Nigeria’s indigenous energy sector is poised for a significant boost as Heirs Energy, a homegrown oil and gas firm, has secured a $750 million financing facility from the African Export-Import Bank (Afreximbank). The agreement is aimed at scaling the company’s operations, with projected increases in crude oil production to about 100,000 barrels per day and natural gas output to roughly 250 million cubic metres.
The facility, signed on Saturday in Abuja, is designed to strengthen Heirs Energy’s upstream operations while supporting Nigeria’s broader ambitions of energy self-sufficiency and industrial growth.
At the signing ceremony, Tony Elumelu, Chairman of Heirs Holdings, described the financing as a strong endorsement of African enterprises and institutions. He praised Afreximbank for its commitment to 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 emphasized that the bank’s involvement reflects African capital working for African businesses and highlighted Afreximbank’s willingness to provide room for growth as a sign of confidence in the company’s long-term prospects.
Elumelu acknowledged that securing such financial backing carries responsibility. Despite facing persistent challenges, including oil theft, Heirs Energy has consistently met its obligations. Reflecting on the company’s acquisition of Oil Mining Lease 17 (OML 17), he recounted the delays experienced under the previous administration due to concerns about private sector ownership of a large asset.
“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 the delays imposed substantial financial costs on the company.
Afreximbank’s President, Dr George Elombi, stressed that the financing aligns with the bank’s wider commitment to strengthening Africa’s energy sector, which he described as essential for economic stability across the continent. “If we did not support the energy sector, about 23 African countries would be in serious trouble,” he said, adding that additional billion-dollar interventions are being prepared to stabilise the sector.
The facility is structured under a five-year reserve-based lending framework and combines refinancing of existing debt with fresh capital to fund expansion, according to Samuel Nwanze, Heirs Energy’s Executive Director and Chief Financial Officer.
“Currently, we are producing over 50,000 barrels of oil per day and about 120 million cubic metres of gas,” Nwanze explained. “This funding is designed to help us scale to about 100,000 barrels per day and 250 million cubic metres of gas.” He also noted that the company had previously raised $1.1 billion to acquire OML 17 from Shell, Total, and Eni, most of which has been repaid over nearly four years of operations.
Nwanze highlighted that increased gas production from OML 17 has already supported power generation across Nigeria’s eastern domestic gas network, enhancing capacity utilization at plants such as Geometric 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,” he said.
In a related development, the NNPC/Heirs Energies OML 17 Joint Venture recently signed Gas Flare Commercialisation Agreements under the Nigerian Gas Flare Commercialisation Programme (NGFCP). The agreements, designed to eliminate routine gas flaring, convert previously wasted flare gas into economic value and support the country’s energy sustainability goals.
The $750 million facility signals a new phase of growth for Heirs Energy, reinforcing the role of indigenous energy firms in driving Nigeria’s energy independence and contributing to Africa’s broader industrial development.