By Ayo Olesin
Tony Elumelu’s strategic investment in Seplat Energy Plc has delivered a massive paper gain less than nine months after he acquired the oil producer’s 20.07 per cent stake, with the value of his 120.4 million shares now approaching N1.8 trillion ($1.35bn).
The surge follows another sharp rally in Seplat’s share price, which climbed to a record N14,907.80 on the Nigerian Exchange Limited on September 10 and has since held that level.
At the latest price, Elumelu’s indirect holding through Heirs Energies Limited and Heirs Holdings Limited is worth approximately N1.795 trillion, up by about N311.5 billion from the N1.484 trillion valuation at the September 1 closing price of N12,320.60.
The latest valuation represents an increase of about 21 per cent in just over two weeks, underscoring the extraordinary run in the oil producer’s shares this year.
Seplat’s 2025 annual report confirms that Heirs Energies and Heirs Holdings acquired 120.4 million shares, representing 20.07 per cent of the company, making Elumelu the ultimate beneficial owner of the stake.
The scale of the appreciation becomes clearer when measured against the acquisition cost.
On December 30, 2025, Heirs Energies and Heirs Holdings acquired the 120.4 million shares from French energy company Maurel & Prom at £3.05 per share, in a transaction valued at approximately $496 million.
The deal involved an initial payment of $248 million, with the balance secured by an irrevocable letter of credit. A further contingent payment of up to $10 million was also provided for, depending on Seplat’s subsequent share-price performance.
Seplat’s regulatory disclosures subsequently confirmed that Heirs Energies acquired 86.64 million shares while Heirs Holdings acquired 33.76 million, giving the two companies a combined 20.07 per cent stake.
At N14,907.80 per share, the holding is now worth N1.795 trillion.
Using the September 18 official exchange rate of about N1,331 to the dollar, that translates to approximately $1.35 billion.
That means the market value of the investment has increased by roughly $850 million, or about 172 per cent, from the approximately $496 million acquisition value.
Put differently, the stake is now worth roughly 2.7 times the original acquisition price in dollar terms.
The gain, however, remains unrealised because the shares have not been sold.
The investment had already more than doubled in value by August, when Seplat’s share price was around N11,200.60.
The latest appreciation has transformed Seplat into one of the strongest-performing major energy stocks on the NGX.
The shares have risen from N5,610 at the beginning of 2026 to N14,907.80, representing a gain of approximately 166 per cent year-to-date.
From N5,379 a year ago, the stock has gained about 177 per cent.
The rally has also accelerated in recent weeks. Seplat moved from N12,320.60 on September 2 to N13,552.60 on September 3 before another 10 per cent jump took it to N14,907.80 on September 10.
The stock has remained at the record level since then.
The performance comes as international energy markets have been disrupted by tensions around the Strait of Hormuz, while crude prices have remained elevated.
But Seplat’s rally predates the latest geopolitical disruption and has coincided with a substantial improvement in its operating and financial performance.
For the six months ended June 2026, Seplat reported a 74.1 per cent increase in profit before tax to N790.4 billion, compared with N454.1 billion in the corresponding period of 2025.
Revenue rose to N2.50 trillion, while production increased to 139,509 barrels of oil equivalent per day.
The company entered 2026 with a substantially enlarged production base following the consolidation of its offshore assets.
In 2025, Seplat’s reported average production rose to 131,506 barrels of oil equivalent per day, up 148 per cent from 2024, while annual revenue reached a record $2.73 billion.
The stronger operating performance has provided a fundamental backdrop to the dramatic appreciation in the company’s share price.
Seplat’s first-half revenue rose 53 per cent year-on-year, while profit after tax climbed to N225.5 billion from N42.5 billion. Average realised oil prices also rose sharply, while interest-bearing debt declined and cash balances increased.
Elumelu’s acquisition marked a significant expansion of indigenous ownership of one of Nigeria’s largest independent oil producers.
Maurel & Prom, which had been a major Seplat shareholder since the company’s formative years, exited its entire 20.07 per cent position in the December transaction.
Seplat subsequently appointed Elumelu as a non-executive director, effective January 22, 2026 and as chairman of the board, effective August.
The transaction was financed with support from African financial institutions, including Afreximbank and Africa Finance Corporation, and positioned Heirs as Seplat’s largest disclosed shareholder.
