Rand Merchant Bank has closed a $285 million acquisition financing for BlueCore InfraCo Limited, enabling the Nigerian company to acquire Axxela Limited in a transaction that marks a strategic pivot toward indigenous ownership of the country’s critical gas infrastructure.
The deal, which saw BlueCore acquire Glover Gas & Power B.V., the complete owner of Axxela, one of Nigeria’s premier private gas and power distribution platforms, represents a watershed moment for Africa’s most populous nation as it seeks to commercialise vast natural gas reserves while reducing carbon emissions from oil-dependent energy systems.
RMB, the corporate and investment banking arm of South Africa’s FirstRand Group, served multiple roles in the complex transaction: Global Debt Coordinator, