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Afreximbank backs Elumelu’s Heirs Energies with $750-million facility

29 Dec 2025
Financial Nigeria

Summary

Elumelu noted that the transaction is a powerful affirmation of what African enterprise can achieve when backed by disciplined execution and long-term African capital.

Tony Elumelu

African Export-Import Bank (Afreximbank) and Heirs Energies Limited have announced a $750 million financing partnership designed to optimise Heirs Energy’s capital structure and unlock critical liquidity to support its working capital requirements as it pursues its ambitious field development programme. The investment is expected to transform Nigeria’s domestic energy capacity as demand rises.

Signed by George Elombi, President and Chairman of the Board of Directors of Afreximbank, and Tony Elumelu, Chairman of Heirs Energies Limited, the dual-tranche senior secured reserve-based lending facility, concluded during a ceremony in Abuja, will support Heirs Energies’ accelerated growth strategy as the company enters a new phase of expansion seeking to increase and sustain its oil and gas production, according to Afreximbank.

Afreximbank was appointed the Mandated Lead Arranger, Facility Agent, and Security Agent under the financing, which is seen as an important milestone in strategic collaboration between Afreximbank and Heirs Energies.

“Without investments, such as the one being provided to Heirs Energies, many fossil fuel-dependent African economies would face dire economic challenges,” said Elombi. “Our aim, among others, is to empower the African entrepreneur. Our core strength is in the value of the partnerships we continue to forge.”

The President reaffirmed Afreximbank’s determination to see the African Energy Bank project to fruition, saying, “We should get to higher strides and get the Energy Bank so we can move most of the energy portfolio there. We will put tremendous capital in it to be as bold and as innovative as Afreximbank.”

Elombi added that Afreximbank was willing to work with Heirs Holdings and its affiliated companies to expand to other West African countries such as Ghana and Côte d'Ivoire, and to other parts of the continent. “Our aim is to spread and support the domination of the African brand across Africa,” he said.

Elumelu noted that the transaction is a powerful affirmation of what African enterprise can achieve when backed by disciplined execution and long-term African capital. “It reflects the successful journey Heirs Energies has taken – from turnaround to growth – and reinforces our belief in African capital working for African businesses. This is Africa financing Africa’s future,” said Elumelu. 

The partnership between Afreximbank and Heirs Energies Limited dates to 2021, when the company, then known as Heirs Oil & Gas, completed its landmark acquisition of a 45-per cent participating interest in the OML 17 Joint Venture with a US$ 1.1-billion transaction financed by a consortium of international and local banks led by Afreximbank, marking one of the most significant indigenous energy acquisitions in Nigeria’s oil and gas sector.

Afreximbank participated with up to US$ 250 million of that financing, noting that this underscored its commitment to Africa’s energy sector development and its mandate to promote intra-African trade and the growth of African-owned enterprises.

Since that acquisition, the crude oil production has increased from approximately 25,000 barrels per day to an average of 50,000 barrels per day, in addition to significant associated and non-associated gas production. Heirs Energies also achieved first gas from the Agbada Non-Associated Gas Plant on 21 November 2021, just months after taking over the asset, which had been under construction for over 10 years under the previous operator.

Currently, Heirs Energies is a major gas supplier in the Eastern Domestic Network. It supplies gas to three major power plants, collectively contributing approximately 15% of Nigeria’s installed electricity generation capacity.


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