The market value of Oando Plc, led by Wale Tinubu, the nephew of President Bola Tinubu, has soared to a record high of N1 trillion as of September 2024, up from N74 billion in 2023. This represents a staggering increase of over 1,000%. The surge comes during Nigeria’s worst cost-of-living and fuel crises, raising questions about the company’s rapid rise.
Oando, once considered an average-performing oil company, posted a profit after tax of N74 billion in 2023, a significant turnaround from a loss in the previous year. In the span of just over a year since President Tinubu took office, Oando’s share price skyrocketed from six naira in September 2023 to an all-time high of N92. This leap catapulted the company into the top 10 most-capitalised firms on the Nigerian stock exchange.
This remarkable growth comes as other multinational companies, including GlaxoSmithKline, Microsoft, and Diageo (the parent company of Guinness), exit Nigeria due to the country’s tough economic environment. Oando’s rise stands out, especially as many businesses, including billionaire Aliko Dangote’s, face challenges brought on by the country’s currency devaluation, fuel subsidy removal, and economic turmoil.
Wale Tinubu and Oando have denied any wrongdoing, maintaining that their recent successes were the result of discussions that began long before President Tinubu assumed office. “The company’s growth is a result of long-term planning and not political influence,” Oando stated.
The surge in Oando’s valuation has triggered speculation online, with many attributing the company’s success to Wale Tinubu’s close relationship with his uncle, President Bola Tinubu. Critics argue that Oando’s rise is tied to nepotism rather than merit, pointing to a report from Nigerian media, which exposed how President Tinubu allegedly planned to transfer Eni’s Nigerian assets to Oando in a $785 million deal. Both parties have denied any wrongdoing in this transaction, saying it was conducted transparently.
The criticism doesn’t stop at Oando. Earlier this year, President Tinubu awarded a N15 trillion road contract for the Lagos-Calabar Coastal Highway project to Hi-Tech, a company run by his son, Seyi Tinubu, and his business associate Gilbert Chagoury. The deal sparked further accusations of nepotism. Opposition leaders, including Atiku Abubakar, have been vocal in condemning the contracts awarded under the current administration.
In response to the backlash, the presidency has denied all accusations of nepotism or corruption, insisting that federal contracts are being handled fairly and in the best interest of Nigeria.
