Group Chief Executive Officer of Oando Plc, Wale Tinubu, has emphasised the scale and significance of Africa’s untapped hydrocarbon wealth, calling for renewed financing support to unlock its full potential.

Speaking on the continent’s energy landscape at the ongoing 4th edition of the Intra-African Trade Fair in Algiers, Algeria, Tinubu revealed that Oando, as a group, currently holds over one billion barrels in proven oil reserves and maintains a daily production capacity of over 200,000 barrels.

In addition to its upstream assets, the company generates more than 1,000 megawatts, equivalent to one gigawatt, of power, underscoring its diversified and large-scale energy operations across Africa and beyond.

Tinubu stressed that despite holding oil reserves valued between $30 billion and $40 billion, realising these resources requires significant and continuous investment.

He disclosed that the process of extraction is capital-intensive, with ongoing operational demands typically requiring between $500 million to $1 billion in working capital at any given time.

This includes acquisition financing and day-to-day funding necessary to operate and expand oil and gas assets.

On the shifting dynamics in energy financing over the past decade, Tinubu pointed to a stark contrast in the composition of financing partners. In 2014, during Oando’s $1.4 billion acquisition of ConocoPhillips’ Nigerian assets, the company was backed by a syndicate of over 10 international banks.

However, by 2023, when Oando acquired assets from ENI in a deal valued at around $700 to $800 million, Afreximbank stood as the sole financier in the syndicate.

According to him, this shift is largely due to a growing exodus of foreign financiers from Africa’s hydrocarbon sector, driven by global climate policies and investor reluctance to engage in fossil fuel projects.

Despite hydrocarbons remaining one of the most valuable natural resources on the continent, many global banks and investors are pulling back from funding oil and gas, leaving a critical gap in capital availability.

Tinubu argued that this global retreat is happening at a time when Africa should be strategically harnessing its hydrocarbon wealth.

He noted that the continent is home to approximately 30 percent of the world’s hydrocarbon reserves, with countries like Nigeria, Algeria, Angola, Congo, and Mozambique leading in oil and gas potential.

He highlighted that Algeria, for example, funds a significant portion of its national budget from hydrocarbon revenues.

He also drew attention to Africa’s growing relevance in the global gas market, particularly in the context of clean energy transitions.

As gas is increasingly recognised as a critical transition fuel in the global shift toward low-carbon energy, Tinubu pointed out that Africa holds around 40 percent of global gas reserves.

With global warming concerns driving demand for cleaner fuels, Africa’s abundant gas resources could play a central role in meeting future energy needs, if the continent is supported with the right mix of investment, partnerships, and long-term financing.

Tinubu added that the future of Africa’s energy security and economic development hinges on its ability to attract reliable, strategic capital, especially from within the continent to develop its natural resource base responsibly and sustainably.