Irad Investment Ltd., an indigenous company, has decried alleged delay in payment after satisfactorily executing projects and contracts for Oando PLC.
The firm in a statement said the issue has resulted in significant financial strain and disrupted its financial stability.
While stating that Oando have failed to meet their payment obligations despite repeated requests and efforts to negotiate, the company disclosed that it secured loans from banks to execute jobs running into billions of naira and dollars for Oando for which humongous sums in interest were accrued with further threats on its assets.
The statement partly reads, “We are here today to address a pressing issue that has been affecting our company’s reputation and financial stability.
“Quite unfortunately, we have been facing challenges in receiving payments from our client Oando PLC for projects and contracts that have been completed to their satisfaction.
“Despite our best efforts to deliver high-quality work and meet our obligations, we have been met with delays in payment and outright refusal to pay. This has resulted in significant financial strain on our company.
“We secured proper facilities from our bankers to execute these jobs running into billions of naira and dollars for Oando for which we are paying humongous sums in interest with further threats on our assets.
“Oando PLC have failed to meet their payment obligations despite our repeated requests and efforts to negotiate.”
The company recalled staging a peaceful protest on the 15th July to call the attention of Oando over the “prolonged non-payment of several invoices for services duly rendered and acknowledged by Oando’s management.”
It added that “This peace protest action was a consequence of months of unfulfilled promises and extended payment timelines, despite repeated assurances from Oando that these outstanding obligations would be settled.
“Following the July protest, Oando’s management engaged us and appealed for calm, assuring that all verified invoices would be paid within a 3 months timeframe.
“In good faith, we accepted this commitment and stood down further actions, believing that the company would honour its word.
“However, it is now about three months after that commitment, and the payment status has been rather embarrassing, to say the least. Not up to 10% of the total outstanding has been paid.
“The continued delay has placed us under immense pressure from our bankers, suppliers, and subcontractors, many of whom have begun to lose confidence in our integrity as business partners.
“We have endured embarrassment, financial strain, and reputational damage arising solely from this default.”
Irad, which is headquartered in Port Harcourt, the Rivers State capital, called on Oando to be alive to their obligations and urgently settle all verified debts owed to Irad.
The firm urged Oando’s leadership to demonstrate the corporate responsibility and integrity expected of a leading player in Nigeria’s energy industry.
However, Irad reassured their stakeholders, including their employees, bankers, suppliers and partners, that “we are taking all necessary steps to resolve this situation and recover the payments that are rightfully due to us.
“We are also reviewing our contracts and agreements to ensure that we are better protected in the future.”
The company also reassured Oando that it remains committed to dialogue and partnership but insists that fairness and prompt action must now replace endless assurances.
“We also remain committed to delivering high-quality services and building strong relationships with our clients.
“Finally, we call on all relevant stakeholders to join voices in urging Oando to act responsibly and resolve this matter without further delay,” the statement concluded.
