In a strategic move that confirms the rise of local energy players, Nigerian company Heirs Energy has secured £750 million (approximately €637 million) in financing from the African Export-Import Bank (Afreximbank). The loan, signed on 20 December, aims to double the oil and gas production of the group, a key player that has become essential to national electricity security.
This massive financing comes amid the gradual withdrawal of international majors such as Shell and TotalEnergies from Nigeria's onshore sector. It illustrates the growing capacity of local companies, led by Nigerians, to take over and develop these assets, now playing a central role in national production and gas supply to power stations.
The five-year agreement with Afreximbank combines refinancing and new capital. It should enable Heirs Energy to increase its production targets to around 100,000 barrels of oil per day and 250 million cubic metres of gas, compared with around half that amount at present.
This increase in capacity is crucial for the Nigerian economy. The gas produced by Heirs Energy at its OML 17 asset (acquired in 2021) already supplies several major power plants, including TransAfam Power Limited (966 MW). By doubling its production, the company will be able to expand its supply to the local market, directly contributing to the stability of the national grid and the industrialisation of the country.
The success of Heirs Energy, owned by billionaire Tony Elumelu, serves as a model. It demonstrates that with rigorous financial management – its £1.1 billion acquisition was mostly repaid in less than four years – African companies can raise capital on a large scale and manage complex assets.
This transaction is part of a broader trend. Players such as Renaissance Africa Energy and Seplat Energy are also investing billions to increase production. Together, these local producers now account for between 50% and 60% of national oil production, strengthening Nigeria's energy sovereignty.
This financing from Afreximbank is therefore much more than just a loan. It validates a paradigm shift in the Nigerian energy sector, where local champions are taking over from the majors, with the stated ambition of securing the country's electricity supply and becoming its industrial pillars.