Afreximbank funds Heirs Energies with US$750m to boost Nigeria’s energy supply
The African Export-Import Bank (Afreximbank) has approved a landmark US$750-million financing facility for Heirs Energies Limited, aimed at strengthening Nigeria’s domestic energy capacity and supporting the company’s accelerated oil and gas development programme.
The dual-tranche, senior secured reserve-based lending facility was signed in Abuja by Afreximbank President and Chairman of the Board, Dr George Elombi, and Heirs Energies Chairman, Mr Tony O. Elumelu, CFR. The funding is expected to optimise Heirs Energies’ capital structure while unlocking liquidity to meet its working capital needs as it expands production.
Under the agreement, Afreximbank will act as Mandated Lead Arranger, Facility Agent and Security Agent, marking a significant milestone in the strategic partnership between the two institutions.
Speaking after the signing, Dr Elombi said the transaction reflected Afreximbank’s commitment to value creation and the empowerment of African entrepreneurs.
“Without investments such as this, many fossil fuel-dependent African economies would face severe economic challenges,” he said. “Our aim is to empower African enterprise through strong and enduring partnerships.”
He added that Afreximbank remains committed to the establishment of the African Energy Bank, which is expected to play a critical role in financing the continent’s energy sector, and expressed readiness to support Heirs Energies’ expansion into other West African markets, including Ghana and Côte d’Ivoire.
Mr Elumelu described the facility as a strong endorsement of African-led enterprise and capital.
“This transaction affirms what African businesses can achieve when supported by disciplined execution and long-term African capital,” he said. “It reinforces our belief that African capital must work for African development.”
Heirs Energies is a key player in Nigeria’s oil and gas sector, where crude oil and gas remain critical to national economic growth and power generation. The company’s relationship with Afreximbank dates back to 2021, when Afreximbank led a consortium that financed Heirs Energies’ acquisition of a 45 per cent interest in the OML 17 Joint Venture in a US$1.1-billion transaction.
Since that acquisition, crude oil production has doubled from about 25,000 barrels per day to an average of 50,000 barrels per day. The company has also expanded gas production, achieving first gas from the Agbada Non-Associated Gas Plant in November 2021.
Currently, Heirs Energies is the leading gas supplier in Nigeria’s Eastern Domestic Network, supplying gas to three major power plants that together account for around 15 per cent of the country’s installed electricity generation capacity.
