Nigeria's energy sector recorded a transaction value of $1.3 billion in the four days ending December 31, 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 20 percent stake in Seplet Energy PLC for $496 million, while fellow tycoon Femi Otedola sold his majority stake in Geregu Power PLC for 1.088 trillion naira (about $806 million at current rates). Gave.
Overall, the transactions represent one of the most concentrated periods of energy sector activity in Nigerian corporate history.
Also read: Nigeria's economic recovery hinges on CNG initiative, energy sector reforms – FG
Elumelu's Energy Card
The Seplet acquisition, announced on December 31, positions Heir Energy as the largest shareholder in one of Nigeria's leading independent oil and gas producers, acquiring a roster of institutional investors that includes Petroline Group with 13.77 percent, Sustainable Capital at 9.7 percent and Professional Support at 8.5 percent.
Varis Energies bought the entire 20.07 percent stake from French firm Maurel & Prome, consisting of 120.4 million ordinary shares worth 305 pence each. The binding agreement, signed on Dec. 30 after market close, provides for an initial payment of $248 million as a tranche with the balance due within 30 days, secured by an irrevocable letter of credit.
Additional contingent consideration of up to $10 million may be payable depending on Seplat's share price performance over the next six months.
“This acquisition reflects our strong confidence in Africa’s ability to own, develop and responsibly manage its strategic resources,” Elumelu said in a statement. “This is a long-term investment in the energy future of Nigeria and Africa.”
This transaction adds significant scale to Varis Energies' portfolio. Seplat has reserve 2P reserves of 1.043 billion barrels of oil equivalent through December 2024 and working interest production of 135,600 barrels of oil equivalent per day through October 2025. For a company that only began operations in 2021, the acquisition represents a huge leap in operational efficiency.
Heirs Energy already operates oil mining lease 17 in the Niger Delta, producing more than 50,000 barrels of oil and 120 million cubic feet of gas per day, with reserves of 1.5 billion barrels of oil and 2.5 trillion cubic feet of gas. Seplet's stake almost triples its exposure to Nigeria's upstream sector.
African financing takes center stage
Perhaps as important as the acquisition is how it was financed. The African Export-Import Bank and the Africa Finance Corporation provided support for the transaction, demonstrating the growing sophistication and capacity of pan-African financial institutions to support major deals traditionally financed by Western banks.
Heir Energies emphasized this point, noting that African-led financing underpins “Africa's ability to finance its own deals”, a theme consistent with Elumelu's long-standing advocacy for increased African ownership and control over the continent's resources.
Maurel & Promes chief executive Olivier de Langavant reflects on the company's 15-year journey with Seplet since becoming a founding shareholder in 2010.
“This investment has proven to be a huge success for M&P, delivering very strong returns since inception,” he said. He said the company plans to move toward more direct oil and gas asset investments.
Herbert Smith Freehills Cramer and Morgan Stanley served as legal and financial advisors to Morrell & Prohm on the transaction.
Otedola's power went out
While Elumelu expanded its energy footprint, Otedola executed a strategic withdrawal from power generation, selling its stake in Geregu Power Plc through its holding company Emperion Power Distribution Company Limited, which controlled about 80 percent of the power generators.
MA'AM Energy Limited acquired a 95 percent equity interest in Emperion in a transaction financed by a consortium of banks led by Zenith Bank PLC, effectively transferring indirect control of 77 percent of the issued share capital of Gerregu. The deal was structured as a share sale at the Emperion 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 chairman of the board and Abdulkadir Babangida Njiddah joining as a non-executive director.
Industry observers suggest that Otedola, who is Chairman of First Holdco Limited, the parent company of First Bank of Nigeria Plc, is focusing his attention on Nigeria's banking sector, where he holds a 17.01 per cent stake as the institution's largest shareholder since its 1894 establishment.
Otedola built his energy credentials through Zenon Oil, a diesel marketing company that controlled about 93 percent of Nigeria's diesel market before African Petroleum acquired and rebranded it to Forte Oil. He left that business in 2019 to focus on power generation, transforming Geregu from an 80-MW facility into a 435-MW operation.
industry implications
The wave of transactions comes as international oil majors including Shell, ExxonMobil and Chevron continue to withdraw 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 oil producer, is struggling 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 demonstrate that indigenous investors view current conditions as ripe for consolidation and strategic repositioning.
The deals also reflect differing strategic visions among Nigeria's business elite. While Elumelu has doubled down on oil and gas despite global energy transition momentum, Otedola is turning to financial services, potentially seeing Nigeria's economic future lie more in banking infrastructure than fossil fuel extraction.
