Afreximbank, Heirs Energies seal $750m financing deal

The African Export-Import Bank (Afreximbank) and Heirs Energies Limited have sealed a landmark US$ 750 million financing partnership aimed at optimizing the Nigerian energy company’s capital structure and providing essential liquidity to fuel its ambitious field development program.

The dual-tranche senior secured reserve-based lending facility, signed during a high-profile ceremony in Abuja, will support Heirs Energies’ accelerated growth strategy as it seeks to sustainably increase oil and gas production amid rising domestic energy demand in Nigeria.

Afreximbank, acting as Mandated Lead Arranger, Facility Agent, and Security Agent, was represented by Dr. George Elombi, President and Chairman of the Board. Heirs Energies Chairman Tony O. Elumelu CFR signed on behalf of the company. The deal builds on a longstanding collaboration that began in 2021 with Afreximbank’s leadership in financing Heirs’ historic US$1.1-billion acquisition of a 45% stake in OML 17.

Dr. Elombi described the partnership as a powerful demonstration of Afreximbank’s commitment to empowering African entrepreneurs and fostering value creation. “Without investments such as the one being provided to Heirs Energies, many fossil fuel-dependent African economies would face dire economic challenges,” he stated, praising Elumelu’s support and expressing Afreximbank’s readiness to expand cooperation across West Africa and the continent.

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Tony O. Elumelu hailed the transaction as “a powerful affirmation of what African enterprise can achieve when backed by disciplined execution and long-term African capital,” emphasising its role in showcasing “Africa financing Africa’s future.”

Since taking over OML 17, Heirs Energies has doubled crude oil production from around 25,000 to an average of 50,000 barrels per day, achieved first gas from the long-stalled Agbada plant, and become Nigeria’s top gas supplier in the Eastern Domestic Network—powering plants that contribute about 15% of the country’s installed electricity generation capacity.

The new funding is expected to drive further transformation in Nigeria’s energy sector, reinforcing Afreximbank’s mandate to promote intra-African trade, support African-owned enterprises, and advance the continent’s economic goals, including the forthcoming African Energy Bank initiative.