ABUJA, Dec. 21, 2025 (Naija247news) –
Nigeria’s indigenous energy company, Heirs Energy, has secured a $750 million financing facility from the African Export-Import Bank (Afreximbank), a landmark deal expected to significantly scale up the firm’s oil and gas operations and deepen Nigeria’s push toward energy sufficiency and industrial growth.
The facility, signed on Saturday in Abuja, is structured to strengthen Heirs Energy’s upstream portfolio and support expanded production capacity. Upon full deployment, the financing is projected to lift crude oil output to about 100,000 barrels per day and gas production to approximately 250 million cubic metres.
Speaking at the signing ceremony, Chairman of Heirs Holdings, Tony Elumelu, described the transaction as a major vote of confidence in African-owned enterprises and institutions, praising Afreximbank for its growing role in backing large-scale indigenous projects.
“The most impactful and catalytic finance institution in Africa is Afreximbank. They have grown the capacity and the boldness to support African businesses,” Elumelu said.
He noted that the bank has played a defining role in Heirs Energy’s growth journey, stressing that the latest financing exemplifies African capital working deliberately for African businesses.
According to Elumelu, Afreximbank’s willingness to restructure existing obligations and provide room for expansion underscored its confidence in the company’s long-term prospects.
“For Afreximbank and others to come together and say, okay, we can restructure this and give you room to scale, it again shows Afreximbank’s belief in us. They started this journey and are now helping us move to the next level,” he said.
Elumelu added that access to finance also comes with responsibility, revealing that despite severe oil theft challenges in Nigeria’s Niger Delta, Heirs Energy has never defaulted on its financial obligations.
Reflecting on the company’s acquisition of Oil Mining Lease (OML) 17, he said the deal faced prolonged regulatory delays under the administration of former President Muhammadu Buhari, partly due to concerns that the asset was too large for private sector ownership.
“Our government at the time refused to approve it because it was considered too big for the private sector, forgetting that Shell itself was a private sector entity,” Elumelu said, adding that the delays imposed significant financial costs on the company.
On his part, President of Afreximbank, Dr. George Elombi, said the bank’s backing of Heirs Energy aligns with its broader strategy to stabilise and strengthen Africa’s energy sector, which he described as critical to economic survival across the continent.
“If we did not support the energy sector, about 23 African countries would be in serious trouble,” Elombi said, disclosing that the bank is preparing additional billion-dollar interventions to shore up the sector.
He added that Afreximbank’s African ownership reinforces its resolve to remain a reliable partner to indigenous companies during both favourable and challenging economic cycles.
Providing details of the facility, Executive Director and Chief Financial Officer of Heirs Energy, Samuel Nwanze, said the financing is designed to consolidate recent operational gains and unlock the company’s next phase of growth.
“Currently, we are producing over 50,000 barrels of oil per day and about 120 million cubic metres of gas. This funding is designed to help us scale to about 100,000 barrels per day and 250 million cubic metres of gas,” Nwanze said.
He disclosed that when Heirs Energy acquired OML 17 from Shell, Total and Eni, the company raised about $1.1 billion, most of which has been repaid after nearly four years of operations.
According to Nwanze, the new funding is structured under a five-year reserve-based lending framework, combining refinancing of existing debt with fresh capital for expansion.
“One leg is refinancing of existing debt. We are also structuring what we call a reserve-based lending facility. Because we have grown the capacity of the assets, we are getting additional money. The additional money will be used to pursue growth, while part of it will go towards refinancing our existing debt,” he explained.
He added that increased gas production from OML 17 has already boosted power generation across Nigeria’s eastern domestic gas network, improving capacity utilisation at plants such as Geometric Power and Transcorp.
“If we continue growing the business, we believe we can make an even greater impact on energy supply and sufficiency, not just for Nigeria but across the continent,” Nwanze said.
Meanwhile, the NNPC–Heirs Energy OML 17 Joint Venture has also signed Gas Flare Commercialisation Agreements under the Nigerian Gas Flare Commercialisation Programme (NGFCP) and approved non-NGFCP frameworks, bringing together Heirs Energy as operator and approved flare-gas offtakers to reduce waste and expand domestic gas supply.
Joshua Chinonye ✔
Godwin Okafor is the Publisher & CEO of Naija247news Media Group LLC, an independent investigative news platform delivering accurate, data-driven reporting on Nigerian and global politics, economy, finance, and business. Founded in October 2010, Naija247news specializes in developmental journalism, providing timely insights and analysis to readers across Nigeria and the diaspora.
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