Economy
Oando Raises $550m to Support Nigeria’s Sustainable Development
By Adedapo Adesanya
Oando Plc has confirmed putting down about $550 million in the $925 million crude oil loan financing deal to Nigeria from the African Export-Import Bank (Afreximbank) to support the country’s sustainable development.
The deal named Project Gazelle was sponsored by the Nigerian National Petroleum Company (NNPC), but arranged and coordinated by Afreximbank, involving other crude oil off-takers like Sahara Energy and others.
The total funded facility size for Project Gazelle is about $3.175 billion, a statement from the company said. The project is a $3.3 billion structured crude oil-backed forward-sale finance facility.
The unique financing arrangement is backed by crude oil allocation from the royalties and tax entitlements of the Nigerian government and is a first of its kind in Africa’s largest economy.
The funds were provided to enable the much-required forex injection into Nigeria’s economy, helping the government meet its immediate obligations.
It is also expected to enable investments in critical projects to boost production and in turn, generate increased revenues, part of which would be used in paying off the facility over five years, it noted.
Speaking on Oando’s participation, Mr Wale Tinubu, the chief executive, said the transaction further reinforces the energy firm’s ability to create value and the company’s status as the indigenous partner of choice in Nigeria.
”The successful completion of this facility signifies another win for the company and the country at large. The transaction further reinforces Oando’s ability to create value and the company’s status as the indigenous partner of choice in Nigeria.
“As a proudly indigenous company, our ambition has always been to use our platform to support the sustainable development of the nation. Against this backdrop, Project Gazelle will be instrumental in realising the federal government’s efforts to boost the country’s socio-economic indices.
“Afreximbank as lead arranger continues to support African corporations – public and private growing confidence in the market and continent,” Mr Tinubu stated.
One of the key reasons given for the novel Project Gazelle, Oando said, was its ability to avail the federal government in the immediate to medium term with access to funding for investments in critical sectors that will help in reversing some negative economic indices and trends, while positively impacting the lives of its citizens.
In a joint statement with Afreximbank, NNPC’s Group CEO, Mr Mele Kyari commended the bank’s management and team for their investment philosophy and active interest in the co-creation of prosperity.
“The successful disbursement of the first accordion under Project Gazelle and its interest in funding viable and strategic projects is a clear indication of investors’ confidence in NNPC and Nigeria’s growth aspirations,” he said.
He further assured Afreximbank and all investing communities of NNPCL’s resolve to continue to grow the nation’s hydrocarbon resources and strengthen its partnerships across the oil and gas value chain locally, and globally.
Commenting on the disbursement, President & Chairman of the Board of Directors, Afreximbank, Mr Benedict Oramah, said the funding will greatly support the attainment of Nigeria’s short and long-term economic development priorities
“The milestone achieved thus far, on this facility, demonstrates the bank’s capabilities in performing its role as a crucial development partner for Africa. It reaffirms our commitment to assisting our member states in their efforts to achieve economic growth and stability.
“This funding will greatly support the attainment of Nigeria’s short and long-term economic development priorities,” he stated.
Mr Oramah described the original facility as ‘a landmark’ for being the largest crude oil-backed facility in Nigeria and one of the largest syndicated debts raised in Africa.
He added that the closure of the first accordion demonstrated the existence of a positive market appetite for well-structured commodities-backed instruments.
Oando also announced the lifting of the suspension of the company’s secondary securities listing on the Johannesburg Stock Exchange (JSE).
After a two-month suspension, the JSE’s recent action means investors in South Africa are now able to trade in Oando’s securities on the country’s exchange, it said.
Furthermore, Oando said it saw a positive swing in its NGX share price appreciating by 52.8 per cent between April 28 to June 6, 2024, a period that saw the company release its audited FYE2022 results and shortly after at the end of May, its interim FYE2023 results.
It pointed out that investors had shown a strong and positive response to the release of the company’s 2023 unaudited financial reports which showed a major recovery for the indigenous energy company.
“Oando’s FYE2023 interim report showed a 71 per cent increase in turnover from N1.9 trillion in 2022 to N3.4 trillion in 2023 as well as a Profit after Tax position of N74.7billion, a 192 per cent increase from the preceding year.
“After recent upheavals, it looks like exciting times are ahead for Oando, its shareholders, the investing public and the Nigerian economy,” said the statement.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited witnessed Santa Claus rally on Wednesday after it closed higher by 0.12 per cent.
Strong demand for Nigerian stocks lifted the All-Share Index (ASI) by 185.70 points during the pre-Christmas trading session to 153,539.83 points from 153,354.13 points.
In the same vein, the market capitalisation expanded at midweek by N118 billion to N97.890 trillion from the preceding day’s N97.772 trillion.
Investor sentiment on Customs Street remained bullish after closing with 36 appreciating equities and 22 depreciating equities, indicating a positive market breadth index.
Guinness Nigeria chalked up 9.98 per cent to trade at N318.60, Austin Laz improved by 9.97 per cent to N3.20, International Breweries expanded by 9.85 per cent to N14.50, Transcorp Hotels rose by 9.83 per cent to N170.90, and Aluminium Extrusion grew by 9.73 per cent to N16.35.
