Oando Plc, one of Nigeria’s leading indigenous energy firms, has announced a delay in the release of its 2024 Audited Financial Statements (AFS), missing the regulatory deadline of March 31, 2025. In a statement issued on Thursday, the company attributed this setback to two major challenges: the integration of Nigeria Agip Oil Company (NAOC) into its operations and compliance with newly expanded financial reporting requirements.
The acquisition of NAOC, now rebranded as Oando Energy Resources Nigeria Limited (OERNL), has introduced significant complexities in aligning accounting policies, consolidating financial systems, and integrating legacy platforms such as SAP and Oracle Fusion. Oando disclosed that while substantial progress has been made in these areas, delays have arisen due to pending critical financial data from ENI, the previous owner of NAOC. This data is crucial for completing the integration process in line with International Financial Reporting Standards (IFRS 3), which govern business combinations.
Further complicating matters is the Financial Reporting Council of Nigeria’s revised Internal Controls Over Financial Reporting (ICFR) guidelines, introduced in July 2024. These updated regulations expanded the definition of Public Interest Entities to include companies with an annual turnover exceeding ₦30 billion and government licensees. As a result, Oando and its subsidiaries, including OERNL, are now subject to additional scoping and testing requirements. The company explained that this has necessitated extensive attestations from its Group Chief Executive Officer, Group Chief Financial Officer, and independent auditors—processes that could not be completed before the end of March 2025.
Despite these hurdles, Oando has assured shareholders and stakeholders that efforts are underway to finalize the audit process. The company expects to file its 2024 AFS on or before May 30, 2025. Management is reportedly working closely with auditors and regulators to resolve outstanding issues and ensure compliance with all regulatory obligations.
This delay comes against the backdrop of Oando’s ambitious expansion strategy, which includes the $650 million acquisition of NAOC. While this acquisition is expected to significantly boost Oando’s operational capacity and market presence, it has also brought about transitional challenges that have impacted timelines for financial reporting. The company has emphasized its commitment to transparency and efficiency as it navigates these complexities.
Oando’s proactive communication on this matter reflects its intention to maintain investor confidence while addressing operational challenges posed by its recent growth initiatives and evolving regulatory landscape.
