Heirs Energy Clinches $750m Afreximbank Financing to Expand Oil and Gas Operations

Heirs Energy, a leading indigenous Nigerian energy company, has secured a $750 million financing facility from the African Export-Import Bank (Afreximbank), marking a major milestone in its growth strategy and reinforcing confidence in African-owned energy enterprises. The facility is expected to significantly boost the company’s oil and gas production capacity while supporting Nigeria’s drive to strengthen domestic energy supply and economic development.

The agreement was formalised at a signing ceremony attended by senior executives of both organisations, including the Chairman of Heirs Holdings, Tony Elumelu, and the President of Afreximbank, Dr George Elombi. The deal ranks among the largest single financing arrangements extended to an indigenous energy firm in Nigeria in recent years and reflects Afreximbank’s growing role in funding strategic sectors across the continent.

Under the terms of the facility, Heirs Energy plans to expand crude oil production to about 100,000 barrels per day while also scaling up gas output to meet rising domestic demand. The company currently operates Oil Mining Lease 17 (OML 17) in the Niger Delta, a key onshore asset acquired from international oil companies, and the fresh funding is expected to support further development of the asset, including drilling activities, infrastructure upgrades and production optimisation.

Speaking at the event, Elumelu described the financing as a strong endorsement of African capacity and resilience. He said the deal demonstrated that African financial institutions have developed the confidence and balance-sheet strength to support large-scale projects led by indigenous companies. According to him, the partnership reflects a shared belief that Africa must take ownership of its natural resources and industrial future.

Elumelu noted that securing the facility was the result of years of consistent performance and disciplined management, particularly in an operating environment often challenged by crude oil theft, pipeline vandalism and regulatory uncertainty. He added that trust from lenders is earned through delivery and accountability, stressing that the company understands the responsibility that comes with such significant funding.

The $750 million facility is structured as a reserve-based lending arrangement with a tenure of about five years. It will be used partly to refinance existing obligations and partly to fund new investments aimed at expanding production and strengthening operational efficiency. Heirs Energy’s management said the structure would improve the company’s financial flexibility while positioning it for long-term growth.

According to the company’s Chief Financial Officer, Samuel Nwanze, the refinancing component will help streamline the firm’s balance sheet, while the fresh capital will support organic growth and potential strategic opportunities within the sector. He said the funding would enable Heirs Energy to consolidate gains already made on OML 17 and unlock additional value from the asset.

Beyond oil production, the facility is also expected to deepen Heirs Energy’s contribution to Nigeria’s gas market. Gas remains a critical component of the country’s energy transition strategy, particularly for power generation and industrial use. Increased gas supply from indigenous producers is seen as essential to reducing electricity shortages, lowering production costs for manufacturers and improving overall economic productivity.

Industry observers say the financing aligns with national objectives to boost local participation in the oil and gas sector following the divestment of onshore assets by international oil companies. Indigenous operators like Heirs Energy are increasingly expected to fill the gap, not only by maintaining production levels but also by investing in gas infrastructure that supports domestic consumption.

For Afreximbank, the deal underscores its strategic focus on supporting Africa’s energy security and industrialisation agenda. Dr Elombi said the bank remains committed to providing catalytic capital for sectors that are central to economic stability and growth. He emphasised that the institution’s understanding of African markets places it in a strong position to back projects that deliver both commercial returns and developmental impact.

Elombi also highlighted the importance of strong partnerships between African banks and private sector operators, noting that such collaborations are critical for navigating global energy market volatility and financing large-scale projects on the continent.

Analysts say the facility sends a strong signal to investors about the viability of indigenous energy companies and the growing sophistication of African financial institutions. By mobilising substantial funding for local champions, they argue, Africa can accelerate energy development, create jobs and retain more value within its economies.

As Heirs Energy moves to deploy the funds, attention will focus on execution, production growth and the broader impact on Nigeria’s energy landscape. If successfully implemented, the investment is expected to strengthen energy supply, support industrial activity and reinforce the role of indigenous firms in shaping the future of the country’s oil and gas sector.