Agip’s acquisition delays Oando’s 2024 financial statement
The acquisition of 100 per cent stake in the Nigerian Agip Oil Company (NAOC) has delayed Oando PLC from filing its 2024 Audited Financial Statements (2024 AFS). The company disclosed this in a statement to the Nigeria Exchange yesterday following the expiration of the regulatory deadline of March 31, 2025. It would be recalled that […]
Nigeria Agip Oil Company
The acquisition of 100 per cent stake in the Nigerian Agip Oil Company (NAOC) has delayed Oando PLC from filing its 2024 Audited Financial Statements (2024 AFS).
The company disclosed this in a statement to the Nigeria Exchange yesterday following the expiration of the regulatory deadline of March 31, 2025.
It would be recalled that Oando acquired NAOC from an Italian energy firm, Eni, in a deal valued at $783m. The deal was concluded last year.
The transaction significantly increases its participating interest in key oil mining leases 60, 61, 62, and 63 from 20 per cent to 40 per cent, effectively doubling its stake in the NEPL/NAOC/OOL Joint Venture.
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Following this acquisition, the energy group listed on both the Nigerian Exchange Limited (NGX) and the Johannesburg Stock Exchange (JSE Limited), told its shareholders and the public that, in accordance with Rule 1.1.4 of the NGX Rulebook on the Filing of Accounts and Treatment of Default Filing, the company was unable to publish its 2024 Audited Financial Statements (2024 AFS) by the regulatory deadline of March 31, 2025.
The company now anticipates completing and filing the 2024 AFS on or before May 30, 2025.
It said the second factor for the delay was “Expanded Internal Controls over Financial Reporting (ICFR) Requirements.”
Following the acquisition of Nigeria Agip Oil Company (now Oando Energy Resources Nigeria Limited – OERNL), Oando must integrate OERNL’s financials into its consolidated statements, in compliance with IFRS 3 requirements, the company said in the statement by Ayotola Jagun, its chief compliance officer and company secretary.
The statement added, “This involves aligning accounting policies, mapping charts of accounts, and integrating legacy systems (SAP and Oracle Fusion).
“While significant progress has been made, the process has been delayed due to pending responses from ENI regarding critical financial data.
“Given the material impact of this integration on the group’s financials, its completion is essential before finalizing the audit.
“In July 2024, the Financial Reporting Council of Nigeria (FRC) revised its ICFR guidelines, expanding the definition of Public Interest Entities (PIEs) to include government licensees and companies with an annual turnover exceeding N30 billion.
“Consequently, certain Oando subsidiaries, including OERNL, now require additional scoping and testing as part of the 2024 audit. Given the complexity of these new requirements, the ICFR process—including attestations from the Group Chief Executive (GCE), Group Chief Financial Officer (GCFO), and independent auditors— will not be fully completed until the end of March 2025.”
Oando further explained that it is actively overseeing the audit process to ensure “timely resolution of outstanding matters.”
“The company remains engaged with its auditors to mitigate further delays and is in continuous dialogue with regulators to manage the revised filing timeline,” it said.