The African Export-Import Bank (Afreximbank) has entered into a landmark US$750 million financing partnership with Heirs Energies Limited, in a move expected to strengthen Nigeria’s domestic energy supply and support the company’s next phase of oil and gas expansion.
The financing, structured as a dual-tranche senior secured reserve-based lending facility, is designed to optimise Heirs Energies’ capital structure and unlock critical liquidity to meet working capital needs as it accelerates its field development programme. The deal comes amid rising domestic energy demand and renewed focus on indigenous participation in Africa’s energy sector.
The agreement was signed in Abuja by Afreximbank’s President and Chairman of the Board of Directors, Dr. George Elombi, and Chairman of Heirs Energies Limited, Mr. Tony O. Elumelu, CFR. Under the arrangement, Afreximbank will serve as Mandated Lead Arranger, Facility Agent and Security Agent, underscoring its central role in structuring and executing the transaction.
Speaking at the signing ceremony, Dr. Elombi described the partnership as a clear demonstration of Afreximbank’s commitment to empowering African entrepreneurs and driving value creation across strategic sectors.
“Without investments such as this, many fossil fuel-dependent African economies would face severe economic challenges,” he said, adding that strong partnerships remain at the core of Afreximbank’s strategy to unlock Africa’s economic transformation.
Dr. Elombi also reaffirmed the bank’s resolve to advance the African Energy Bank initiative, noting that substantial capital would be deployed to build a bold and innovative institution capable of supporting Africa’s energy ambitions. He further indicated Afreximbank’s readiness to work with Heirs Holdings and its affiliates to expand operations beyond Nigeria into West Africa, including Ghana and Côte d’Ivoire, and across the wider continent.
For Heirs Energies, the transaction represents a significant endorsement of its growth trajectory. Mr. Elumelu said the deal reflects the power of African capital backing African enterprise.
“This transaction is a powerful affirmation of what African businesses can achieve with disciplined execution and long-term African capital,” he said. “It reinforces our belief in Africa financing Africa’s future.”
Heirs Energies plays a strategic role in Nigeria’s oil and gas industry, where crude oil remains central to national revenue and energy security. The company’s partnership with Afreximbank dates back to 2021, when Afreximbank led a consortium that financed Heirs Energies’ US$1.1 billion acquisition of a 45 per cent participating interest in the OML 17 Joint Venture, one of the largest indigenous energy transactions in Nigeria.
Afreximbank contributed up to US$250 million to that acquisition, reflecting its long-standing commitment to developing Africa’s energy sector and supporting African-owned enterprises.
Since taking over OML 17, Heirs Energies has doubled crude oil production from about 25,000 barrels per day to an average of 50,000 barrels per day. The company has also recorded significant progress in gas production, achieving first gas from the Agbada Non-Associated Gas Plant in November 2021, just months after assuming control of an asset that had remained under development for more than a decade.
Today, Heirs Energies is Nigeria’s leading gas supplier in the Eastern Domestic Network, supplying gas to three major power plants that together account for roughly 15 per cent of the country’s installed electricity generation capacity.
Industry observers say the US$750 million Afreximbank financing positions Heirs Energies to deepen its contribution to Nigeria’s energy security while highlighting the growing role of African financial institutions in funding large-scale, indigenous-led energy projects.
