Heirs Energy has clinched a $750 million funding package from the African Export-Import Bank (Afreximbank) to aggressively expand its oil and gas operations, positioning the indigenous firm to significantly raise Nigeria’s crude and gas output.
The financing agreement, signed in Abuja at the weekend, is expected to push the company’s oil production to about 100,000 barrels per day, while gas output is projected to hit 250 million cubic metres.
Speaking at the signing ceremony in Abuja, over the weekend, Chairman of Heirs Holdings, Tony Elumelu, said the deal demonstrated growing confidence in African-owned enterprises and institutions, describing Afreximbank as a backbone for transformative projects on the continent.
“Afreximbank has shown uncommon courage in supporting African businesses at scale. They have built the capacity and confidence to back projects that can change our economies,” Elumelu said.
He noted that the bank had remained a key partner in Heirs Energy’s growth story, adding that the latest facility demonstrated how African capital could be mobilised to power African businesses.
Elumelu explained that the willingness of Afreximbank and its partners to restructure existing obligations and create room for expansion reflected strong belief in the company’s long-term potential.
“Support like this also comes with responsibility. Despite serious challenges such as oil theft, we have met all our obligations and maintained our credibility,” he added.
Reflecting on the company’s acquisition of Oil Mining Lease 17, the business mogul said regulatory delays under the administration of former President Muhammadu Buhari slowed the transaction, partly due to fears that the asset was too large for private sector ownership.
“The irony is that the asset was previously operated by Shell, itself a private sector entity. Those delays came at a huge cost to us,” he said.
On his part, Afreximbank President, Dr George Elombi, said the facility aligned with the bank’s wider strategy to stabilise Africa’s energy sector, warning that failure to support the industry could have severe economic consequences.
“Without sustained intervention in energy, more than 20 African countries would face serious difficulties,” Elombi said, disclosing that the bank was planning further multi-billion-dollar support for the sector.
He added that Afreximbank’s African ownership reinforced its commitment to stand by the continent’s businesses through both favourable and challenging cycles.
Giving further insight into the transaction, Heirs Energy’s Executive Director and Chief Financial Officer, Samuel Nwanze, said the funding would help consolidate existing operations and unlock a new growth phase.
He said the company currently produces over 50,000 barrels of oil per day and about 120 million cubic metres of gas, figures expected to double with the new financing.
Nwanze disclosed that Heirs Energy raised about $1.1 billion to acquire OML 17 from Shell, Total and Eni, and had repaid a substantial portion of the debt after nearly four years of operations.
According to him, the new five-year facility is structured as a reserve-based lending programme, combining refinancing of existing obligations with fresh capital for expansion.
He added that rising gas production from OML 17 had already strengthened electricity generation across Nigeria’s eastern gas network, improving output at power plants including Geometric and Transcorp.
“With sustained growth, we believe our impact on energy supply will go beyond Nigeria and contribute to energy security across Africa,” Nwanze said.
