Oando PLC Joins Afreximbank’s AfrexInsure Portfolio to Strengthen Risk Management, Promote Sustainable Energy

AfrexInsure, the fully-owned specialty insurance arm of the African Export-Import Bank (Afreximbank), has welcomed Oando PLC as a key client, further solidifying the growing business partnership between the two entities. The collaboration will allow Afreximbank to provide critical risk management solutions to Oando, safeguarding the bank’s investments in the company's Nigerian operations through tailored specialty insurance offerings. 

By addressing both operational and geopolitical risks, the partnership will enhance Oando’s resilience, support sustainable energy development, and reinforce Afreximbank's commitment to fostering economic growth and stability in the African trade ecosystem.

Jonas Mushosho, CEO and Principal Officer of AfrexInsure, commented on the development: “This strategic collaboration between Oando and AfrexInsure will help promote local content in Africa's oil and gas sector. The collaboration, which also underscores a shared commitment aimed at fostering economic empowerment and contributing to the sustainable development of Africa’s natural resources, will also strengthen the African insurance sector by retaining premium flows within the continent and fostering Africa’s financial sustainability.”

He further emphasized the significance of the relationship between Oando and Afreximbank, noting that many multinationals operating in Africa face high risks due to the current volatile environment. "The availability of affordable, trade-related specialty insurance solutions can mitigate these risks and encourage firms to engage in industrialization and export activities. AfrexInsure’s role in supporting Africa’s growth by providing the necessary insurance services boosts investor confidence, ensuring that insurance premiums are retained on the continent, contributing to its economic development," Mushosho added.

Wale Tinubu CON, Group Chief Executive of Oando PLC, also expressed his thoughts on the partnership: “We have a longstanding relationship with Afreximbank, which has supported our vision for energy in Africa with essential financing, guidance, and advisory support. Given our recent acquisition, a tailored risk identification and mitigation strategy is crucial. We are confident that working with AfrexInsure will provide the oversight needed to ensure that our risk management approach is comprehensive and effective.”

Afreximbank’s involvement with Oando extends beyond this partnership. Notably, the bank played a key role in financing Oando’s strategic initiatives in Nigeria's oil and gas sector, including:

• A US$650-million financing for Oando PLC’s acquisition of Nigerian Agip Oil Company assets in August 2024, which is set to boost Oando's production capacity from 20,000 to 100,000 barrels of oil equivalent per day, contributing to Nigeria's oil output and economic growth.

• Oando PLC’s participation in Project Gazelle, a US$3.3-billion structured crude oil-backed finance facility sponsored by the Nigerian National Petroleum Company Limited. Oando Trading, a subsidiary of Oando PLC, contributed US$550 million to a US$925-million accordion facility arranged by Afreximbank in June 2024.

AfrexInsure, a subsidiary of Afreximbank, provides specialty insurance products tailored to the unique needs of African clients. Its offerings help secure assets owned by clients while meeting the bankability requirements of project funders. By partnering with pan-African (re)insurers and strong local underwriters, AfrexInsure ensures that insurance premiums are retained within Africa, allowing these funds to be reinvested on the continent to support local businesses at more affordable rates.