The African Export-Import Bank (Afreximbank) announced on July 1, 2025, an increase in its lending facility to Oando Plc, Nigeria’s leading indigenous energy company, from $350 million to $375 million, aimed at expanding crude oil production and refining capacity.
The additional $25 million, approved in Cairo, will fund Oando’s acquisition of marginal fields and enhance its 20% stake in the Nigerian Agip Oil Company (NAOC), boosting Nigeria’s output to 2.5 million barrels per day (bpd) by 2027. Afreximbank’s President, Prof. Benedict Oramah, said the facility supports Nigeria’s $50 billion oil revenue target, addressing a 30% funding gap in the sector.
Oando, producing 50,000 bpd, plans to invest $1 billion in upstream operations, creating 5,000 jobs and increasing gas supply by 10% to Nigeria’s 8,000 MW grid. The facility, with a 5% interest rate, aligns with Afreximbank’s $3 billion commitment to Africa’s energy sector, with 60% targeting Nigeria and Angola.
Challenges include pipeline vandalism, costing Nigeria $5 billion annually, prompting Oando to allocate N200 million for security upgrades. The deal, finalized after a 2024 $650 million facility, strengthens Oando’s $2 billion market cap, with analysts projecting a 15% revenue rise by 2026.