Afreximbank has approved a $64 million financing facility for Levene Energy to acquire a strategic equity stake in Axxela Limited, one of Nigeria's largest gas distribution companies.
The transaction underscores the deepening role of private capital in Africa's gas infrastructure, at a moment when energy security concerns and industrial demand are both on the rise.
The deal highlights how development finance is increasingly supporting domestic energy networks rather than export-only projects.
Afreximbank Backs Nigeria Gas Expansion
The African Export-Import Bank (Afreximbank) has approved a $64 million financing facility for Levene Energy to acquire a strategic equity stake in Axxela Limited, a Nigerian gas distribution and infrastructure company.
The facility, announced in January 2026, is expected to support the expansion of gas distribution networks across Nigeria and other African markets, strengthening energy supply for industries, households, and power generation.
According to Afreximbank, the transaction aligns with its mandate to support intra-African trade, industrial development, and energy security through targeted financing for infrastructure projects.
What the Deal Involves
Levene Energy, a pan-African energy investment firm, will use the $64 million facility to acquire a significant minority stake in Axxela Limited.
Axxela operates gas processing, transportation, and distribution infrastructure that supplies energy to manufacturing, commercial, and power-generation clients in Nigeria.
The transaction is structured as a debt facility, though Afreximbank did not disclose the tenor, interest rate, or repayment terms.
Afreximbank stated that the financing supports its strategy of backing private-sector operators that expand domestic energy access rather than focusing solely on export-oriented projects.
Key Transaction Details
| Item | Detail |
|---|---|
| Lender | Afreximbank |
| Facility size | $64 million |
| Borrower | Levene Energy |
| Target company | Axxela Limited |
| Purpose | Strategic equity acquisition |
| Sector | Gas distribution & infrastructure |
The bank did not provide a detailed timeline for completion but confirmed the transaction has been approved.
Why Gas Infrastructure Matters
Nigeria holds one of the largest natural-gas reserves in Africa, yet domestic gas utilisation remains constrained by limited infrastructure, weak distribution networks, and pricing challenges.
Axxela's assets include gas processing facilities, pipelines, and distribution systems that supply energy to:
- Industrial manufacturers
- Commercial users
- Power-generation companies
By backing Levene Energy's entry into Axxela, Afreximbank is effectively supporting:
- Expansion of domestic gas supply
- Improved energy reliability for industries
- Reduced dependence on diesel and fuel oil
- Lower energy costs for manufacturers
For Nigeria's industrial sector, improved access to gas is critical to competitiveness, especially as energy costs remain a major constraint on production.
How the Financing Will Be Used
Afreximbank said the facility will support Axxela's ongoing expansion plans, including:
- Upgrading gas distribution networks
- Extending pipelines to underserved industrial zones
- Improving processing capacity
- Supporting cleaner energy transitions from diesel to gas
However, the bank did not disclose specific project locations, investment timelines, or the expected scale of new infrastructure.
Strategic Impact Areas
| Area | Expected Outcome |
|---|---|
| Gas distribution | Wider industrial access |
| Energy reliability | Reduced power disruptions |
| Fuel switching | Lower emissions than diesel |
| Industrial growth | Improved competitiveness |
The financing also reflects Afreximbank's broader push to support Africa's energy transition using gas as a "bridge fuel" while renewable capacity continues to scale.
PATH FORWARD – Financing Africa's Domestic Energy Networks
Afreximbank's $64 million facility for Levene Energy signals growing support for Africa's domestic gas infrastructure.
By strengthening distribution networks, the bank aims to improve energy access for industries and reduce reliance on costly diesel generation.
If effectively deployed, the investment could enhance Nigeria's industrial energy security while supporting cleaner, more reliable power systems across key economic zones.
Press Release: https://www.afreximbank.com/levene-energy-secures-64m-facility-from-afreximbank-to-acquire-strategic-stake-in-axxela-limited/
