Oando Plc, an oil company led by Wale Tinubu, Chief Bola Ahmed Tinubu’s nephew, has seen its market value skyrocket from N74 billion in 2023 to N1 trillion as of September 2024.
This represents a more than 1,000% increase in valuation in Tinubu’s first year in office, despite Nigeria grappling with severe economic challenges, including a cost-of-living crisis and fuel shortages.
In contrast to the struggles faced by many multinational companies like GlaxoSmithKline, Microsoft, and Diageo, which have exited the Nigerian market due to economic hardships, Oando has risen to become one of the top 10 most-capitalised companies on the Nigerian Stock Exchange.
The company’s share price surged from N6 in September 2023 to N92 by September 2024.
Oando’s rapid growth follows its N74 billion profit after tax in 2023, a significant improvement from the previous year’s loss.
The company’s success has been met with public scrutiny, with many attributing the increase in market value to Wale Tinubu’s familial ties to Chief Tinubu rather than corporate performance.
This sentiment was further fueled by a January report from Peoples Gazette, which revealed plans to transfer Eni’s Nigerian assets to Oando in exchange for Eni’s re-entry into Nigeria’s lucrative OPL 245 oil field in partnership with Shell.
The $785 million deal was publicly confirmed last week, with all parties denying any wrongdoing.
Oando is not the only business linked to the Tinubu family that has thrived under the current administration. Earlier this year, a N15 trillion contract for the Lagos-Calabar Coastal Highway project was awarded to Hi-tech, a company led by Gilbert Chagoury, where Seyi Tinubu, the Tinubu’s son, sits on the board.
This contract award sparked allegations of nepotism, though Tinubu’s led federal government has denied any misconduct.
Follow the Parallel Facts channel on WhatsApp: https://whatsapp.com/channel/0029VaCQSAoHgZWiDjR3Kn2E
