ABUJA, Dec 22 – Heirs Energies has signed a $750 million financing agreement with the African Export-Import Bank, marking a significant funding milestone for the Nigerian energy company as it seeks to increase oil output, refinance existing obligations, and pursue growth opportunities across the continent.
The agreement was signed over the weekend in Abuja. Tony Elumelu, chairman of Heirs Holdings, said the transaction validates the role of African capital in backing African enterprises, particularly after years of regulatory and financing hurdles.
Elumelu traced the company’s journey to its acquisition of OML 17 from Shell, recalling the difficulty African private sector players faced in securing approvals and confidence at the time. He said early financial backing was crucial to completing negotiations, which later faced regulatory setbacks under a previous administration.
According to Elumelu, prolonged approval delays forced the company to incur significant costs related to bank charges and legal fees, while some assets were eventually removed from the transaction during restructuring.
Despite those challenges, he said support from Afreximbank and other African financial institutions enabled Heirs Energies to stabilise operations and pursue expansion. He described the financing as a public affirmation of African institutions supporting African businesses.
George Elombi, president of Afreximbank, said the bank’s partnership with private sector players such as Heirs Energies aligns with its mandate to support Africa’s economic development. He added that Afreximbank plans to deepen its involvement in energy financing, including expanding capital deployment into dedicated energy-focused vehicles.
