Oando urges reform of upstream oil financing in Africa, highlighting capital access, governance, and policy for sustainable sector growth

Oando Plc has called for a fresh approach to financing Africa’s upstream oil sector, emphasising the need for adequate and patient capital, collaborative leadership, and disciplined risk management to sustain long-term energy growth.

Also read: Oando Profit Surge hits ₦210bn, Marks 164% Rise

Managing Director of Oando Energy Resources, Dr Ainojie ‘Alex’ Irune, and General Manager of Commercial, Mr Akinbambo Ibidapo-Obe, made the appeal during the Nigeria International Energy Summit (NIES) 2026, highlighting the importance of aligning policy, governance, and scale to attract investment.

“What many once viewed as a myth has become a tangible story,” Irune said at the Upstream Leadership Dialogue.

“We are seeing new partnerships and a different way of approaching an industry that had been written off. The focus now must be on sustaining that momentum and unlocking the scale of opportunity ahead.”

The executives noted that Nigeria’s upstream sector has strong technical capability, but achieving national production ambitions will depend on capital structures that recognise the realities of upstream operations.

Irune highlighted the need to rethink traditional financing pathways, advocating structures that provide long-term support, alignment, and patience.

Ibidapo-Obe added that scale and integration alone are insufficient to attract competitive capital. “What truly unlocks investment is managing risk and reducing the risk premium,” he said.

He pointed to Oando’s recent growth, including a near doubling of its reserves to almost one billion barrels, as a demonstration of the company’s strengthened capital positioning.

The executives also highlighted the role of regulatory clarity under the Petroleum Industry Act in boosting investor confidence.

“With greater policy clarity, capital can see that risk has reduced. That clarity, combined with scale, integration, and governance, creates a much stronger foundation for attracting long-term investment,” Ibidapo-Obe said.

Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, reaffirmed the Federal Government’s commitment to regulatory reforms, stakeholder collaboration, and local capacity development as essential for sustaining investor confidence and delivering concrete outcomes.

Irune concluded that Oando’s participation in NIES 2026 underscores its commitment to a resilient upstream business founded on disciplined capital allocation, robust governance, and enduring partnerships.

Also read: Oando Gross Profit Plunges 82% Amid Upstream Expansion

The company aims to strategically align leadership, enhance policy engagement, and optimise commercial execution to ensure sustainable growth and long-term value creation across Africa.