African Export-Import Bank (Afreximbank) has completed upsizing its reserve-based lending facility for Oando Oil Limited to $375 million.

The company had paid down the original $525 million facility to $100 million in 2024, creating significant headroom for refinancing and enhancing Oando’s financial flexibility.

The upsizing, led by Afreximbank with support from Mercuria Asia Resources PTE Limited (Mercuria), marks a key milestone in Oando’s strategic capital management. It will support Oando’s ambition to achieve production of 100,000 barrels of oil per day and 1.5 billion cubic feet of gas per day by the end of 2029, effectively boosting Nigeria’s oil output and reinforcing the country’s position in the global energy market.

According to Afreximbank, the upsizing is expected to drive local economic growth by creating jobs, improving infrastructure, and fostering technological advancements in the oil and gas sector.

Commenting on the development, Wale Tinubu, Group Chief Executive of Oando PLC and Executive Chairman of Oando Energy Resources, said: “We are pleased to have completed the upsizing of our RBL facility, a strategic milestone that reinforces our commitment as Operator of the Oando-NEPL JV to maximizing the value of our expanded asset portfolio.”

Tinubu added that the Joint Venture holds extensive reserves with the potential to generate over $11 billion in net cash flows to Oando over the assets’ life. “This working capital facility is a critical enabler towards efficiently extracting and monetizing these resources.”