Oando Plc, led by President Bola Tinubu’s nephew, Wale Tinubu, has seen its market value surge from N74 billion in 2023 to a staggering N1 trillion as of September 2024.
This represents an over 1,000% increase in valuation during a period when Nigeria grappled with severe cost-of-living and fuel crises.
While numerous multinational companies, including GlaxoSmithKline, Microsoft, and Diageo (Guinness parent company), exited Nigeria due to its challenging economic environment, Oando has ascended from generating billions to reaching a market capitalization of 12 zeros.
Previously considered an average-performing oil company, Oando posted a profit after tax of N74 billion for the financial year ending in 2023, making a tremendous turnaround from the previous year’s loss.
Just over a year into President Tinubu’s administration, the company’s share price soared from six naira on September 1, 2023, to an unprecedented N92, catapulting Oando into the ranks of the top 10 most-capitalized companies on the Nigerian Stock Exchange.
This dramatic rise in market value follows a controversial report by Peoples Gazette in January, which revealed President Tinubu’s alleged plans to transfer Eni’s Nigerian assets to Oando.
The report suggested that Eni would regain control of Nigeria’s lucrative OPL 245 oil field in partnership with Shell as part of the deal.
Last week, the transaction was officially announced by the involved parties, who valued the deal at approximately $785 million and denied any allegations of Oando securing favorable deals at the expense of Nigeria’s oil assets.
Wale Tinubu and Oando have consistently denied any impropriety, asserting that discussions leading to their recent successes began well before Bola Tinubu assumed office.
Nonetheless, the company’s meteoric rise has fueled speculation among netizens, with many attributing Oando’s success to Wale Tinubu’s familial connection to the president rather than to merit or hard work.
Amidst currency devaluation, fuel subsidy removal, and overall economic turmoil, many businesses have struggled, including billionaire Aliko Dangote, who recently fell from his position as Africa’s richest man to the second spot, according to Bloomberg Billionaire Index rankings released in August.
Oando is not the only business linked to the Tinubu family thriving under the current administration.
Earlier this year, President Tinubu awarded a massive road contract worth over N15 trillion to a company run by his son Seyi Tinubu and his associate, Gilbert Chagoury.
The Lagos-Calabar Coastal Highway project was awarded to Hi-tech, a company in which Seyi Tinubu sits on the board, sparking outrage and accusations of nepotism.
Despite the backlash and criticism from opposition figures like Atiku Abubakar, the presidency has denied any allegations of nepotism or corruption in the handling of federal contracts under the Tinubu administration.
Credit: Peoples Gazette
