Some deals matter less for their size than for what they reveal about confidence, judgment, and timing. The recently announced $750 million financing agreement between Afreximbank and Heirs Energies belongs in that category. Signed in Abuja on December 20, the $750 million facility is structured as a five-year reserve-based lending (RBL) arrangement. It combines the refinancing of existing obligations with fresh capital dedicated to production growth.
At face value, it is a significant capital injection into a privately owned African energy company. At a deeper level, it reflects a shift that has been gathering momentum across the continent: African institutions are increasingly prepared to finance African enterprise at scale, using their own balance sheets and their own assessment of risk.
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For much of the post-independence period, large energy transactions in Africa were shaped externally. Capital was sourced abroad, risk was priced elsewhere, and strategic priorities were often misaligned with domestic economic needs. This model produced assets, but it rarely produced confidence. What distinguishes the Afreximbank–Heirs Energies arrangement is that both capital and conviction are African.
Heirs Energies, chaired by Tony O. Elumelu, has positioned itself as a company that seeks scale without detachment from national priorities. Its focus on expanding oil and gas production intersects directly with issues that matter to African economies: energy security, industrial input supply, fiscal revenues, and employment. Afreximbank’s backing implies that these linkages are now being recognised as commercially viable. ,
Elumelu framed the deal as a clear example of “Africa financing Africa’s future,” emphasising the importance of patient capital and disciplined execution in building sustainable enterprises.
Reserve-based lending ties borrowing capacity directly to the value of proven reserves, rewarding operational performance and asset optimisation. In Heirs Energy’s case, this structure reflects confidence in the underlying strength of Oil Mining Lease (OML) 17, one of Nigeria’s most significant onshore oil and gas assets. Afreximbank’s decision to extend reserve-based financing to Heirs Energies suggests a level of institutional maturity that is still underestimated outside the continent.
Crucially, the facility follows several years of balance sheet repair. When Heirs Energy acquired OML 17 in 2021 from Shell, Total, and Eni, the company raised approximately $1.1 billion to complete the transaction. Over nearly four years of operations, most of that amount has been repaid. The Afreximbank facility improves financial flexibility while creating room for renewed investment.
The transaction strengthens the focus on energy security, indigenous participation, and economic resilience by supporting local operators. The performance of these local operators is now central to national energy outcomes as the company have grown to account for 50–60% of production amid international company exits and ongoing challenges with power shortages, gas supply, and declining oil output.
The energy company is a significant and growing player in Nigeria’s upstream sector, currently producing over 50,000 barrels of oil per day and 120–125 million cubic feet of gas. The company employs a conservative, lower-risk growth strategy focused on optimising existing wells and improving recovery rates in its OML 17 asset, rather than on aggressive new drilling. Central to its plan is the commercialisation of gas, with all output supplied domestically to support power generation and industry, as it aims to scale production to 100,000 barrels of oil per day and 250 million cubic metres of gas in the medium term.
The company’s rapid operational turnaround sets it apart, having more than doubled production since 2021. This success is underpinned by its substantial reserves base estimated at 1.2 billion barrels of oil equivalent, and a notable achievement in drastically reducing losses from oil theft from a peak of 97% to below 15%. This improvement not only boosts its own output but also has positive implications for national revenue and investor confidence, mirroring a broader sectoral shift where indigenous firms like Seplat and Oando are taking control of assets previously held by multinationals.
For Afreximbank, the transaction aligns with its strategic mandate to support African-owned companies in sectors critical to macroeconomic stability. The bank has increasingly positioned itself as a counterweight to volatile international capital flows, particularly in energy and infrastructure.
According to Afreximbank leadership, energy stability is essential for economic balance across Africa, and several multibillion-dollar financing operations are in preparation. Supporting Heirs Energy at scale signals confidence not just in the asset, but in the governance, leadership, and execution capacity of Nigerian operators.
In 2025, Nigeria’s economy exhibits a cautious recovery and ongoing structural change, characterised by an estimated real GDP growth of 3.9–4.0% primarily driven by the services and non-oil sectors, with a reported nominal GDP of approximately ₦113.6 trillion for the third quarter; however, its dollar valuation remains challenged at roughly $285 billion nominal, contrasted with a significantly higher purchasing power parity (PPP) estimate of $2.5–2.6 trillion.
While oil’s share of GDP continues to decline, energy availability remains foundational. Manufacturing, trade, telecommunications, real estate, and digital services all depend on reliable power and gas supply. In this context, Heirs Energy’s contribution is indirect but essential: enabling growth across sectors that now drive Nigeria’s economy.
The significant socio-economic contributions in Nigeria extend far beyond its core operations in oil and gas. A key pillar is enhancing national energy security by dedicating its gas production to the domestic market, thereby supporting critical power generation and industrial activity to help alleviate a major constraint on economic growth. Furthermore, as a fully indigenous operator, the company champions local content, employing Nigerian talent and contractors at a rate exceeding 95%, which retains vital skills, income, and technical expertise within the country.
The company also demonstrates a strong commitment to sustainable and equitable development through direct community and environmental initiatives. It has established a Host Community Development Trust that provides scholarships, skills training, and infrastructure upgrades, positively impacting over 270,000 residents in Rivers State. Simultaneously, Heirs Energy aligns with national environmental goals by working to monetise previously flared gas and eliminate routine flaring, supporting Nigeria’s energy transition while improving operational standards.
Operational control was assumed ahead of schedule in July 2021. Within months, production rose sharply through well recompletions, infrastructure upgrades, and improved security collaboration. In 2023, the company rebranded from Heirs Oil & Gas to Heirs Energy, reflecting a broader focus on sustainable energy provision.
The transaction also highlights the importance of alignment between capital providers and business leadership. Afreximbank’s mandate is not simply to lend, but to catalyse African trade and productive capacity. Elumelu’s long-standing emphasis on private-sector-led development finds practical expression when institutions are willing to commit capital on this scale. When leadership philosophy and institutional purpose converge, financing becomes more patient and more strategic.
This does not mean Africa no longer needs global capital. It does. But it does suggest a recalibration. Increasingly, Africa is building the capacity to engage global markets from a position of strength, supported by domestic financial institutions that understand local risk, local opportunity, and local consequence.
The broader significance of this deal lies in what it normalises. African banks financing African companies in complex, capital-intensive sectors should not be exceptional. It should be routine. Each transaction that moves in this direction reduces dependency and increases bargaining power.
