The market value of Oando PLC on the Nigerian capital market has sharply skyrocketed from N74 billion in 2023 to a record N1 trillion by September 2024—a more than 1,000% increase.
This surge comes as Nigeria grapples with severe cost-of-living and fuel crises, driving even multinational companies like GlaxoSmithKline, Microsoft, and Diageo (Guinness’ parent company) to exit the country due to harsh economic conditions.
Oando, a moderately performing oil company before President Bola Tinubu‘s administration, reported a N74 billion profit after tax in 2023, a sharp turnaround from the previous year’s losses. Oando’s share price soared in just over a year, from N6 in September 2023 and trading at N91 today Wednesday September 4, 2024. This has suddenly propelled the company into the top 10 most-capitalized firms on the Nigerian stock exchange.
Oando is owned by President Bola Tinubu’s nephew, Mr. Wale Tinubu, also the Chief Executive Officer.
This dramatic valuation increase follows a controversial deal where Oando acquired Eni’s Nigerian assets for $785 million, financially enabled by the African Export-Import Bank, Cairo, headed by a Nigerian Benedict Oramah, amid allegations that the transaction was influenced by Wale Tinubu’s familial ties to the president. Both Oando and Wale Tinubu have denied any wrongdoing, stating that discussions predated President Tinubu’s tenure.
The surge in Oando’s market value has sparked public debate, with many attributing the company’s success to its CEO’s connection to the presidency rather than merit – at least as suggested by opposition politician, Alhaji Atiku Abubakar.
Alleged Nepotism
Oando is one of many Tinubu-linked businesses thriving under the current administration. Earlier this year, President Tinubu awarded an N15 trillion Lagos-Calabar Coastal highway project to Hi-tech Construction, a company owned by his close associate Gilbert Chagoury and part of a group, one of which Tinubu son, Seyi, allegedly serves on a board member.
The president has received criticism for nepotism and cronyism, allegations that marked the administration of his predecessor and friend, Gen. Muhammadu Buhari. The president vowed to follow in the footsteps of the former president.
However, the presidency has vigorously denied any wrongdoing, insisting that due process and meritocracy were followed in all of its processes.
Comment, Like 👍, share this article, and Follow us on our social media handles.
WhatsApp Channel
Telegram Channel
