Perfect Storm: Oando Faces Financial Stress as Going Concern Warnings Deepen

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Oando Plc (“Oando” or the “Group”), Africa’s leading indigenous energy group listed on both the Nigerian Exchange Ltd. (NGX) and the Johannesburg Stock Exchange (JSE), is under fresh pressures after warning that significant working capital deficiency as well as financial constraint could put its future at risk.

Africa’s leading indigenous energy company said in a Monday filing that there is substantial doubt about its ability to continue as a going concern.

The inevitable warnings come after a liquidity constraint bordering on mounting financial obligations that has not been met, which exposes the entity to bankruptcy risk.

For instance, Oando is accumulating short-term debt (e.g., accounts payable or short-term loans) much faster than it is generating cash or receivables, which are pernicious or deleterious to the company’s balance sheet.

It is obvious that the oil and gas giant cannot cover its immediate bills without liquidating long-term assets, which means a current assets of N2.84 trillion as at December 2026 cannot cover current liabilities of N6.60 trillion, according to MoneyCentral calculations.

The company is technically insolvent as its total liabilities of N8.01 trillion as at December 2025 exceeded total assets of N7.44 trillion, which resulted in a negative shareholders funds of N566.97 billion.

Defaults and Breaches of Financing Arrangements

According to a document seen by MoneyCentral, the company admitted defaulting on multiple borrowing arrangements across several financing facilities, indicating significant financial stress. Failure to meet obligations resulted in events of default and reclassification of the affected borrowings to current liabilities.

It is important to note that the reclassification of borrowings to current liabilities significantly…