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Tony Elumelu, Chairman of Heirs Holdings and United Bank for Africa Plc, has disclosed that former President Muhammadu Buhari and his late chief of staff, Abba Kyari, thwarted his efforts to acquire an oil field in 2017. In an interview with The Financial Times, Elumelu revealed that Heirs Holdings had raised $2.5 billion to purchase the oilfield, but the deal was blocked by the Nigerian government, citing the strategic importance of the asset.
Elumelu expressed his surprise at the decision, noting that the acquisition would have involved purchasing the oilfield from a foreign company, which he believed would benefit Nigeria’s energy sector. Despite this setback, Elumelu successfully acquired a 45% stake in OML 17, an onshore oilfield, in 2021. The deal included $1.1 billion in financing from a consortium of global and regional banks and investors. OML 17, with a production capacity of 27,000 barrels of oil equivalent per day and estimated reserves of 1.2 billion barrels of oil equivalent, was previously owned by Shell, Total, and Eni.
In the interview, Elumelu discussed the challenges of operating in Nigeria’s oil industry, including the widespread issue of oil theft. He shared his frustrations over the theft of crude oil from his pipelines, which forced his company to shut down production in 2022. Despite these challenges, he reported that his operations are improving, with current production reaching 42,000 barrels of crude daily, although theft still accounts for about 18% of losses.
Elumelu also touched on the broader challenges facing Nigeria, including the ongoing economic crisis and the need for private sector involvement in driving the country’s growth. He emphasized the importance of the private sector in creating positive change, advocating for his philosophy of “Africapitalism,” which calls for African businesses to invest in the continent even in tough economic conditions.
As a member of President Bola Tinubu’s presidential economic advisory committee, Elumelu supports the administration’s reform efforts but questions the timing and implementation, particularly regarding the removal of fuel subsidies and the devaluation of the naira. Despite the challenges, Elumelu remains optimistic about Nigeria’s future and continues to play an active role in shaping its economic landscape.
