The books opened and now we can see why Oando has not released its 2022 annual report. The report is very bad: the “Oil driller Oando requires at least N3 trillion to clear its debts and inject the rest of the cash into its operation to stand a chance of staying in business”, notes Premium Times.
“A material uncertainty, therefore, exists that may cast significant doubt on the company’s and group’s ability to continue as a going concern, thereby resulting in the company’s and group’s inability to realise the assets and settle the liabilities in the ordinary course of business at the amounts recorded in these consolidated and separate financial statements,” said Independent auditor BDO Professional Services.
It is scary as the business is now in a zombie state with liabilities larger than the assets. But for an oil drilling company in Nigeria, things can turn around fast. If we have a developed private equity, someone can just take this business private. But it all depends on how confident the shareholders are that the reports are indeed factual.
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