Oando chief executive Wale Tinubu
Oando chief executive Wale Tinubu
Image: Reuters/Afolabi Sotunde

Chief executive, Wale Tinubu said the business would go through a period of ‘prudent consolidation’. In a teleconference with investors he sought to allay fears of long-term financial damage, “the company is well positioned to return to profitability within a short period of time.”

Lagos -based economist Tunji Andrews of TTAC Africa, said despite the drop in oil prices, Oando was not “fully prepared” to enter the exploratory business. “They seem to be struggling to come to grips with impairment charges and raising debt,” he told Quartz.

The entire loss cannot be attributed to asset write-downs alone though as Oando’s oil marketing and distirbution business was also hit by foreign exchange losses as the Nigerian naira struggled badly.

📬 Sign up for the Daily Brief

Our free, fast, and fun briefing on the global economy, delivered every weekday morning.