Oando PLC Strengthens Risk Management with AfrexInsure Partnership.

Friday 4th April 2025

非洲记者报道

AfrexInsure, the wholly-owned Specialty Insurance Subsidiary of African Export-Import Bank (Afreximbank), has announced the onboarding of Oando PLC as one of its strategic clients, further strengthening the business relationship between Oando and the Bank.

With Oando joining the clientele portfolio, this development aligns with Afreximbank’s financial support to the company, ensuring that the Bank’s investment in Oando’s operations in Nigeria is safeguarded through tailored Specialty Insurance Solutions. By mitigating operational and geopolitical risks, the collaboration enhances Oando’s resilience, promotes sustainable energy development, and reinforces Afreximbank’s commitment to economic growth and regional stability in the trade ecosystem.

Jonas Mushosho, CEO and Principal Officer of AfrexInsure, emphasized the strategic importance of the collaboration in promoting local content in Africa’s oil and gas sector. He highlighted that retaining premium flows within the continent strengthens Africa’s financial sustainability and supports economic empowerment and natural resource development. He further noted that multinationals operating in Africa face significant risks, and greater availability of affordable specialty insurance solutions would encourage increased industrialization and export development activities.

Mushosho underscored that AfrexInsure’s role is to support trade and development in Africa by providing essential insurance management services, helping investors gain confidence in making strategic investments. By leveraging African securities, specialty insurance premiums raised within the continent remain in Africa, contributing to trade and economic growth.

Wale Tinubu, Group Chief Executive of Oando PLC, expressed confidence in the partnership, citing Afreximbank’s longstanding support for the company’s vision for energy in Africa. He emphasized that following Oando’s recent acquisition, a well-structured risk identification and mitigation strategy is crucial. He affirmed that the collaboration with AfrexInsure will ensure the adequacy and comprehensiveness of Oando’s risk management approach. The partnership has played a significant role in financing strategic initiatives in Nigeria’s oil and gas sector, including a US$650-million financing for Oando’s acquisition of Nigerian Agip Oil Company assets in August 2024, which is expected to enhance production capacity from 20,000 to 100,000 barrels of oil equivalent per day, boosting Nigeria’s oil output and economic growth. Additionally, in June 2024, Oando Trading, a subsidiary of Oando PLC, participated in Project Gazelle, a US$3.3-billion structured crude oil-backed finance facility sponsored by the Nigerian National Petroleum Company Limited, contributing US$550 million to a US$925-million accordion facility arranged by Afreximbank.