Chairman of United Bank for Africa (UBA) and President of The Tony Elumelu Foundation (TEF), Mr. Tony Elumelu, The foundation of leading philanthropy empowering young African entrepreneurs across all 54 African countries has highlighted the transformative power of African-led investments, sharing a personal success story of how strategic collaboration with Afreximbank helped unlock one of Nigeria’s most significant energy deals.
Speaking during an event hosted by Afreximbank, Elumelu praised the bank’s leadership under Professor Benedict Oramah and welcomed participants as the Group Chairman of Transcorp, the venue’s host. He reflected on how Africapitalism—an economic philosophy promoting private sector-driven development—continues to reshape Africa’s economic landscape.
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Elumelu shared how his group made a bold move in 2010 to diversify into the energy sector, recognizing the critical role energy plays in Africa’s industrialization. By 2017, his company identified Shell’s oil blocks—OML 11 and OML 17—as high-potential assets. Negotiations began, and while Shell eventually agreed to the $2.5 billion deal, it came with a major condition: proof of financial capacity.
Despite mobilizing significant internal resources, there was still a funding gap of $750 million. This prompted the group to approach African financial institutions for support.
“Afreximbank and the Africa Finance Corporation (AFC) stepped up at a critical moment. Afreximbank committed $600 million, while AFC contributed $150 million. What stood out was not just the size of the commitment, but the speed and confidence with which they acted,” Elumelu recounted.
Thanks to this support, the transaction was concluded in 2020—despite the disruptions caused by the COVID-19 pandemic. The acquisition has since become one of Nigeria’s most impactful oil deals. Today, the asset produces around 58,000 barrels of oil per day. Recently, the Nigerian National Petroleum Company (NNPC) recognized the company for achieving the highest oil production growth in Nigeria’s upstream sector over the last five years—surpassing both local and international operators.
“This would not have been possible without Afreximbank’s intervention,” Elumelu said. “This is Africapitalism in practice—African institutions backing African entrepreneurs to create jobs, drive industrialization, and build prosperity for our people.”
Although the final financial close saw Afreximbank disburse $250 million—after additional financiers joined the deal—the transaction remains a shining example of what African collaboration can achieve.
Elumelu’s story underscores the role of Africa’s private sector and financial institutions in charting the continent’s development, showing that transformative change comes from within.
“This is how we build the Africa we want—by investing in ourselves and working together to unlock our potential,” he concluded.
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