The Initiates Plc., a leading Nigerian waste management and industrial cleaning company, co-founded by Reuben Mustapha Ossai, has increased its ownership in The Initiates Uganda to 55%, securing majority control as it deepens its expansion into East Africa’s oil and gas services market.

The Port Harcourt-based industrial cleaning and waste management firm acquired an additional 20% equity stake in its Ugandan unit for $2.02 million, completing the transaction on May 5, 2026. The deal values the Ugandan business at approximately $15 million, although you may want to verify that valuation independently.

Expanding regional footprint

The acquisition marks a significant step in The Initiates Plc’s strategy to build a pan-African footprint, giving it direct exposure to Uganda’s growing oil and gas industry and positioning it as a gateway into the broader East African energy market.

By consolidating control, the company is seeking to strengthen operational alignment between its Nigerian base and its East African operations, leveraging technical expertise and industry experience across both markets.

Boosting earnings diversification

The company expects the move to enhance earnings stability, as revenue generated by the Ugandan subsidiary will be denominated in U.S. dollars, helping to diversify income streams and potentially cushion against currency volatility in Nigeria.

Management also highlighted operational synergies, noting that deeper integration between both entities could improve efficiency and margins across projects.

Governance and reporting changes

Following the transaction, The Initiates Plc will hold three board seats in its Ugandan subsidiary and retain veto rights on capital expenditures above $500,000.

From the fourth quarter of 2026, the company said it will begin equity-accounting for the subsidiary’s financial performance in its consolidated results, providing shareholders with clearer visibility into its East African operations.

Funding and long-term strategy

The Initiates Plc. is a leading Nigerian waste management and industrial cleaning company founded by Reuben M. Ossai and Joe Ogbonna Anosikeh in 1995 and was primarily known for being the first waste management firm to list on the Growth Board of the Nigerian Exchange Group (NGX). Over the years, the Port Harcourt-based company has evolved from a niche waste handler into a multi-state operator. Since its listing on the Nigerian Exchange in 2016, The Initiates Plc has expanded its operational capacity, with growing ambitions to scale across Sub-Saharan Africa.

The acquisition was funded through internal cash flow, reflecting the company’s effort to scale without increasing external debt exposure.

Chief Executive Officer Reuben Mustapha Ossai said the deal represents a key milestone in the firm’s long-term ambition to build a leading pan-African waste management and industrial services group. As competition intensifies in Africa’s oil and gas services sector, strategic expansions such as this are becoming increasingly critical for mid-sized firms seeking regional relevance and валюте-diversified earnings growth.