutions could mitigate those risks and encourage firms to engage in enhanced industrialisation and export development activities.
“This win by AfrexInsure shows how we are supporting the growth of trade and development in Africa by providing required insurance management services, giving investors the confidence to make investments in Africa. By using African securities, speciality insurance premiums raised in Africa are retained on the continent and are used to contribute to its overall trade and economic development,” he said.
In his comments, the Group Chief Executive, Oando, Wale Tinubu, said, “We have a longstanding relationship with Afreximbank, where we have seen the bank support our vision for energy in Africa, not only with essential financing but also with invaluable guidance and advisory support. Following our recent acquisition, a tailored risk identification and mitigation approach is paramount. We are confident that our collaboration with AfrexInsure will provide the necessary oversight to ensure both the adequacy and comprehensiveness of our risk management strategy.”
Meanwhile, a report by a local media in Trinidad and Tobago said Oando PLC, the preferred bidder for the lease of the Pointe-a-Pierre refinery, has been struggling financially.
The report stated that Oando’s unaudited statements and separate financial statements ending December 31, 2024, showed that “the company is in accounting insolvency.”
It disclosed that the company’s total liabilities were N7.8tn while its total assets were N7.5tn, saying, “Oando has borrowings of N2.8tn.”
It was stated that restarting the refinery recently acquired by Oando is expected to cost at least $1bn.
The report added that sources close to the bidding process are puzzled as to how and why Oando was chosen as the government’s preferred bidder a month ago by the cabinet instead of the indigenous CRO Consortium, Oando’s main competitor.
The PUNCH recalls that Oando was the preferred bidder for the lease of the Guaracara Refinery in Trinidad and Tobago in February.
The company defeated Trinidad’s CRO Consortium and INCA Energy, an American company, to win the lease of the refinery.
The country’s Minister of Energy, Stuart Young, announced that the decision was primarily based on Oando’s strong financial track record, highlighting its $1.5bn acquisition of ConocoPhillips’ assets in Nigeria in 2014.
