The African Export-Import Bank (Afreximbank) has successfully increased its reserve-based lending (RBL) facility for Oando Oil Limited to $375 million, reinforcing the energy company’s strategic financial framework.

Oando had previously reduced the original $525 million facility to $100 million by 2024, creating substantial room for refinancing. The expanded facility enhances Oando’s financial agility and positions it to pursue ambitious growth targets.

Led by Afreximbank and backed by Mercuria Asia Resources PTE Limited, the upsizing reflects a key milestone in Oando’s capital strategy. The funding will support the company’s drive to reach a production goal of 100,000 barrels of oil and 1.5 billion cubic feet of gas per day by 2029 — a move expected to significantly boost Nigeria’s oil and gas output and reinforce its standing in the global energy space.

Afreximbank noted that the facility expansion will contribute to Nigeria’s economic development by generating employment, advancing infrastructure, and accelerating innovation in the energy sector.

Reacting to the development, Wale Tinubu, Group Chief Executive of Oando PLC and Executive Chairman of Oando Energy Resources, described the upsizing as a strategic step in maximizing the value of assets managed under the Oando-NEPL Joint Venture.

“Our JV holds significant reserves with the potential to yield over $11 billion in net cash flows over their lifespan,” Tinubu stated. “This facility is critical in ensuring the efficient extraction and monetization of these resources.”