L-R: Chief Financial Officer and Executive Director, Heirs Energies, Samuel Nwanze; CEO, Heirs Energies, Osa Igiehon; Chairman, Heirs Energies, Mr. Tony Elumelu, President and Chairman of the African Export-Import Bank (Afreximbank), Dr. George Elombi; Senior Executive Vice President, Afreximbank, Mr. Denys Denya, during the signing ceremony to mark the execution of a $750 million Financing Transaction between Heirs Energies and the Afreximbank in Abuja on Saturday.
Days after signing a gas flare commercialization agreement with the Nigerian National Petroleum Corporation (NNPC) Ltd and five offtakers for OML 17 — the company’s oil production bloc — Heirs Energoes has secured a $750 million financing facility from the African Export-Import Bank (Afreximbank). This move is expected to significantly scale up Heirs Energies oil and gas operations, strengthen upstream capacity, and support Nigeria’s drive for energy sufficiency and industrial growth.
Streamed live on multiple platforms, the financing agreement was signed on Saturday, 20th December in Abuja by Chairman of Heirs Holdings, Mr Tony Elumelu, and President and Chairman of the Board of Afreximbank, Dr George Elombi.
The facility is expected to increase crude oil production to approximately 100,000 barrels per day, up from over 50,000 barrels currently, while gas output is projected to rise to about 250 million cubic metres, reinforcing domestic gas supply and power generation across Nigeria.
Speaking at the signing ceremony, Elumelu described the transaction as a strong demonstration of African capital working for African businesses, praising Afreximbank’s growing capacity and boldness in supporting 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 Afreximbank has played a defining role in Heirs Energies’s growth journey, adding that the latest financing reflected the bank’s 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 stressed that financial support comes with responsibility, disclosing that despite severe challenges such as oil theft, Heirs Energies has never defaulted on its obligations.
Recounting the company’s acquisition of Oil Mining Lease (OML) 17, he revealed that the transaction faced prolonged delays during 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,” he said, noting that the delays imposed significant financial costs on the company.
In his remarks, Afreximbank President Dr George Elombi said the bank’s support for Heirs Energies aligns with its broader commitment to strengthening Africa’s energy sector, which he described as critical to economic stability.
“If we did not support the energy sector, about 23 African countries would be in serious trouble,” Elombi said, adding that the bank is preparing additional billion-dollar interventions to stabilise the sector.
He further disclosed that Afreximbank is working on the establishment of an energy-focused bank to manage and expand its growing energy portfolio across the continent.
“We will put tremendous capital into this and ensure that it is as innovative and impactful as Afreximbank itself, so that we can continue to support the sector,” he said.
Providing details of the facility, Executive Director and Chief Financial Officer of Heirs Energies, Mr Samuel Nwanze, explained that the financing was structured under a five-year reserve-based lending framework, combining refinancing of existing debt with fresh capital for expansion.
“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 Energies 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.
“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 to pursue growth, while part will go towards refinancing our existing debt,” he explained.
Nwanze added that increased gas production from OML 17 has already enhanced power generation across Nigeria’s eastern domestic gas network, improving capacity utilisation at power plants such as Geometric Power and Transcorp Power.
“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,” he said.
Nwanze said the new facility positions Heirs Energies for both organic and inorganic growth, as the company explores opportunities to acquire additional assets aligned with its vision of driving Nigeria’s energy sufficiency.
“Anywhere we see the opportunity to acquire more assets that will help us achieve that global vision is what we intend to do,” he said.
With the $750 million Afreximbank facility, Heirs Energies is positioned to deepen its role as a leading indigenous operator in Nigeria’s oil and gas sector, reinforcing the Africapitalism vision of African capital driving African development, while supporting power generation, industrial growth, and regional energy security.
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