Report: Oando’s Market Value Surges from N70 Billion to N1 Trillion in Tinubu’s First Year as President

Oando Plc, led by Wale Tinubu, the nephew of President Bola Tinubu, has seen its market value jump from N74 billion in 2023 to N1 trillion as of September 2024. This represents an increase of over 1,000%, even as Nigeria faces severe economic difficulties, including high living costs and fuel shortages.

While multinational companies like GlaxoSmithKline, Microsoft, and Diageo have exited Nigeria due to the tough economic environment, Oando has risen to become one of the top ten most valuable companies on the Nigerian Stock Exchange.

In the financial year ending in 2023, Oando reported a profit of N74 billion after tax, a significant improvement from the previous year’s losses. The company’s share price, which was six naira on September 1, 2023, has now soared to N92.

This surge follows a $785 million deal involving the transfer of Eni’s Nigerian assets to Oando in exchange for rights to the lucrative OPL 245 oil field, in partnership with Shell. Despite denials of wrongdoing from Oando and Wale Tinubu, the deal has sparked controversy, with some questioning whether family connections influenced the company’s rapid rise.

Oando’s growth contrasts with the struggles of other major Nigerian businesses, including billionaire Aliko Dangote, who recently dropped from the top spot on Bloomberg’s Billionaire Index.

Additionally, earlier this year, President Tinubu awarded a N15 trillion road contract for the Lagos-Calabar Coastal highway to Hi-tech Construction, a firm associated with his son Seyi Tinubu and his associate Gilbert Chagoury. This has led to accusations of nepotism, though the presidency has denied any corruption or favoritism in federal contract allocations under the current administration.