Elumelu Reveals How Buhari and Kyari Blocked $2.5bn Oilfield Deal and Decries $7.5bn Loss to Oil Thieves

Interview with Financial Times, Tony Elumelu, Chairman of Heirs Holdings and UBA Group Plc, shed light on a significant setback he faced in his pursuit of acquiring a $2.5 billion oilfield. Elumelu revealed that former President Muhammadu Buhari and his late Chief of Staff, Abba Kyari, obstructed the deal, which he had been eyeing since 2017.

Elumelu’s ambition to transform Heirs Holdings into a Fortune 500 company drove his interest in the oil sector. He explained that achieving this goal required substantial investment in energy, crucial for a nation struggling with electricity shortages.

Despite raising $2.5 billion to purchase the oilfield, Elumelu disclosed that the deal was blocked by Buhari and Kyari. According to him, they argued that such a strategically important asset should not fall into private hands, even though the acquisition was from a foreign company.

Elumelu’s frustration extends beyond the failed acquisition. He also expressed deep concern over the rampant oil theft affecting his operations. Heirs Energies’ oilfield, which produces 42,000 barrels daily, suffers a staggering 18 percent loss due to theft.

Elumelu criticized the Nigerian government and security agencies for their inadequate response to the theft, comparing it unfavorably to the swift action taken in other countries. He called for more effective measures to combat oil theft and safeguard national resources.

This disclosure highlights the ongoing challenges in Nigeria’s oil sector and the urgent need for improved security and transparency.