Oando Plc, led by Wale Tinubu, the nephew of President Bola Tinubu, has seen its market value soar dramatically from N74 billion in 2023 to a staggering N1 trillion as of September 2024. This represents an extraordinary increase of over 1,000% in valuation during a period marked by Nigeria’s severe cost-of-living and fuel crises.
While many multinational companies, including GlaxoSmithKline, Microsoft, and Diageo, have exited Nigeria due to the challenging economic environment, Oando has experienced significant growth, moving from an average-performing oil company to one of the highest market-cap firms on the Nigerian stock exchange.
Oando reported a profit after tax of N74 billion for the financial year ending in 2023, a remarkable turnaround from the previous year’s losses. The company’s share price, which was six naira on September 1, 2023, surged to a record N92, positioning Oando among the top 10 most-capitalized companies in Nigeria.
This financial leap follows recent revelations from a January report by Peoples Gazette, which highlighted President Tinubu’s alleged plan to transfer Eni’s Nigerian assets to Oando. The deal, involving Eni’s return to Nigeria’s OPL 245 oil field in partnership with Shell, was confirmed last week, valued at $785 million. Both parties have denied any wrongdoing or preferential treatment.
The surge in Oando’s valuation has sparked controversy, with critics suggesting that the company’s success may be linked to Wale Tinubu’s family ties to the president rather than purely business achievements. This perception is compounded by the broader economic struggles in Nigeria, including currency devaluation and fuel subsidy removal, which have adversely affected other businesses.
In addition to Oando’s success, other ventures associated with the Tinubu family have also flourished. Earlier this year, President Tinubu awarded a massive road construction contract worth over N15 trillion to Hi-tech, a company run by his son, Seyi Tinubu, and his associate, Gilbert Chagoury. This move has faced accusations of nepotism, which the presidency has denied, asserting that the contract was awarded based on merit and in accordance with government procedures.
The dramatic rise in Oando’s market value and the associated controversies reflect the complex interplay of politics and business in Nigeria’s current economic landscape.
