Nigeria’s energy sector attracts $1.3bn in four days

Nigeria’s energy sector has recorded $1.3 billion in transaction value over four days ending December 31, marking one of the most active periods for the industry in years

The deal-making spree, which unfolded between December 29 and December 31, saw billionaire Tony Elumelu’s Heirs Energies Limited acquire a commanding 20 percent stake in Seplat Energy Plc for $496 million, while fellow tycoon Femi Otedola divested his majority holding in Geregu Power Plc for 1.088 trillion naira (approximately $806 million at current rates).

Together, the transactions represent one of the most concentrated periods of energy sector activity in Nigerian corporate history.

Read also: Nigeria’s economic recovery hinges on CNG initiative, energy sector reforms – FG

The Seplat acquisition, announced December 31, positions Heirs Energies as the largest shareholder in one of Nigeria’s premier independent oil and gas producers, eclipsing a roster of institutional investors that includes Petrolin Group with 13.77 percent, Sustainable Capital at 9.7 percent, and Professional Support holding 8.5 percent.

Heirs Energies purchased the entire 20.07 percent stake from French firm Maurel & Prom, comprising 120.4 million ordinary shares valued at 305 pence each. The binding agreement, signed December 30 after market close, structures payment as an initial $248 million tranche with the remaining balance due within 30 days, secured by an irrevocable letter of credit.

An additional contingent consideration of up to $10 million may become payable based on Seplat’s share price performance over the next six months.

“This acquisition reflects our strong belief in Africa’s ability to own, develop, and responsibly manage its strategic resources,” Elumelu said in a statement. “It is a long-term investment in Nigeria’s and Africa’s energy future.”

The transaction adds significant scale to Heirs Energies’ portfolio. Seplat maintains 2P reserves of 1.043 billion barrels of oil equivalent as of December 2024 and working interest production of 135,600 barrels of oil equivalent per day as of October 2025. For a company that only commenced operations in 2021, the acquisition represents a quantum leap in operational capacity.

Heirs Energies already operates Oil Mining Lease 17 in the Niger Delta, producing over 50,000 barrels of oil daily and 120 million cubic feet of gas, with reserves exceeding 1.5 billion barrels of oil and 2.5 trillion cubic feet of gas. The Seplat stake nearly triples its exposure to Nigeria’s upstream sector.

Perhaps equally significant as the acquisition itself is how it was financed. The African Export-Import Bank and Africa Finance Corporation provided backing for the transaction, demonstrating the growing sophistication and capacity of pan-African financial institutions to support major deals traditionally financed by Western banks.

Heirs Energies emphasised this point, noting the African-led financing underscores “Africa’s capacity to finance its own deals”, a theme consistent with Elumelu’s long-standing advocacy for increased African ownership and control of continental resources.

Olivier de Langavant, chief executive of Maurel & Prom, reflected on the company’s 15-year journey with Seplat since becoming a founding shareholder in 2010.

“This investment has proven to be a great success for M&P, delivering very strong returns since inception,” he said, adding that the firm plans to pivot toward more direct oil and gas asset investments.

Herbert Smith Freehills Kramer and Morgan Stanley served as legal and financial advisers to Maurel & Prom on the transaction.

While Elumelu expanded his energy footprint, Otedola executed a strategic withdrawal from power generation, selling his stake in Geregu Power Plc through his holding company Amperion Power Distribution Company Limited, which controlled nearly 80 percent of the electricity generator.

MA’AM Energy Limited acquired 95 percent equity interest in Amperion in a transaction financed by a consortium of banks led by Zenith Bank Plc, effectively transferring indirect control of 77 percent of Geregu’s issued share capital. The deal was structured as a share sale at the Amperion level, leaving Geregu’s direct shareholding structure on the Nigerian Exchange unchanged.

The transaction triggered immediate leadership changes at Geregu, with Senator Abdul-Aziz Abubakar Yari replacing Otedola as board chairman and Abdulkadeer Babangida Njiddah joining as a non-executive director.

Industry observers suggest Otedola, who chairs First Holdco Limited, parent company of First Bank of Nigeria Plc, is consolidating his focus on Nigeria’s banking sector, where he holds a 17.01 percent stake as the institution’s largest shareholder since its 1894 establishment.

Otedola built his energy credentials through Zenon Oil, a diesel marketing company that once controlled approximately 93 percent of Nigeria’s diesel market, before acquiring and rebranding African Petroleum to Forte Oil. He exited that business in 2019 to concentrate on power generation, transforming Geregu from a run-down 80-megawatt facility to a 435-megawatt operation.

The transaction wave comes as international oil majors, including Shell, ExxonMobil, and Chevron, continue withdrawing from onshore Nigerian operations, creating acquisition opportunities for domestic companies willing to navigate the country’s complex operating environment.

Nigeria, despite being Africa’s largest crude producer, has struggled to attract foreign investment amid regulatory uncertainty, security challenges in oil-producing regions, and delays in implementing comprehensive petroleum industry reforms.

The Heirs Energies and Otedola transactions suggest indigenous investors view current conditions as opportune for consolidation and strategic repositioning.

The deals also reflect divergent strategic visions among Nigeria’s business elite. While Elumelu doubles down on oil and gas despite global energy transition momentum, Otedola pivots toward financial services, potentially anticipating Nigeria’s economic future lies more in banking infrastructure than fossil fuel extraction.

Dipo Oladehinde is a skilled energy analyst with experience across Nigeria's energy sector alongside relevant know-how about Nigeria’s macro economy.

He provides a blend of market intelligence, financial analysis, industry insight, micro and macro-level analysis of a wide range of local and international issues as well as informed technical rudiments for policy-making and private directions.

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