AfrexInsure, Oando Plc partner to safeguard energy investments in Nigeria
AfrexInsure, the insurance subsidiary of the African Export-Import Bank, has announced its collaboration with Oando Plc as one of its strategic partners to protect the bank’s investment in Oando’s operations in Nigeria through tailored specialty insurance solutions.
This was revealed in a statement by the APO Group on behalf of Afreximbank on Monday.
“Afreximbank’s partnership with Oando has included a pivotal role in financing the company’s strategic initiatives in Nigeria’s oil and gas sector, including facilitating a $650 million financing for Oando’s acquisition of Nigerian Agip Oil Company Assets in August 2024 and the energy company’s June 2024 participation through its Oando Trading subsidiary in Project Gazelle, the $3.3 billion structured crude oil-backed finance facility sponsored by the Nigerian National Petroleum Company Limited, in which Oando Trading contributed $550 million to a $925 million accordion facility arranged by Afreximbank,” the statement said.
Jonas Mushosho, CEO/Principal Officer of AfrexInsure affirmed that the strategic collaboration between Oando and AfrexInsure will help promote local content in Africa’s oil and gas sector.
“The collaboration, which also underscores a shared commitment aimed at fostering economic empowerment and contributing to the sustainable development of Africa’s natural resources, will also strengthen the African insurance sector by retaining premium flows within the continent and fostering Africa’s financial sustainability,” he said.
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Mushosho added that many multinationals doing business in Africa face high levels of risk in the current volatile and uncertain environment. Greater availability of affordable trade and trade-related specialty insurance solutions could mitigate those risks and encourage firms to engage in enhanced industrialisation and export development activities.
“This win by AfrexInsure shows how we are supporting the growth of trade and development in Africa by providing required insurance management services, giving investors the confidence to make investments in Africa. By using African securities, specialty insurance premiums raised in Africa are retained on the continent and are used to contribute to its overall trade and economic development,” the CEO added.
Wale Tinubu, the Group CEO, Oando reinstated the company’s relationship and commitment to supporting Afrixembank’s vision for energy in Africa.
“We have a longstanding relationship with Afreximbank, where we have seen the bank support our vision for energy in Africa, not only with essential financing but also with invaluable guidance and advisory support,” he said.
He added that following the recent acquisition of the bank, a tailored risk identification and mitigation approach is paramount.
“We are confident that our collaboration with AfrexInsure will provide the necessary oversight to ensure both the adequacy and comprehensiveness of our risk management strategy,” Tinubu said.
