Onome Amuge
Oando PLC is making significant strides in its clean energy diversification strategy, announcing material progress on the development of a 1.2-gigawatt (GW) solar PV module assembly plant as detailed in its unaudited first-quarter 2025 results. The integrated energy company confirmed that land has been successfully secured and financial modelling completed for the ambitious project.
This development follows a Memorandum of Understanding (MoU) signed earlier between Oando Clean Energy and the Rural Electrification Agency (REA) for the groundbreaking of this landmark solar initiative.
Demola Ogunbanjo, president & CEO of Oando Clean Energy, underscored the project’s transformative impact, stating, “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.” Abba Aliyu, managing director/chief executive officer of the REA, further highlighted the partnership’s significance, describing it as a game-changer, not just in expanding access to electricity but in positioning Nigeria as a renewable energy hub.
Oando indicated that the initial 600 MW line is slated for a 2026 rollout. This initiative is poised to drive the expansion of solar PV infrastructure, boost local manufacturing capacity, create jobs, and enhance energy accessibility across Nigeria. The company’s clean energy drive extends beyond this plant; its electric mobility programme saw 53,941 electric vehicle rides in Q1 2025, resulting in 42,779 kg of CO2 emissions averted through its two operational e-buses. The 2025 outlook anticipates the deployment of 50 electric buses and continued progression towards a final investment decision for the solar PV module assembly plant.
The company’s traditional upstream business also reported a strong start to the year. Wale Tinubu, Oando’s group chief executive, commented, “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 what Tinubu described as a transformative 2024, Oando’s priority is now to maximise the value of its expanded upstream portfolio. This will be achieved through targeted infrastructure upgrades, rig-less well interventions, and an extensive drilling programme scheduled for the second half of the year. These activities are now financially enabled by recently secured working capital, providing the company with the flexibility to accelerate execution. Oando is also taking decisive action to restructure its balance sheet, aiming to restore financial resilience.
Oando’s diversified strategy extends to re-evaluating certain clean energy ventures. The company confirmed a re-evaluation of a waste-to-energy project with BGE due to capital cost considerations, with a feasibility review currently underway. It has also completed a techno-economic study for a 6 MW geothermal pilot and continues to engage with key partners on this front.
The indigenous energy group posted a solid quarterly financial performance, with gross profit increasing by 172 per cent to N85 billion and revenue growing by two per cent year-on-year to N933 billion.
Beyond Nigeria, Oando is actively expanding its regional and international presence. Tinubu highlighted the company’s entry into Angola’s Kwanza Basin as a major milestone in scaling its upstream footprint across Africa.
For the full year, Oando has reaffirmed its production target of 30,000–40,000 barrels of oil equivalent per day. It has projected capital expenditure of $250–$270 million, dedicated to drilling, infrastructure, and environmental, social, and governance (ESG) projects, with an ambitious aim to reduce costs by 20 per cent.
