Africa’s largest private equity firm, Helios Investment Partners, has hinted at a complete exit from Axxela, Nigeria’s leading gas infrastructure company. The firm disclosed that it has agreed to sell its remaining 75 percent stake in the company, marking the end of its nearly decade-long involvement in Nigeria’s natural gas distribution space.
The announcement came from Tope Lawani, Co-founder and Managing Partner of Helios Investment Partners, during an interview with Bloomberg TV’s Jennifer Zabasajja.
“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. Offering clues about the transaction, he added, “It’s in the energy transition, gas infrastructure space.”
Lawani noted that Helios’ decision was strategic rather than performance-driven.
“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.”
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Axxela’s journey reflects the evolution of Nigeria’s gas infrastructure sector. Formerly known as Oando Gas and Power, the company was founded in 2001 and incorporated as a standalone entity in 2004. In December 2016, Helios acquired a majority equity stake, leading to a full rebrand in 2017 under the Axxela name. Two years later, in 2019, Helios completed its acquisition of Oando’s remaining 25 percent, becoming the company’s sole owner.
That control, however, began to shift again in 2022, when Helios sold a 25 percent stake to Sojitz Corporation, a Tokyo-listed investment company. The transaction marked Sojitz’s first-ever equity investment in Africa, signaling growing global investor interest in Nigeria’s gas market.
The latest divestment marks a new chapter for Axxela, and possibly, a changing of hands in one of West Africa’s most strategic energy assets. While Helios has yet to disclose the buyer, observers are seeking clues on which entity will take control of Nigeria’s largest private natural gas distributor.
Over the years, Axxela has expanded its footprint through subsidiaries such as Gaslink Nigeria Limited, Gas Network Services Limited, Transit Gas Nigeria Limited, and Central Horizon Gas Company. Together, these companies manage more than 360 kilometers of gas distribution pipelines across Lagos, Sagamu, and Port Harcourt.