The funding is expected to double the indigenous producer’s crude oil output to around 100,000 barrels per day and lift gas production to approximately 250 million cubic metres, strengthening supply to Nigeria’s power and industrial sectors at a time of persistent energy shortages.
Facility structured to support expansion and refinancing
The facility was signed in Abuja and is structured as a five-year reserve-based lending arrangement, combining refinancing of existing debt with fresh capital for expansion.
It supports Heirs Energies’ upstream operations while aligning with Nigeria’s broader ambition to reduce energy imports, stabilise power supply and drive industrial growth.
Elumelu: Africa financing Africa’s future
Speaking at the signing, Chairman of Heirs Holdings, Tony Elumelu, framed the deal as evidence of growing confidence in African-owned enterprises and institutions.
“The most impactful and catalytic finance institution in Africa is Afreximbank. They have grown the capacity and the boldness to support African businesses,” Elumelu said, describing the transaction as “Africa financing Africa’s future”.
He noted that Afreximbank’s willingness to restructure facilities and provide room for expansion reflected confidence in Heirs Energies’ long-term prospects. According to him, patient capital and disciplined execution have been central to the company’s progress since acquiring Oil Mining Lease 17.
“This financing affirms the journey Heirs Energies has taken, from stabilising assets to growing production,” Elumelu said. “When institutions are willing to restructure and give companies room to grow, it shows confidence.”
Production targets and growth outlook
Heirs Energies currently produces over 50,000 barrels of oil per day and about 120 million cubic metres of gas. The new funding is designed to consolidate those gains and unlock the next phase of growth, according to Executive Director and Chief Financial Officer, Samuel Nwanze.
“This funding is designed to help us scale to about 100,000 barrels per day and 250 million cubic metres of gas,” Nwanze said.
He added that when the company acquired OML 17 from Shell, Total and Eni, it raised roughly $1.1 billion, most of which has been repaid over nearly four years of operations. Increased gas output from the asset has already boosted electricity generation across Nigeria’s eastern domestic gas network, supporting power plants including Geometric and Transcorp.
“As production grows, the impact on energy supply becomes clearer,” Nwanze said. “Our goal is to strengthen supply not only in Nigeria but across Africa.”
Reserve-based lending and refinancing structure
The facility includes refinancing of existing obligations alongside additional borrowing capacity tied to the expanded reserves base of the asset.
“Because we have grown the capacity of the assets, we are getting additional money,” Nwanze explained. “Part of it will be used for growth, while part will go towards refinancing our existing debt.”
Regulatory delays and operational challenges
Elumelu also acknowledged challenges along the company’s growth path, including regulatory delays following the acquisition of OML 17. He said approvals under the administration of former President Muhammadu Buhari took longer than expected, partly due to concerns about private ownership of a large oil asset.
“Those delays came at a real financial cost,” he said, adding that the company has continued to meet its obligations despite persistent issues such as oil theft.
Afreximbank’s mandate and confidence in Heirs Energies
For Afreximbank, the transaction fits squarely within its mandate to back African-owned companies in sectors critical to economic stability.
Speaking on behalf of the bank, President/Chairman Dr George Elombi said the institution was supporting Heirs Energies at a stage where scale, governance and reliability matter most
“We are confident in the company’s leadership, governance and asset base,” Elombi said, noting that energy remains central to economic resilience across the continent.
Focus on energy security and long-term value
With the new facility in place, Heirs Energies is entering its next phase focused on production optimisation, and it joins other Nigerian energy producers such as Seplat Energy, Aiteo Group and Oando in efforts to scale crude and gas output to strengthen supply to the power and industrial sectors at a time of persistent energy shortages.
