In Nigeria’s oil sector, Oando Plc, an indigenous energy giant, is making headlines with a major shareholder reward initiative. The company has completed the first tranche of its planned share distribution, allocating 679,364,206 fully paid shares to eligible investors in what the company describes as a strategic move to deliver long-term value.
The allocation marks the completion of the first phase of a two-stage distribution involving a total of 1,283,712,601 shares, a plan approved by Oando’s Board of Directors in January 2025. The process stems from a settlement arrangement ratified at the company’s 45th Annual General Meeting in December 2024, where shareholders agreed to surrender a portion of their holdings for redistribution. Shares were earmarked for allocation on a pro-rata basis, ensuring that investors benefited in proportion to their existing stakes.
The first tranche, launched on February 14, 2025, was completed after receiving regulatory clearance in July. Under the plan, shareholders received one fully paid share for every twelve they already held, representing an 8.3 percent yield based on the prevailing market price at the time. The second tranche will be allocated to investors on record as of June 30, 2025, with details to be announced in the coming months.
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Commenting on the development, Oando’s Group Chief Executive, Wale Tinubu, CON, described the initiative as a demonstration of the company’s “unwavering commitment to delivering tangible value to our shareholders.” He noted that the issuance came with no dilution to existing holdings, effectively increasing investors’ stakes without requiring additional capital.
For shareholders, the distribution not only boosts ownership but also offers the potential for future value appreciation, particularly if the company maintains strong performance.
From a corporate perspective, Oando sees the move as an opportunity to optimize its share structure, manage outstanding shares, reinforce investor loyalty, and ensure compliance with regulatory requirements. The company has encouraged any eligible shareholders who have not yet received their first tranche allocation to contact its registrar and update their records.
The distribution forms part of Oando’s broader strategy to streamline operations and strengthen its capital base, a plan aligned with resolutions from an Extraordinary General Meeting held on August 12, 2025, to address capital diminution. At that meeting, shareholders reviewed measures in accordance with Section 137 of the Companies and Allied Matters Act, 2020, aimed at reducing the company’s capital for the 2024 financial year.
The EGM came on the heels of Oando’s 46th Annual General Meeting earlier the same day, where a series of ordinary and special resolutions were approved. Among the key decisions was authorization for the company to raise up to N500 billion in fresh capital, a move seen as essential to funding growth initiatives and navigating market volatility.
With the first phase of the share distribution now complete, attention will turn to the execution of the second tranche later this year and the potential impact of Oando’s capital-raising efforts on its market position. For investors, the company’s latest moves signal a strong bid to balance shareholder rewards with long-term growth ambitions.
