The African Export-Import Bank (Afreximbank) has deepened its support for Nigeria’s energy sector with a landmark US$750 million financing facility for Heirs Energies Limited, a move set to significantly boost the country’s domestic oil and gas capacity amid rising energy demand.
The financing partnership is structured as a dual-tranche, senior secured reserve-based lending facility aimed at optimising Heirs Energies’ capital structure while unlocking critical liquidity to support its working capital needs. The facility will also accelerate the company’s ambitious field development programme as it enters a new phase of growth focused on increasing and sustaining oil and gas production.
The agreement was signed in Abuja by Dr. George Elombi, President and Chairman of the Board of Directors of Afreximbank, and Mr. Tony O. Elumelu, CFR, Chairman of Heirs Energies Limited. Under the arrangement, Afreximbank serves as the Mandated Lead Arranger, Facility Agent and Security Agent, underscoring the strategic importance of the transaction to both institutions.
Speaking at the signing ceremony, Dr. Elombi described the partnership as a strong demonstration of Afreximbank’s commitment to value creation and the empowerment of African entrepreneurs. He noted that sustained investment in the energy sector remains critical for fossil fuel-dependent African economies, warning that the absence of such financing could expose many countries to severe economic challenges. According to him, Afreximbank’s strength lies in forging partnerships that unlock Africa’s economic transformation and support the growth of African-owned enterprises.
Dr. Elombi also reaffirmed the bank’s resolve to advance the African Energy Bank project, positioning it as a major platform to house and scale Africa’s energy portfolio with bold and innovative capital deployment. He further disclosed Afreximbank’s willingness to collaborate with Heirs Holdings and its affiliates as they expand into other West African markets, including Ghana and Côte d’Ivoire, and across the wider continent, in line with its vision to strengthen African brands and businesses.
For Heirs Energies, the transaction represents a major vote of confidence in its growth trajectory and operational discipline. Mr. Elumelu described the facility as a clear affirmation of what African enterprise can achieve when supported by long-term African capital. He said the deal reflects Heirs Energies’ successful journey from turnaround to growth and reinforces the belief in Africa financing Africa’s future.
Heirs Energies continues to play a strategic role in Nigeria’s oil and gas industry, where crude oil remains a resource of critical national and international importance. The company’s relationship with Afreximbank dates back to 2021, when it completed the acquisition of a 45 per cent participating interest in the OML 17 Joint Venture in a US$1.1 billion transaction led by Afreximbank. The bank participated with up to US$250 million in that financing, marking one of the most significant indigenous energy acquisitions in Nigeria’s oil and gas sector.
Since taking over the asset, Heirs Energies has doubled crude oil production from approximately 25,000 barrels per day to an average of 50,000 barrels per day, alongside increased associated and non-associated gas output. The company also delivered first gas from the Agbada Non-Associated Gas Plant in November 2021, just months after assuming control of an asset that had been under construction for over a decade.
Today, Heirs Energies stands as the leading gas supplier in Nigeria’s Eastern Domestic Network, supplying gas to three major power plants and contributing an estimated 15 per cent of the country’s installed electricity generation capacity. With Afreximbank’s latest backing, the company is well-positioned to further strengthen Nigeria’s energy security while advancing Africa’s broader industrial and economic development goals.
