Indigenous firm IRAD Investment Limited has accused energy giant Oando Plc of withholding payments for executed projects worth billions, warning that such practices could cripple the survival of local contractors in Nigeria’s oil and gas industry.
An indigenous engineering and investment company, IRAD Investment Limited, has raised alarm over what it described as the continued delay and alleged non-payment for several major projects executed for Oando Plc, one of Nigeria’s leading integrated energy corporations.
In a statement signed by its Director, Mr. Levi Golubo, and made available to journalists, IRAD said Oando’s failure to fulfill its financial obligations had created severe economic hardship for the company and posed a broader threat to indigenous contractors’ ability to continue operations within the energy sector.
“We are here today to address a pressing issue that has been affecting our company’s reputation and financial stability,” Golubo stated. “Despite our best efforts to deliver high-quality work and meet all contractual obligations, Oando Plc has failed to meet its payment commitments, leading to significant strain on our operations.”
According to Golubo, the company secured multiple bank loans running into billions of naira and dollars to execute projects for Oando. The firm said it now faces huge interest payments and threats to its assets due to the delay in payment for completed contracts.
“We secured facilities from our bankers to execute these jobs, which were all completed to Oando’s satisfaction. Yet, we are now burdened with enormous interest and the threat of asset seizure,” he added.
Despite repeated appeals and attempts at negotiation, IRAD said Oando has continued to issue verbal assurances without concrete action. The firm lamented that such corporate behavior undermines the survival of indigenous contractors who play vital roles in Nigeria’s oil and gas value chain.
“It is disheartening that a company of Oando’s repute in the energy sector has not demonstrated the corporate integrity expected of an industry leader. Indigenous firms like ours are the backbone of local content development, yet we are being stifled by non-payment,” Golubo emphasized.
The company reassured its stakeholders — including employees, suppliers, bankers, and partners — that it is taking all necessary steps to recover the funds owed and protect its financial position. It also pledged to strengthen its future contractual agreements to prevent a recurrence of such situations.
“We remain open to dialogue and partnership, but fairness, transparency, and prompt payment must now replace endless promises. Our company’s sustainability and the livelihoods of our workers are on the line,” IRAD declared.
Industry analysts have noted that this dispute highlights a growing pattern of delayed payments within Nigeria’s energy and construction sectors, where local contractors often bear the financial burden of slow remittances from larger corporations. Experts warn that if not urgently addressed, such practices could discourage investment and limit local participation in key national projects.
As of press time, Oando Plc has yet to issue an official response to IRAD’s allegations
IRAD Investment Limited accuses Oando Plc of failing to pay for multi-billion-naira projects, warning that delayed payments threaten the sustainability of indigenous contractors in Nigeria’s energy sector.
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