Helios Sells Stake In Axxela, Concludes Investment In Nigeria’s Gas Market

Africa’s largest private equity firm, Helios Investment Partners, has announced the sale of its remaining 75 per cent stake in Axxela Limited, Nigeria’s leading gas infrastructure and distribution company, marking a complete exit from the country’s natural gas market after nearly a decade of investment.

The firm’s Co-founder and Managing Partner, Tope Lawani, disclosed the development during an interview with Bloomberg TV’s Jennifer Zabasajja, noting that the divestment was part of a broader strategic realignment of Helios’ investment portfolio rather than a performance-driven decision.

“We just in the last couple of weeks signed an agreement to sell one of our businesses in Nigeria, a very large business for a meaningful amount of capital,” Lawani said. “It’s in the energy transition, gas infrastructure space. For strategic reasons, we have opted to no longer invest in that sector. However, we’re very proud of that investment , we created a real champion.”

Helios’ exit brings to a close its long-standing involvement in Nigeria’s gas distribution ecosystem, which began in 2016 when the private equity firm acquired a majority stake in Oando Gas and Power, later rebranded as Axxela.

The transaction, completed in December 2016, gave Helios control of the company, with a full rebrand following in 2017.

Two years later, in 2019, Helios acquired the remaining 25 percent held by Oando Plc, making Axxela a wholly owned subsidiary.

However, Helios began to gradually reduce its holdings in 2022, when it sold 25 per cent of Axxela to Sojitz Corporation, a Tokyo-listed investment group.

That deal marked Sojitz’s first equity investment in Africa, underscoring the growing global investor interest in Nigeria’s expanding gas market.

The latest transaction represents the firm’s final exit, effectively transferring control of Nigeria’s largest private natural gas distributor to new ownership.

Founded in 2001 as Oando Gas and Power and incorporated as a standalone entity in 2004, Axxela has grown into a major player in the sub-Saharan African gas infrastructure space.

The company, through subsidiaries such as Gaslink Nigeria Limited, Gas Network Services Limited, Transit Gas Nigeria Limited, and Central Horizon Gas Company, operates over 360 kilometers of gas distribution pipelines across Lagos, Sagamu, and Port Harcourt.

Industry observers note that Helios’ decision reflects a broader recalibration among private equity investors seeking new opportunities aligned with global energy transition trends.

The exit also underscores the maturation of Nigeria’s gas infrastructure sector, which has seen increasing participation from Asian and Middle Eastern investors over the past five years.

While Helios has not disclosed the value of the transaction or the identity of the buyer, market watchers anticipate a formal announcement in the coming weeks.

The sale is expected to rank among the most significant energy infrastructure deals in West Africa this year, underscoring sustained investor confidence in Nigeria’s gas value chain despite broader macroeconomic challenges.