Tony Elumelu, from banking titan to pan-African investor, celebrating 14 years of Heirs Holdings
By Esther Agbo
In the dynamic landscape of African business, few figures stand as tall as Tony Elumelu, whose name has become synonymous with economic transformation and entrepreneurship on the continent. The creation of Heirs Holdings in 2010 marked a significant shift in Elumelu’s career, one that began with a directive from Nigeria’s Central Bank that could have ended his influence but instead set the stage for a much broader impact across Africa.
Elumelu’s rise in the financial sector began when he became the Managing Director of Standard Trust Bank in 1997. His leadership turned the bank into one of Nigeria’s most successful financial institutions. The highlight of his banking career came in 2005 when Standard Trust Bank merged with United Bank for Africa (UBA). As the Group Managing Director of UBA, Elumelu spearheaded its expansion into 20 African countries, transforming the bank into a pan-African financial institution.
But in 2009, Elumelu’s journey in the banking sector took an unexpected turn. The Central Bank of Nigeria, under Governor Sanusi Lamido Sanusi, introduced reforms aimed at stabilising the banking industry in the aftermath of the global financial crisis. Among these reforms was a directive that required all bank Managing Directors who had served for ten years or more to step down. Having led UBA for 13 years, Elumelu was among the executives affected by this policy, leading to his resignation in 2010.
Rather than marking the end of his influence, Elumelu’s departure from UBA was the beginning of a new chapter. Seizing the opportunity to expand his horizons, Elumelu founded Heirs Holdings, a pan-African investment company.
In the heart of Africa’s burgeoning economic landscape, one name stands out as a beacon of visionary leadership and transformative ambition, Heirs Holdings.The company was built on the principles of “Africapitalism,” a philosophy that Elumelu coined, which emphasises the role of the private sector in driving economic and social development in Africa.
Heirs Holdings quickly grew into a diversified conglomerate with investments across critical sectors such as energy, real estate, healthcare, hospitality, and financial services.
The company operates across 23 countries, primarily within Africa, making it one of the most influential investment companies on the continent. Its diverse portfolio spans several critical sectors, including financial services, power generation, oil and gas, real estate, hospitality, and healthcare. Through these strategic investments, Heirs Holdings is actively contributing to the diversification and resilience of Africa’s economy.
One of the crown jewels of Heirs Holdings’ portfolio is the United Bank for Africa (UBA), one of the largest financial institutions in Africa. UBA serves over 20 million customers across 20 African countries, as well as in the United States, the United Kingdom, and France. The bank’s expansive reach and robust financial services make it a cornerstone of Heirs Holdings’ influence in the financial sector.
Beyond banking, Heirs Holdings has also made significant inroads into the energy sector through its investment in the Transcorp Group, which operates in power generation, hospitality, and energy. Transcorp Power, one of its subsidiaries, is one of Nigeria’s largest power generation companies, playing a pivotal role in addressing the country’s energy deficit, a critical factor in driving economic growth.
The company’s approach was strategic and deliberate, focusing on sectors with the potential to transform Africa’s economy.
This vision was clearly articulated during the company’s 14-year celebration on the 28th of August, 2024, where key executives reflected on the journey from its humble beginnings to becoming a major player in the African business landscape.
The success of Heirs Holdings is a testament to Elumelu’s ability to translate vision into reality.
The Executive Director and Chief Financial Officer of Heirs Oil & Gas, Samuel Nwanze, highlighted how the company started with just two investing companies, growing to 17 companies over the years, with a total of 44 subsidiaries. This growth is not just in numbers but in impact, with the company playing a significant role in sectors like power generation, oil and gas, and financial services.
He said, “When we started this organisation about 14 years ago, we were quite small and we were operating from a building on Glover Road.
“In the last 14 years, we’ve transformed from two companies to 17 companies, out of which seven of them are quoted on the Nigeria Stock Exchange. And out of those 17 companies I mentioned, I’m not even counting the other subsidiaries that these companies have formed, If I were to do that, we actually have somewhere around 44 companies that this company has created, that has emerged right from two companies when we started in 2010.
