Oando Plc has informed its shareholders and the public that it will not be able to release its 2024 Audited Financial Statements (2024 AFS) by the regulatory deadline of 31 March 2025, as stipulated under Rule 1.1.4 of the NGX Rulebook on the Filing of Accounts and Treatment of Default Filing.
The energy company, which is listed on both the Nigerian Exchange Limited (NGX) and the Johannesburg Stock Exchange (JSE Limited), now expects to finalise and submit the 2024 AFS on or before 30 May 2025.
Oando attributed the delay to two major factors: the integration of Nigeria Agip Oil Company (NAOC) following its acquisition, and the expanded internal controls over financial reporting (ICFR) requirements.
Following the purchase of NAOC, which has been rebranded as Oando Energy Resources Nigeria Limited (OERNL), Oando must incorporate its financials into the group’s consolidated statements in line with IFRS 3 standards. This involves harmonising accounting policies, mapping financial structures, and integrating legacy software systems such as SAP and Oracle Fusion.
While substantial progress has been made, the process has been slowed due to pending financial data from ENI, which is crucial for completing the integration. Given the significant impact this merger has on the company’s overall financials, it must be fully reconciled before the audit can be finalised.
Additionally, 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 businesses with an annual turnover exceeding ¦ 30 billion. As a result, some Oando subsidiaries, including OERNL, are now required to undergo additional scoping and testing as part of the 2024 audit.
Due to the complexity of these revised regulations, the ICFR process—which includes approvals from the Group Chief Executive (GCE), Group Chief Financial Officer (GCFO), and independent auditors—is not expected to be fully completed before the end of March 2025.
Oando assured stakeholders that its management is actively overseeing the audit process to ensure outstanding issues are resolved as quickly as possible. The company remains closely engaged with its auditors to minimise further delays and is in regular communication with regulators to manage the revised filing schedule.
While acknowledging the inconvenience caused by the delay, Oando reaffirmed its commitment to transparency and regulatory compliance.