On the flip side, Legend Internet lost 9.26 per cent to close at N4.90, AXA Mansard shrank by 7.14 per cent to N13.00, Jaiz Bank declined by 5.45 per cent to N4.51, MTN Nigeria weakened by 5.21 per cent to N504.00, and NEM Insurance crashed by 4.74 per cent to N24.10.
Yesterday, a total of 1.8 billion shares valued at N30.1 billion exchanged hands in 19,372 deals versus the 677.4 billion shares worth N20.8 billion traded in 27,589 deals in the previous session, implying a slump in the number of deals by 29.78 per cent, and a surge in the trading volume and value by 165.72 per cent and 44.71 per cent apiece.
Abbey Mortgage Bank was the most active equity for the day after it sold 1.1 billion units worth N7.1 billion, Sterling Holdings traded 127.1 million units valued at N895.9 million, Custodian Investment exchanged 115.0 million units for N4.5 billion, First Holdco transacted 40.9 million units valued at N2.2 billion, and Access Holdings traded 38.2 million units worth N783.3 million.
By Adedapo Adesanya
Nigerian food and beverage company, Rite Foods Limited, has extended warm Yuletide greetings to Nigerians as families and communities worldwide come together to celebrate the Christmas season and usher in a new year filled with hope and renewed possibilities.
In a statement, Rite Foods encouraged consumers to savour these special occasions with its wide range of quality brands, including the 13 variants of Bigi Carbonated Soft Drinks, premium Bigi Table Water, Sosa Fruit Drink in its refreshing flavours, the Fearless Energy Drink, and its tasty sausage rolls — all produced in a world-class facility with modern technology and global best practices.
Speaking on the season, the Managing Director of Rite Foods Limited, Mr Seleem Adegunwa, said the company remains deeply committed to enriching the lives of consumers beyond refreshment. According to him, the Yuletide period underscores the values of generosity, unity, and gratitude, which resonate strongly with the company’s philosophy.
“Christmas is a season that reminds us of the importance of giving, togetherness, and gratitude. At Rite Foods, we are thankful for the continued trust of Nigerians in our brands. This season strengthens our resolve to consistently deliver quality products that bring joy to everyday moments while contributing positively to society,” Mr Adegunwa stated.
He noted that the company’s steady progress in brand acceptance, operational excellence, and responsible business practices reflects a culture of continuous improvement, innovation, and responsiveness to consumer needs. These efforts, he said, have further strengthened Rite Foods’ position as a proudly Nigerian brand with growing relevance and impact across the country.
Mr Adegunwa reaffirmed that Rite Foods will continue to invest in research and development, efficient production processes, and initiatives that support communities, while maintaining quality standards across its product portfolio.
“As the year comes to a close, Rite Foods Limited wishes Nigerians a joyful Christmas celebration and a prosperous New Year filled with peace, progress, and shared success.”
By Adedapo Adesanya
The Naira closed the pre-Christmas trading day positive after it gained N6.61 or 0.46 per cent against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, December 24, trading at N1,443.38/$1 compared with the previous day’s N1,449.99/$1.
Equally, the Naira appreciated against the Pound Sterling in the same market segment by N1.30 to close at N1,949.57/£1 versus Tuesday’s closing price of N1,956.03/£1 and gained N2.94 on the Euro to finish at N1,701.31/€1 compared with the preceding day’s N1,707.65/€1.
At the parallel market, the local currency maintained stability against the greenback yesterday at N1,485/$1 and also traded flat at the GTBank forex counter at N1,465/$1.
Further support came as the Central Bank of Nigeria (CBN) funded international payments with additional $150 million sales to banks and authorised dealers at the official window.
This helped eased pressure on the local currency, reflecting a steep increase in imports. Market participants saw a sequence of exchange rate swings amidst limited FX inflows.
Last week, the apex bank led the pack in terms of FX supply into the market as total inflows fell by about 50 per cent week on week from $1.46 billion in the previous week.
Foreign portfolio investors’ inflows ranked behind exporters and the CBN supply, but there was support from non-bank corporate Dollar volume.
As for the cryptocurrency market, it witnessed a slight recovery as tokens struggled to attract either risk-on enthusiasm or defensive flows.
The inertia follows a sharp reversal earlier in the quarter. A heavy selloff in October pulled Bitcoin and other coins down from record levels, leaving BTC roughly down by 30 per cent since that period and on track for its weakest quarterly performance since the second quarter of 2022. But on Wednesday, its value went up by 0.9 per cent to $87,727.35.
Further, Ripple (XRP) appreciated by 1.7 per cent to $1.87, Cardano (ADA) expanded by 1.2 per cent to $0.3602, Dogecoin (DOGE) grew by 1.1 per cent to $0.1282, Litecoin (LTC) also increased by 1.1 per cent to $76.57, Solana (SOL) soared by 1.0 per cent to $122.31, Binance Coin (BNB) rose by 0.6 per cent to $842.37, and Ethereum (ETH) added 0.3 per cent to finish at $2,938.83, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
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