By: Ecofin agency

Heirs Energy, a Nigerian oil and gas company controlled by banker Tony Elumelu, has secured a $750 million financing facility from Afreximbank to support the expansion of its upstream operations. The agreement, signed in Abuja on December 20, is structured as a five-year reserve-based loan and combines the refinancing of existing debt with new capital earmarked for production growth.

The transaction comes after several years of balance sheet cleanup. When Heirs Energy acquired the OML 17 oil mining lease in 2021 from Shell, Total, and Eni, it raised about $1.1 billion. Most of that amount has been repaid after nearly four years of operations. The new facility is designed to improve the company’s financial structure while restoring room for investment.

Elumelu described the deal as evidence of growing confidence by African financial institutions in African-owned companies. He highlighted Afreximbank’s role in backing large projects led by local players, calling the Bank a central force in financing African businesses at scale. He said Afreximbank is playing a decisive role in Heirs Energy’s ambition to build a resilient, African-owned energy group.

On the operational side, Heirs Energy currently produces more than 50,000 barrels of oil per day and around 120 million cubic meters of gas. The company plans to raise output to about 100,000 barrels per day and 250 million cubic meters of gas over the medium term. This growth strategy is based mainly on optimizing existing fields and improving the commercial use of associated gas, with no major new drilling programs announced so far.

For Afreximbank, the deal aligns with its broader push to support Africa’s energy sector. Its president, George Elombi, said energy stability is essential to macroeconomic balance across many African economies and noted that several multibillion-dollar financing operations are being prepared. He stressed the Bank’s long-term commitment, as an Africa-owned institution, to supporting the sector through both favorable cycles and periods of stress.

The transaction also reflects the growing weight of Nigerian independent producers as international oil majors continue to exit onshore and shallow-water assets. Heirs Energy is part of this trend, alongside companies such as Seplat and Renaissance Africa Energy, which have taken over fields sold by multinational groups. According to Nigerian regulators, local companies now account for between 50% and 60% of national oil production, up from about 40% a few years ago.