Seplat Energy, Nigeria’s largest indigenous oil and gas company, has appointed its biggest shareholder, Nigerian businessman and UBA Chairman Tony Onyemachi Elumelu, as its new chairman, replacing outgoing chairman Udo Udoma.
The development comes against the backdrop of Elumelu’s major investment in the company. On December 23 last year, while the country was in a festive mood, reports emerged that he had acquired a 20% stake in Seplat for $500 million. The transaction was structured with an initial payment of $248 million, while the balance was to be settled within 30 days, backed by an irrevocable letter of credit. It also included a contingent payment of up to $10 million linked to Seplat’s share price performance over a six-month period.
The deal was backed by Afreximbank and the Africa Finance Corporation, two major African financial institutions. It followed a separate $750 million facility secured by Heirs Energies, part of Elumelu’s Heirs Holdings group, aimed at strengthening operations and supporting expansion plans.
Following the acquisition, Heirs Energies effectively took over the position previously held by Maurel & Prom, the French company that had been a shareholder since Seplat was founded in 2009.
Since Elumelu’s entry into Seplat, the investment has appreciated significantly. The stake purchased for $500 million is now valued at over $1 billion, driven by a strong rally in Seplat’s share price, which has climbed to about ₦10,000 per share.
Beyond the increase in paper value, the investment has also generated substantial cash returns. On May 18, he received nearly $10 million from Seplat’s final and special dividend for the 2025 financial year, followed by another $10.84 million on June 5 from the Q1 2025 dividend. This brings his total dividend earnings for the year to around $20 million.
In just six months, the investment has more than doubled in valuation while also yielding significant payouts, reflecting a highly successful strategic bet by Elumelu and his team.
His appointment as chairman is widely seen as a move that strengthens continuity and positions Seplat for its next phase of growth, with a growing focus on gas as the company’s primary future revenue driver rather than crude oil.
There is also increasing speculation about deeper strategic alignment between Seplat and Heirs Energies in the future, although no official confirmation has been made.
Overall, the development highlights a broader example of Africapitalism in practice long-term investment, African-led ownership, and expansion in the continent’s energy sector.
