At the Nigeria International Energy Summit (NIES) 2026, Oando Plc urged a fundamental rethink of financing strategies to ensure adequate and sustainable capital for Africa’s upstream oil sector. The indigenous energy company emphasized that the future of upstream development depends on collaborative leadership, disciplined capital structures, and robust risk management.
Speaking at the Upstream Leadership Dialogue, Dr. Ainojie ‘Alex’ Irune, Managing Director of Oando Energy Resources, and Mr. Akinbambo Ibidapo-Obe, General Manager, Commercial, outlined a unified perspective on the need to align policy, governance, and scale to attract long-term investment.
Upstream Resurgence Is Real, Not Speculative
Irune noted that Africa’s upstream recovery is no longer a hopeful narrative but a tangible reality driven by collaboration and innovation.
“What many once viewed as a myth has become a tangible story. We are seeing new partnerships and a different way of approaching an industry that had been written off. The focus now must be on sustaining that momentum and unlocking the scale of opportunity ahead.”
However, he cautioned that Nigeria’s production ambitions can only be achieved with access to capital that reflects the realities of upstream development.
“We are often clear about production targets, but the conversation around cost and capital is less explicit. To scale sustainably, we must rethink traditional financing pathways and pursue capital structures that provide patience, alignment, and long-term support.”
Scale, Integration, and Risk Management: The Capital Unlock
Ibidapo-Obe explained that while scale and integration are crucial, they alone do not guarantee access to competitive capital.
“Scale and integration give you the right to go after capital, but they are not enough on their own. What truly unlocks competitive capital is managing risk and reducing the risk premium.”
He noted that Oando’s recent expansion—marked by a near doubling of its reserves base to almost one billion barrels—has strengthened its capital positioning.
“Scale only works when you are in the driver’s seat. Being an operator allows us to match projects to capital, retain agility, and structure investments in a way that lenders and investors understand and support.”
Policy Clarity and the PIA
Ibidapo-Obe also stressed the importance of regulatory clarity in improving investor confidence, citing the Petroleum Industry Act (PIA) as a critical enabler.
“With greater policy clarity, capital can see that risk has reduced. That clarity, combined with scale, integration, and governance, creates a much stronger foundation for attracting long-term investment.”
Government Reaffirms Commitment
In his closing remarks, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, reiterated the Federal Government’s commitment to regulatory reforms, stakeholder collaboration, and local capacity development—describing them as essential for sustaining investor confidence.
Oando’s Strategic Vision
Irune concluded by emphasizing Oando’s commitment to building a resilient upstream business through disciplined capital allocation, strong governance, and strategic partnerships. He noted that the company will continue to engage policymakers and optimize commercial execution to position its energy portfolio for long-term growth and value creation across Africa.