Business
Aradel Energy secures $250m financing to expand Nigerian operations
Aradel Energy raises $250m financing from Standard Bank to acquire ND Western stake, refinance loans, and expand oil and gas production in Nigeria
Aradel Energy Limited has secured a USD 250 million financing facility from Stanbic IBTC Capital Limited, Stanbic IBTC Bank Limited, and The Standard Bank of South Africa Limited to support its strategic growth agenda, including the acquisition of an additional 40% equity interest in ND Western Limited and the funding of increased production from existing assets.
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The facility also refinances Aradel Energy’s existing loan obligations.
Prior to the transaction, Aradel Energy held a 41.67% equity interest in ND Western, which has now increased to 81.67%, strengthening its upstream position in Nigeria’s oil and gas sector.
ND Western holds a 45% participating interest in OML 34 and a 50% equity stake in Renaissance Africa Energy Company Limited, the operator of the Renaissance Joint Venture and a 30% owner of one of Nigeria’s largest energy portfolios.
Following the acquisition, Aradel Energy’s indirect equity interest in Renaissance has risen to 53.3%, further consolidating the company’s market presence.
Standard Bank acted as Global Coordinator and Bookrunner, leading the structuring, execution, and funding of the facility.
Eric Fajemisin, Executive Director of Corporate and Transaction Banking at Stanbic IBTC Bank, said the transaction underscores the Bank’s role as a trusted partner supporting Aradel Energy’s growth ambitions.
Cody Aduloju, Regional Head of Energy & Infrastructure Finance, West Africa at Standard Bank, added that the deal demonstrates the Bank’s ability to deliver large-scale, tailored funding solutions for Nigeria’s fast-growing indigenous energy companies.
Adegbite Falade, Chief Executive Officer of Aradel Holdings Plc, said the acquisition strengthens Aradel Energy’s competitive positioning and reinforces its commitment to strategic growth, asset optimisation, and long-term value creation.
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The transaction highlights Standard Bank Group’s commitment to providing strategic capital to African clients, enabling sustainable value creation and supporting transformative growth in the continent’s energy sector.
President Bola Tinubu has reaffirmed the Federal Government’s commitment to rehabilitating and repositioning Nigeria’s dormant national refineries, declaring that the facilities will not be allowed to become stranded assets.
Tinubu was represented by the Permanent Secretary of the Ministry of Petroleum Resources, Mrs Patience Oyekunle, at the 20th OTL Africa Downstream Energy Week in Lagos on Monday.
The President said the government is adopting a more rigorous and commercially sustainable approach to the rehabilitation of the Port Harcourt, Warri and Kaduna refineries.
“At the same time, the government remains committed to ensuring that existing national refining assets are not allowed to become stranded investments,” the statement said.
“We are pursuing a more rigorous, commercially sustainable approach to the rehabilitation and repositioning of our refineries, supported by technical assessment, stronger partnerships, and improved operational discipline.”
The objective, according to the administration, is for Nigeria to refine more of its crude oil, create greater domestic value and become a reliable supplier of energy to Africa.
The national refineries, managed by the Nigerian National Petroleum Company Limited (NNPC), have remained largely inactive for years despite significant spending on turnaround maintenance. The NNPC has signed a memorandum of understanding with Chinese firms as part of ongoing efforts to revive the facilities.
Tinubu also noted the contribution of private refining capacity, particularly the Dangote Refinery, which has reached its 650,000 barrels-per-day nameplate capacity, in strengthening Nigeria’s prospects of becoming a net exporter of refined petroleum products.
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