Detty December Power Plays

Major Moves in the Nigerian Energy Sector last December

December 2025 was a busy month in Nigeria, both on the party scene and in the energy sector. Tony Elumelu’s Heirs Holdings acquired a 20 per cent stake in Seplat Energy, Femi Otedola exited Geregu Power, Transgrid Enerco closed a ₦360 billion deal for Eko Disco, and Aradel Holdings consolidated its position in ND Western to 81.67 per cent. These transactions happened against the backdrop of a policy environment that has begun to address long-standing structural issues. The government recently launched the Presidential Power Sector Debt Reduction Programme, issuing ₦590 billion in bonds to clear arrears owed to generation companies (GenCos) like Geregu and gas suppliers, restoring liquidity and confidence in the market. At the same time, the Nigerian Upstream Petroleum Regulatory Commission approved 28 firms to commercialize flared gas across 49 sites, unlocking an estimated $2 billion in investment potential and creating room for 3GW of additional power generation. To cap it off, the 2025 Oil and Gas Licensing Round opened with a deliberate tilt towards gas assets, reinforcing Nigeria’s Decade of Gas agenda and signalling a shift towards cleaner energy sources. These reforms, combined with electricity tariff rationalisation and streamlined approvals, created conditions for investors to move aggressively before year-end.

SO WHAT?
The Heirs Holdings acquisition of Seplat’s 20 per cent stake was supported by a $750 million facility from the African Export-Import Bank. The funding structure is important because it shows the increasing capacity of African institutions to finance the continent’s development.

These deals matter because they provide indications of what a well-developed capital base, coupled with the right policy, can look like for Africa (a.k.a the good governance and smart economic policy we lament in every other article). For years, Nigeria’s energy sector was trapped in a cycle of underinvestment and uncertainty, with liquidity constraints and regulatory opacity deterring serious commitments. December shows indications that deliverance from this pattern is possible (somebody shout ‘power’). By clearing debts and enabling gas monetisation, the government reduced risk premiums and made the sector bankable again. This is important because gas is now the centrepiece of Nigeria’s energy narrative; every major deal in December had a gas angle, whether in reserves, processing or power generation. Indigenous players like Heirs, Seplat and Aradel are scaling aggressively, positioning themselves as dominant forces in a market that could attract foreign capital if reforms hold.

The Afreximbank facility adds another layer to the story with regional capital actively financing transformative deals, which could reshape the funding landscape for African energy projects. In a world where global capital is increasingly selective and where African projects often struggle to compete for attention. If regional banks continue to step in, Nigeria’s energy sector could see a new era of financing resilience.

But continuity is the real test. If debt bonds continue and tariff reforms stick, 2026 could see a wave of consolidation and infrastructure investment, particularly in midstream gas processing and pipelines. Ultimately, these moves underscore a simple truth: policy signals shape markets, and when they align with capital, transformation happens fast. The question now is whether Nigeria can sustain this momentum long enough to turn a flurry of deals into a structural shift for its energy future.