Oando Blames Financial Report Delay On NAOC Acquisition, Internal Control Requirements
Oando Plc has announced a delay in the publication of its 2024 Audited Financial Statements (2024 AFS), citing complexities arising from its recent acquisition of Nigeria Agip Oil Company (NAOC) and newly expanded Internal Controls Over Financial Reporting (ICFR) requirements.
The company in a notice to the Nigerian Exchange Limited seen by THE WHISTLER noted that it now anticipates filing the report on or before May 30, 2025, beyond the regulatory deadline of March 31, 2025.
The indigenous energy group listed on both the Nigerian Exchange Limited (NGX) and the Johannesburg Stock Exchange (JSE), attributed the delay to two key factors. They are integrating the financials of its newly acquired NAOC subsidiary and adhering to revised ICFR guidelines issued by the Financial Reporting Council of Nigeria (FRC).
It explained that following the acquisition of NAOC—now rebranded as Oando Energy Resources Nigeria Limited (OERNL)—the company is required to integrate OERNL’s financials into its consolidated statements in compliance with International Financial Reporting Standard (IFRS) 3.
This involves aligning accounting policies, mapping charts of accounts, and integrating legacy financial systems, including SAP and Oracle Fusion.
Oando noted that while significant progress has been made, certain aspects of the integration remain pending due to delayed responses from ENI, the previous owner of NAOC, regarding critical financial data.
Given the material impact of this integration on the Group’s financials, the company emphasized that completing this process is essential before finalizing the audit.
In July 2024, the FRC revised its ICFR guidelines, expanding the definition of Public Interest Entities (PIEs) to include government licensees and companies with an annual turnover exceeding N30bn.
As a result, several Oando subsidiaries, including OERNL, are now subject to more extensive financial reporting requirements.
The revised ICFR rules necessitate additional scoping, testing, and attestations from Oando’s Group Chief Executive (GCE), Group Chief Financial Officer (GCFO), and independent auditors.
The company noted that due to the complexity of these new requirements, the full ICFR process will not be completed until the end of March 2025, further contributing to the delay in filing the company’s financial statements.
Oando’s management assured shareholders and the public that it is actively overseeing the audit process to ensure timely resolution of outstanding matters.
The company is working closely with its auditors to mitigate further delays and remains in continuous dialogue with regulators to manage the revised filing timeline.
The company acknowledged any inconvenience caused by the delay and reaffirmed its commitment to regulatory compliance, financial transparency, and maintaining investor confidence.
Oando stated that it will continue to provide updates as the audit progresses.
ENDS
Oando Blames Financial Report Delay On NAOC Acquisition, Internal Control Requirements is first published on The Whistler Newspaper
