Barbara Bako/Leah Katung-Babatunde, Abuja
Chairman of Heirs Holdings and Founder of the Tony Elumelu Foundation, Mr. Tony Elumelu, has credited the African Export-Import Bank (Afreximbank) with playing a catalytic role in Africa’s development, noting that the bank’s timely intervention in strategic private sector transactions has continued to transform the continent’s economic landscape.
Elumelu made this during an interview session at the 32nd Annual Meetings of the Afreximbank on Friday in Abuja with the theme: “Building the Future on Decades of Resilience”.
He said, “We are going to talk about Africa planning, which is the primary role in developing the continent. Without their intervention, we would not have been able to do the transaction. Today, this acquisition we made with the support of Afreximbank has gone on to become extremely transformative, not just for us investors, but for the continent.”
According to him, the $600 million financing led by the continent’s multilateral lender alongside other financial institutions—enabled the acquisition of vital oil assets, which has since led to the production of over 58,000 barrels of oil per day.
He said “In fact, NNPC just wrote to the company. We are the highest production, recorded the highest production increase in the Niger oil sector, both for local and national oil companies in the past five years.”
While emphasising that the impact of such transactions extends beyond balance sheets, Elumelu was emphatic about key ingredients necessary to replicate the group’s success story across the continent,“The most important thing is capital. Capital is the most important thing. And of course, the private sector… We must not burn bridges, he said.”
The businessman called on entrepreneurs to show financial discipline and integrity when supported: “When you’re supported by financial institutions like Afreximbank supported us, you must honor your obligation, you must pay, you must also help to create employment in the process.”
Reflecting on his company’s operations, Elumelu noted that beyond increasing oil output, they have also become a key player in domestic gas injection, especially in Eastern Nigeria. “We are the biggest gas injectors in the local domestic gas market for eastern Niger. That is helping companies east of Niger to industrialize, to fire their producers into power generation, to improve their electricity generation.”
He described Afreximbank’s interventions as more than financial transactions saying, “To Afrexim, they don’t write a cheque. But to the private sector, to the country, to the continent, it’s more than writing a cheque. It’s about catalyzing development.”
Elumelu also touched on the evolving investment environment across Africa, appreciating recent improvements.
He said, “We are beginning to see governments that understand business and governments that do not feel threatened by business. Because what is good for business is good for the citizens.”
While praising the current administrations, he was candid about past experiences: “In Nigeria, for instance, I told you we cooked a transaction to provide a billion dollars. The government of the day said no. It spoiled it. It killed it.”
On how Africa can benefit from global market volatility, Elumelu was optimistic: “Africa is ready for business. What is important is to let it come alive. But I would again go back to what institutions like Afrexim are doing. Afrexim is actually helping to catalyze the development of our country.”
He also underscored the importance of strong financial institutions, a responsible private sector, and enabling policies in building a prosperous continent. “We need solid financial institutions to support the dreams and aspirations of the private sector… Believe us. But more importantly, have the discipline to service and repay your loans.”
Speaking on youth empowerment, Elumelu stressed the need for inclusion. “We must not climb and take the ladder out. We must deliberately and consciously think of the next generation.”
He noted that his foundation, the Tony Elumelu Foundation, has provided over 21,000 young Africans with non-refundable seed capital of $5,000 each, and trained over a million others through its digital entrepreneurship platform.
Asked what he would want his legacy to be, Elumelu responded: “As someone who helped to create prosperity for others. As someone who helped to empower others. That’s what we do at the Tony Elumelu Foundation.”
He also warned against missing out on the digital revolution: “We can’t miss the fourth. And for us not to miss the fourth, digital connectivity and access is so critical.” However, he stressed that AI and digital transformation require reliable electricity: “You cannot develop a continent without electricity. AI and all the other things… cannot happen if we don’t face electricity.”
Elumelu concluded with a clear call for collaboration: “We need a private sector, a strong private sector, and a pipeline of entrepreneurs… so we can grow the economy. So, for Africa to rise, we need to change those basic things.”
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