Nigeria’s energy sector recorded transactions valued at $1.3 billion within four days ending December 31, marking one of the most active deal-making periods the industry has witnessed in several years.

The flurry of transactions, which took place between December 29 and December 31, featured billionaire investor Tony Elumelu’s Heirs Energies Limited acquiring a significant 20 percent stake in Seplat Energy Plc for $496 million, while another prominent businessman, Femi Otedola, divested his majority interest in Geregu Power Plc for 1.088 trillion naira, equivalent to about $806 million at prevailing exchange rates.

Combined, the transactions represent one of the most concentrated bursts of energy sector activity in Nigeria’s corporate history.

The Seplat transaction, announced on December 31, elevated Heirs Energies to the position of largest shareholder in one of Nigeria’s leading independent oil and gas producers, surpassing institutional investors such as Petrolin Group with a 13.77 percent holding, Sustainable Capital with 9.7 percent, and Professional Support, which owns 8.5 percent.

Heirs Energies acquired the full 20.07 percent stake from French energy firm Maurel & Prom, consisting of 120.4 million ordinary shares priced at 305 pence each. The binding agreement was signed on December 30 after the close of market trading and provides for an initial payment of $248 million, with the outstanding balance payable within 30 days and secured by an irrevocable letter of credit.

The agreement also includes a contingent consideration of up to $10 million, subject to 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 acquisition significantly expands Heirs Energies’ operational scale. Seplat reported 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 began operations only in 2021, the deal represents a major leap in capacity and market presence.

Heirs Energies already operates Oil Mining Lease 17 in the Niger Delta, producing more than 50,000 barrels of oil per day alongside 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 acquisition nearly triples the company’s exposure to Nigeria’s upstream oil and gas sector.

Beyond the acquisition itself, attention has also focused on its financing structure. The African Export-Import Bank and the Africa Finance Corporation provided financial backing, highlighting the growing ability of pan-African financial institutions to support large-scale transactions historically funded by Western lenders.

Heirs Energies underscored the significance of the African-led financing, noting that it demonstrates “Africa’s capacity to finance its own deals,” a position aligned with Elumelu’s long-standing advocacy for greater African ownership and control of the continent’s natural resources.

Olivier de Langavant, chief executive of Maurel & Prom, reflected on the company’s long association with Seplat, which began when it became 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 company intends to redirect its focus toward more direct investments in oil and gas assets.

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

While Elumelu expanded his footprint in the energy sector, Otedola moved in the opposite direction by exiting power generation. He sold his stake in Geregu Power Plc through his holding company, Amperion Power Distribution Company Limited, which previously controlled nearly 80 percent of the power generation firm.

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

The sale led to immediate leadership changes at Geregu Power Plc, with Senator Abdul-Aziz Abubakar Yari appointed as board chairman in place of Otedola, while Abdulkadeer Babangida Njiddah joined the board as a non-executive director.

Industry analysts suggest that Otedola, who serves as chairman of First Holdco Limited, the parent company of First Bank of Nigeria Plc, is consolidating his interests in the banking sector, where he holds a 17.01 percent stake as the institution’s largest shareholder since its establishment in 1894.

Otedola initially built his reputation in the energy market through Zenon Oil, a diesel marketing company that once controlled about 93 percent of Nigeria’s diesel supply, before acquiring and rebranding African Petroleum as Forte Oil. He exited the downstream oil business in 2019 to focus on power generation, subsequently transforming Geregu from an 80-megawatt, run-down facility into a 435-megawatt plant.

The recent wave of transactions comes amid the continued withdrawal of international oil majors such as Shell, ExxonMobil and Chevron from onshore Nigerian operations, opening acquisition opportunities for domestic firms prepared to navigate the country’s complex operating environment.

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

The deals involving Heirs Energies and Geregu Power indicate that indigenous investors increasingly view current market conditions as favourable for consolidation and strategic repositioning.

They also highlight contrasting strategic approaches among Nigeria’s leading business figures, with Elumelu deepening his commitment to oil and gas despite global energy transition pressures, while Otedola pivots toward financial services, suggesting a belief that Nigeria’s long-term economic growth may be anchored more in banking infrastructure than fossil fuel production.