• Oando seeks to raise 220 billion naira ($162.5 million) through a rights issue

• More than 4.4 billion new shares to be offered at 50 naira each

• Net output rose 32% in 2025 as capital spending surged

Nigeria’s energy group Oando has formally launched a capital increase plan to raise about 220 billion naira ($162.5 million), subject to approval by the Nigerian Exchange Limited (NGX). The transaction involves the issuance of more than 4.4 billion new ordinary shares of 50 kobos each, offered at 50 naira per share.

The fundraising will be carried out through a rights issue, on the basis of one new share for every two shares held by shareholders as of February 13, 2026. The offer is being managed by Vetiva Securities Limited, Anchoria Securities Limited, Coronation Securities Limited, and Meristem Stockbrokers Limited, acting as the company’s brokers.

Capital restructuring

The operation is designed to strengthen the group’s financial structure and support its growth plans, at a time when Nigeria’s energy sector requires significant investment. It forms part of a broader capital restructuring plan that includes debt-to-equity conversions to be presented at a forthcoming board meeting. The goal is to clean up the balance sheet and improve financial flexibility for the group, which is listed on both the Nigerian Exchange and the Johannesburg Stock Exchange.

The move comes as the company reports solid operating performance. Net production rose 32% to an average of 32,482 barrels of oil equivalent per day in 2025, according to its unaudited results for the year ended December 31, 2025. Capital spending followed the same trend, jumping to 101.9 billion naira in 2025 from 18.5 billion naira a year earlier.

Sandrine Gaingne