Oando Plc has successfully entered into a $650 million agreement with Nigerian Agip Oil Company, marking a significant step in strengthening its business presence in Nigeria’s energy sector. The deal, which has been backed by AfrexInsure, the specialty insurance subsidiary of the African Export-Import Bank (Afreximbank), aims to safeguard Oando’s investments through tailored risk management solutions.
This partnership represents a further deepening of the business relationship between Oando and Afreximbank. The agreement is expected to mitigate both operational and geopolitical risks that may arise, enhancing Oando’s resilience within a volatile energy market. In a statement released on Monday by the APO Group on behalf of Afreximbank, the importance of the collaboration in ensuring sustainable economic growth and regional stability in Africa was highlighted.
Jonas Mushosho, the CEO and Principal Officer of AfrexInsure, emphasized that the collaboration would bolster local content in Africa’s oil and gas sector. “By retaining premium flows within the continent, we are strengthening Africa’s financial sustainability while enhancing trade and development,” Mushosho said. He further noted that many multinationals operating in Africa face significant risks, which makes affordable and comprehensive insurance solutions vital for encouraging further investment in industrialization and export development.
Wale Tinubu, the Group Chief Executive of Oando Plc, expressed confidence in the partnership, citing Afreximbank’s consistent support for the company’s vision in Africa. “With our recent acquisition, a robust risk identification and mitigation approach is critical, and we are confident that our collaboration with AfrexInsure will ensure the adequacy and comprehensiveness of our risk management strategy,” Tinubu stated.
This deal further reinforces the commitment of both Oando and Afreximbank to boost investor confidence in Africa’s energy and industrial sectors, paving the way for sustainable development and economic growth across the continent.
