Tony Elumelu, Chairman of Heirs Holdings and United Bank for Africa Plc, revealed in an interview with The Financial Times how former President Muhammadu Buhari and his late Chief of Staff, Abba Kyari, obstructed his attempt to acquire an oil field in 2017. Elumelu explained that Heirs Holdings had secured $2.5 billion for the purchase but was told that Nigeria could not allow such a strategically important asset to be owned by a private operator, despite the fact that it was being sold by a foreign company.
Elumelu surprised many in 2021 when Heirs Holdings acquired a 45% stake in OML 17, an onshore oil field, as part of a deal that included $1.1 billion in financing from various global and regional banks and investors. This acquisition was part of a broader trend of international oil companies like Shell, Total, and Eni selling off their shallow water assets in Nigeria, with local companies taking over.
OML 17 has a production capacity of 27,000 barrels of oil equivalent per day and estimated reserves of 1.2 billion barrels of oil equivalent.
Elumelu also discussed the challenges he faced after acquiring the oil field, particularly the significant losses due to oil theft. In 2022, he publicly expressed his frustration on social media, stating that over 95% of their oil production was being stolen.
Despite these challenges, he noted that business has improved, with 42,000 barrels of crude being pumped daily, although theft still accounts for about 18% of production.
When asked about who is responsible for oil theft in the country, Elumelu suggested that the government should know and inform the public, likening the situation to how security agencies in the U.S. quickly identified the background of a person who shot at former President Donald Trump.
Elumelu emphasized the importance of Africa’s private sector in driving the continent’s growth, advocating for a governance approach in which governments operate like businesses and are held accountable, similar to how shareholders hold CEOs accountable.
Reflecting on his career, Elumelu shared that he had a rapid rise, becoming a bank branch manager at the age of 26 after earning a master’s degree in economics from the University of Lagos. He led UBA for five years until a central bank ruling in 2010 forced out long-serving bank leaders, a move that initially shocked him but ultimately liberated and catalyzed his career.
He then founded Heirs Holdings, marking the second phase of his career and transitioning from a banker to a multi-sector magnate.
Elumelu acknowledged his responsibility as a role model for young Africans, emphasizing that he strives not to disappoint those who look up to him. He also spoke about Nigeria’s current economic struggles, stressing that while it is easy to dwell on failures, his philosophy of “Africapitalism” calls for the private sector to take proactive steps to improve society.
As a member of President Bola Tinubu’s presidential economic advisory committee, Elumelu is closely aligned with the administration. He supports the economic reforms initiated by Tinubu, though he questioned whether the removal of fuel subsidies and the sharp devaluation of the Naira could have been better timed to provide a safety net for vulnerable Nigerians.
Finally, Elumelu expressed his support for skilled young Nigerians seeking opportunities abroad, acknowledging the challenges they face at home but encouraging those who remain to make a positive impact and build a lasting legacy.
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