Afreximbank Commits $750m Facility to Boost Nigeria’s Energy Sector

By Kepher Otieno - Reporter

Kenya, 22 December 2025 - Afreximbank’s approval of a $750 million financing facility for Heirs Energies Limited marks one of the most significant recent injections of African-backed capital into Nigeria’s domestic energy industry, underscoring a renewed push to stabilise and expand oil and gas production amid rising demand and persistent funding constraints.

The dual-tranche, senior secured reserve-based lending facility is designed to optimise Heirs Energies’ capital structure and unlock liquidity to support working capital and field development.

For Nigeria, Africa’s largest oil producer, the transaction comes at a time when domestic energy security, gas supply for power generation, and declining upstream investment remain pressing concerns.

The facility was signed in Abuja by Afreximbank President George Elombi and Heirs Energies Chairman Tony Elumelu.

Afreximbank is acting as Mandated Lead Arranger, Facility Agent and Security Agent, reinforcing its central role in structuring large-scale energy financing on the continent.

From a strategic perspective, the deal highlights Afreximbank’s willingness to continue backing fossil-fuel assets in Africa, despite global capital increasingly shifting away from hydrocarbons.

Bank executives argue that for many African economies, oil and gas remain critical to growth, fiscal stability and industrialisation, particularly as gas is positioned as a transition fuel supporting power generation and manufacturing.

Heirs Energies, part of the Heirs Holdings Group, has become a prominent case study in Nigeria’s push for indigenous participation in the upstream sector.

Its growth trajectory accelerated after the 2021 acquisition of a 45 per cent participating interest in OML 17, a transaction valued at $1.1 billion and financed by a consortium led by Afreximbank. The bank contributed up to $250 million to that earlier deal, helping facilitate one of the largest indigenous energy acquisitions in the country’s history.

Since taking over the asset, Heirs Energies has doubled crude oil production from around 25,000 barrels per day to an average of 50,000 barrels per day, while also expanding associated and non-associated gas output. The company’s delivery of first gas from the Agbada Non-Associated Gas Plant in November 2021—after more than a decade of delays under previous operators—strengthened its reputation for execution.

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Today, Heirs Energies is the largest gas supplier in Nigeria’s Eastern Domestic Network and supplies gas to three major power plants, accounting for roughly 15 per cent of installed electricity generation capacity. This positions the company not just as an upstream oil producer, but as a critical player in Nigeria’s gas-to-power value chain.

For Afreximbank, the transaction aligns with a broader strategy to anchor African capital in strategic sectors and reduce reliance on foreign financing.

Elombi has framed the partnership as part of the bank’s mission to empower African entrepreneurs and support value creation through long-term partnerships.

He also reiterated Afreximbank’s commitment to the proposed African Energy Bank, which is expected to consolidate and scale energy-sector financing across the continent.

The deal may also have regional implications. Afreximbank has signalled openness to supporting Heirs Holdings’ expansion into other West African markets, including Ghana and Côte d’Ivoire, reflecting a wider ambition to build African-owned energy champions with cross-border reach.

For investors and policymakers, the facility sends a clear signal: despite global energy transition pressures, African development finance institutions are likely to continue backing oil and gas projects that demonstrate strong execution, domestic impact and regional relevance.

In Nigeria’s case, where energy shortfalls remain a major constraint on growth, such financing could play a stabilising role—provided operational gains are sustained and revenues are effectively reinvested.

Ultimately, the Afreximbank–Heirs Energies partnership illustrates how African-led financing is shaping the next phase of Nigeria’s energy sector, balancing immediate economic realities with longer-term transition goals.