Oando PLC has announced progress on the development of a 1.2-gigawatt solar PV module assembly plant, according to its unaudited Q1 2025 results.

The company said land had been secured and financial modelling completed for the project.

Oando Clean Energy and the Rural Electrification Agency had earlier signed a Memorandum of Understanding for the groundbreaking of the 1.2 GW solar project.

Speaking at the signing, President & CEO of Oando Clean Energy, Demola Ogunbanjo, emphasised the project’s impact, saying, “This is Africa’s first solar module assembly plant with a recycling line that will see old and dysfunctional solar panels recycled into raw materials for various purposes.”

The Managing Director/Chief Executive Officer of the REA, Abba Aliyu, highlighted the significance of the partnership: “This collaboration is a game-changer, not just in expanding access to electricity but in positioning Nigeria as a renewable energy hub.”

Oando stated that with the first 600 MW line set for a 2026 rollout, this initiative will drive solar PV infrastructure expansion, local manufacturing capacity, job creation, and energy accessibility across the country.

The company stated that its clean energy initiative is part of broader efforts, which also saw the company achieve 53,941 electric vehicle rides in Q1 and 42,779 kg of CO emissions averted through two operational e-buses under its electric mobility programme.

The Group Chief Executive, Wale Tinubu, said, “Q1 2025 marked a strong start to the year for us, with a 72 per cent year-on-year increase in production volumes as a result of the successful integration of the NAOC assets into our portfolio, improved asset reliability, and the reactivation of shut-in wells, reflecting early wins from our focus on operational efficiency and disciplined execution.

“Following a transformative 2024, our priority is to maximise the value of our expanded upstream portfolio through targeted infrastructure upgrades, rig-less well interventions, and an extensive drilling programme in the second half of the year. These activities are now enabled by the working capital we have secured, giving us financial flexibility to accelerate execution. We are also taking decisive action to restructure our balance sheet towards restoring financial resilience.”

Oando said it re-evaluated a waste-to-energy project with BGE due to capital cost considerations, with a feasibility review ongoing. It also completed a techno-economic study for a 6 MW geothermal pilot and continued engagements with key partners.

The company reported a solid quarterly performance for the indigenous energy group, which posted a 172 percent increase in gross profit to N85bn and a revenue growth of two percent year-on-year to N933bn.

Tinubu stated, “Beyond Nigeria, we have expanded our regional presence with our entry into Angola’s Kwanza Basin, marking a major milestone in scaling our upstream footprint across Africa.

“Similarly, being named preferred bidder for the Guaracara Refinery in Trinidad and Tobago demonstrates the strength of our integrated business model, our growing role in the Afro-Caribbean landscape, and a reflection of our evolution into a more geographically diversified energy company.”

Oando reaffirmed its full-year production target of 30–40,000 barrels of oil equivalent per day, with $250–$270m in projected capital expenditure dedicated to drilling, infrastructure, and environmental, social, and governance projects, aiming to reduce costs by 20 percent.