Chairman Heirs Holdings and one of Africa’s most influential businessmen, Tony Elumelu, has made a startling revelation about a significant deal he was unable to close due to political interference.
Elumelu, the former Chief Executive of UBA, told Financial Times’ Aanu Adeoye, disclosed that former President Muhammadu Buhari and his late Chief of Staff, Abba Kyari, blocked his attempt to purchase a strategic oilfield.
The oilfield in question was part of Elumelu’s ambitious plan to expand his investments in Nigeria’s energy sector.
Elumelu, known for his involvement in banking and various sectors through his investment company Heirs Holdings, revealed this information during a candid interview.
The disclosure sheds light on the complexities and challenges faced by private investors in Nigeria’s oil industry.
He first garnered attention in the 1990s when he led a successful takeover of Crystal Bank, later renamed Standard Trust Bank. His leadership and strategic acumen played a pivotal role in stabilizing the bank, which eventually merged with United Bank for Africa (UBA) in 2005.
Elumelu’s business portfolio is extensive, covering financial services, oil and gas, power generation, and more.
Despite his success in various sectors, the oil industry remains a focal point of his interests.
This ambition took a hit when he tried to acquire a 45% stake in an oilfield, an endeavor that was thwarted by political figures.
However, Elumelu claims that his attempt to acquire the asset was obstructed by former President Buhari and Abba Kyari.
According to Elumelu, they were told that Nigeria could not allow such a strategic asset to fall into private hands, despite the fact that the sale was from a foreign company.
Elumelu’s assertion suggests that political decisions can significantly impact investment opportunities, especially in sectors deemed crucial to national interests.
Elumelu’s troubles did not end with the blocked acquisition.
In 2022, he publicly criticized the government’s failure to address rampant theft, which resulted in the loss of over 95% of his oil production.
Despite these challenges, Elumelu remains optimistic about his investments.
He reports that his current production levels stand at 42,000 barrels of crude oil per day, although theft still affects about 18% of the output.
the need for improved governance and security in Nigeria’s oil sector, as well as the importance of creating a conducive environment for private investment.
As Nigeria navigates its economic difficulties and strives for development, the experiences and perspectives of influential figures like Tony Elumelu provide important lessons on overcoming challenges and driving progress.
