The African Export-Import Bank (Afreximbank) has finalized the increase of its reserve-based lending facility granted to Oando Oil Limited, bringing the total amount to $375 million. With this increase, Oando is strengthening its capacity to play a leading role in the revival of oil production in Nigeria, with expected effects on employment, infrastructure, and technological development in the sector, according to a statement released on Monday, July 1.
In July 2025, Afreximbank, with the support of Mercuria Asia Resources PTE Limited, concluded the extension of the facility, presented as a strategic pillar in Oando’s capital management. This partnership will enable the Nigerian company to achieve its production goals, including reaching 100,000 barrels of crude oil per day and 1.5 billion cubic feet of natural gas per day by the end of 2029.
According to Wale Tinubu, Group Chief Executive of Oando PLC, the Oando-NEPL joint venture holds significant reserves capable of generating over $11 billion in net cash flows over the assets’ lifespan.
“This working capital facility is a crucial lever for the efficient extraction and monetization of these resources,” he said, also expressing his gratitude to Afreximbank and Mercuria for their long-term commitment.
In 2024, the company had repaid most of the initial facility, reducing the outstanding balance to $100 million. This early repayment strengthened the company’s financial flexibility and paved the way for a more ambitious refinancing.
This development continues a partnership initiated in 2019 between Afreximbank and Oando. That year, the pan-African bank granted the company a $525 million facility, aimed at refinancing its existing commitments and supporting its growth strategy.
On Afreximbank’s side, Haytham Elmaayergi, Executive Vice President in charge of the Global Trade Bank, stated that this operation aligns with the bank’s strategy to promote the industrial transformation of the African continent, particularly through the development of local content in key sectors such as oil and gas.