“The other thing to mention, if you look at those companies itself in terms of the value that has been created, we’ve grown value in those companies in terms of capitalisation of those companies by 4,140 per cent in the last 14 years.”
Nwanze’s reflection on the company’s journey emphasised the importance of execution, a theme that resonates throughout Heirs Holdings’ history. From doubling oil production in their OML 17 asset to significantly increasing the capitalization of their companies by over 4,000%, Heirs Holdings has demonstrated an unparalleled commitment to achieving its strategic goals.
Elumelu believes that African businesses should take the lead in addressing the continent’s challenges, from infrastructure deficits to unemployment. His approach advocates for investments that not only yield financial returns but also generate widespread social benefits. This dual focus on profit and purpose is what sets Heirs Holdings apart in the African business landscape.
At the core of Heirs Holdings’ operations is the belief in Africapitalism. This philosophy drives the company’s investments and its approach to business. The President and Group CEO of Transnational Corporation Plc (Transcorp), a subsidiary of Heirs Holdings, Owen Omogiafo, spoke about the company’s impact on Nigeria’s power sector. Transcorp’s investments account for about 15 per cent of Nigeria’s power generation, demonstrating how Heirs Holdings is not just in business for profit but for creating lasting change.
“Through our investment in power, today we account for about 15 per cent of Nigeria’s power generation.
“With our investment in distribution, we actually cover a landscape of over 130,000 square kilometers. To put this in context, because of where we are based, Lagos State in terms of square kilometers is less than 10,000. So now take that into the 130,000 plus square kilometers that we cover.
“Showing what we are doing in driving power. Recognizing that power is critical to the economic transformation of not just Nigeria, but the entire world when you look at it,” Omogiafo stated.
This commitment to social impact is also evident in Heirs Holdings’ approach to community engagement. Osayande Igiehon, Managing Director/CEO of Heirs Oil & Gas, shared how the company has redefined its relationship with host communities, shifting from conflict to partnership. This approach aligns with Elumelu’s broader vision of using business as a force for good.
“We operate about 5 per cent of Nigeria’s oil production, and about 5 per cent of Nigeria’s domestic gas production and supply. In addition to that, I also oversee Heirs Holdings Group’s oil and gas portfolio.
“Our vision is to build an integrated energy business that uniquely addresses Africa’s energy needs, and the execution of this vision has started well over 10 years ago,” Osayande remarked.
Africa’s economic history has often been characterised by a reliance on natural resources, particularly oil and minerals. However, Elumelu recognised the need for a more diversified and sustainable economic model. Heirs Holdings was created to invest across various sectors, thereby reducing the continent’s dependency on a single industry and fostering economic resilience.
One of the core goals of Heirs Holdings is job creation and economic empowerment. By investing in businesses with high growth potential, the company stimulates job creation, fosters entrepreneurship, and improves living standards across Africa. This approach is particularly evident in the healthcare and real estate sectors, where Heirs Holdings is driving development projects that not only generate economic value but also improve the quality of life for African communities.
One of Africa’s most significant challenges is the lack of infrastructure, particularly in energy and transportation. Recognising this, Heirs Holdings has made strategic investments in infrastructure projects that are crucial for the continent’s economic growth. Transcorp Power, for instance, is not only a key player in Nigeria’s power sector but also a critical driver of economic activity, as reliable electricity is fundamental to industrialization and overall development.
Today, Heirs Holdings stands as a model for what can be achieved through strategic vision, resilience, and a deep commitment to Africa’s development. The company’s success over the past 14 years reflects not only Elumelu’s business acumen but also his dedication to transforming Africa through investments that create both economic value and social impact.
As the company continues to grow, its legacy is one of inspiration, a story of how African business leaders can drive the continent’s development by daring to dream big and execute boldly. Tony Elumelu’s journey from a bank MD to the founder of a pan-African investment company is not just a personal success story, it is a blueprint for how the private sector can shape the future of Africa.
