Stakeholders have commended group chief executive of Oando Group, Jubril Adewale Tinubu, CON, for his visionary leadership and exploits in Nigeria’s oil and gas sector.
Renowned serial entrepreneur and group chief executive of Oando Group, Jubril Adewale Tinubu, CON, is once again making waves in Africa’s economic landscape with his visionary leadership and strategic acquisitions. Tinubu’s latest move, the historic acquisition of 100 percent stake in Nigerian Agip Oil Company Limited (NAOC Ltd), is set to reshape Nigeria’s oil and gas industry.
Many stakeholders in Nigeria’s oil and gas sector believe that Tinubu’s track record of incisive investment and his commitment to transforming Nigeria’s business climate have earned him a well-deserved reputation as one of Nigeria’s high-flying tycoons. They said his ability to consistently exceed expectations has solidified his position as a leader in the oil sector.
A Game-Changing Acquisition
Oando Plc, a Nigerian integrated energy solutions provider under Tinubu’s leadership, recently announced a groundbreaking agreement with global integrated energy company Eni. This agreement marks the acquisition of 100 percent of the shares of NAOC Ltd, a move that is poised to redefine Nigeria’s oil and gas landscape.
According to Femi Odunsi, an oil and gas expert, as a result of this acquisition, Oando’s stake in OMLs 60, 61, 62, and 63 will increase from 20 percent to an impressive 40 percent. This remarkable deal is subject to Ministerial Consent and regulatory approvals, underscoring its significance.
Tinubu expressed his optimism about the acquisition, stating, “The synergies created by this acquisition will unlock unparalleled opportunities for us to re-align expectations, enhance efficiency, optimize resource allocation, and significantly increase production. Furthermore, it aligns with our strategy of acquiring, enhancing, appraising, and efficiently developing reserves.”
A Transformational Impact
Odunsi said, ‘‘The AGIP acquisition represents a major leap for Oando, expanding its current interests in key assets and infrastructure. This includes forty discovered oil and gas fields, with twenty-four currently in production, and approximately forty identified prospects and leads. Additionally, the acquisition includes critical infrastructure such as production stations, pipelines, gas processing plants, and power plants, including the Kwale-Okpai phases 1 & 2 power plants.
‘‘Based on 2021 reserve estimates, this transaction will deliver a remarkable 98 percent increase in Oando’s total reserves, bringing the total to 503.3 million barrels of oil equivalent (MMboe). Furthermore, the acquisition will bolster Oando’s exploration asset portfolio by securing a 90 percent interest in OPL 282 and a 48 percent interest in OPL 135.’’
A Vision for Indigenous Participation
Tinubu emphasized the indispensable role played by indigenous companies in Nigeria’s upstream sector. This acquisition aligns with Nigeria’s objective of promoting local participation in the energy industry, contributing significantly to the nation’s economic growth.
This acquisition comes on the heels of Ocean and Oil Development Partners Limited (OODP), an investment firm predominantly owned by Tinubu, announcing its plans to take Oando Plc private. This initiative aims to drive the company’s growth after a series of legal battles.
OODP, the primary shareholder, is initiating a strategic plan to acquire all outstanding shares held by minority stakeholders, offering a scheme consideration that is 58 percent higher than the last traded share price of Oando. This move will lead to the delisting of Oando’s shares from the Nigerian Exchange and the Johannesburg Stock Exchange.
Another player in Nigeria’s oil sector, Charles Lekson, said Tinubu’s visionary leadership continues to reshape Nigeria’s energy sector, creating opportunities for growth and innovation. He said, ‘‘As Oando Group moves forward with these transformative endeavors, the future of Nigeria’s oil and gas industry looks brighter than ever. Tinubu can be likened to a humble mustard seed that has grown into a mighty oak tree. From his early days as a determined young man with dreams of becoming a global business titan, his journey in the oil and gas sector has been nothing short of remarkable. Tinubu’s path was strewn with formidable challenges at the outset, but his unwavering courage and resilience enabled him to conquer these initial obstacles.
‘‘His professional journey commenced in 1990 when he embarked on a career as an attorney, specializing in corporate and petroleum law. In 1994, he co-founded Ocean & Oil Group, charting its strategic evolution from a modest oil trading and shipping entity. Tinubu’s vision was crystal clear from the beginning: to transform the company into a prominent indigenous player in oil exploration and production on the African continent. Hailing from Lagos State, this magnate, affectionately known as the “King of African Oil,” lived up to his reputation by ascending to the summit of global business excellence through unwavering determination and focus. Today, he stands shoulder to shoulder with top executives worldwide, shining brightly in the international business arena.’’
A close ally of the oil magnate who prefers anonymity said that under Tinubu’s leadership, Oando Marketing, a downstream subsidiary of the group, has grown to become the largest marketer and distributor of refined petroleum products, boasting over 650 strategically positioned service stations across Nigeria, Ghana, Togo, Sierra Leone, and other West African nations. The conglomerate extends its reach to deep offshore exploration assets, power generation interests, and the ongoing development of a greenfield refinery with a capacity of approximately 240,000 barrels per day (bpd). Oando currently ranks as one of the largest indigenous energy companies listed on the Nigerian Stock Exchange (NSE) and, in 2005, made history as the first Nigerian company to dual-list on both the NSE and Johannesburg Stock Exchanges.
‘‘Wale Tinubu’s leadership has truly made the difference. This legal expert has carved out a prestigious niche for himself as one of Nigeria’s foremost dealmakers, positioning himself at the pinnacle of the country’s oil industry. Oando’s remarkable success story now comprises six subsidiaries: Oando Production and Development Company, Oando Refinery, Oando Trading Company, Oando Marketing, Oando Power Company, and Oando Energy Services. The company boasts over 500 petrol stations scattered across Nigeria, Ghana, Togo, the Republic of Benin, and Sierra Leone.’’
In 2008, Oando made a significant investment, paying $197 million for a 15 percent equity stake in two deep offshore oil mining leases. Recent years have seen the company’s expansion into drilling rights acquisition, with interests in at least 11 oil blocks in Nigeria, collectively valued at approximately $600 million. Further revenue streams flow from their 12.15 MW independent power plant in South West Nigeria, serving the Lagos State government, and a natural gas pipeline project initiated in 2007.
Yet, beyond his exceptional business acumen, Tinubu’s philanthropic endeavors shine brightly. While some are consumed by self-interest, he belongs to a rare breed who measure their life’s value by the impact they have on others. Tinubu’s name springs to mind when one thinks of philanthropists in contemporary Nigeria.
In 2019, he joined other prominent Nigerians in visiting the IDP camp in Maiduguri, Borno State, offering assistance to the inmates.
Additionally, Tinubu’s philanthropic gestures extend to education. He donated books to 15 universities and two national libraries across Nigeria, aiming to educate students and the public about the country’s vital oil and gas sector. His recent contribution of 300 million naira towards the completion of the Al-Noor Masjid at the International Centre for Islamic Culture and Education (ICICE) in Wuse 2, Abuja, reflects his commitment to making a positive difference.
Furthermore, Oando PLC, a leading energy solutions provider in Africa, has invested significantly in education through the Oando Foundation.
Over the past decade, the foundation has transformed the lives of Nigerian children through education. Inspired Hands, a part of this foundation, has organized career talks, book drives, school rehabilitations, and educational aid donations across Nigeria. Moreover, it has awarded and sponsored 221 scholarships, impacting 1,153 students from disadvantaged backgrounds. These beneficiaries have consistently achieved academic excellence, some representing their states and local governments in various academic competitions. The foundation has also played a pivotal role in enhancing the professional development of 28,322 teachers and 210 head teachers in school management, modern pedagogical practices, and subject content knowledge.
Born on June 26, 1967, Jubril Adewale Tinubu (CON) received his primary education in Lagos State before earning his West African School Certificate in 1983 from the Federal Government College, Odogbolu. He pursued a law degree at the University of Liverpool and later attained a Master of Laws degree from the London School of Economics. Returning to Nigeria at the age of 22, he attended the Nigerian Law School and was admitted to the Nigerian bar in 1990. Tinubu’s journey commenced with his family’s law firm, K. O. Tinubu and Co, where he specialized in corporate and petroleum law. His pivotal role in co-founding Ocean and Oil Limited in 1994 marked the genesis of what would eventually become Oando Plc.
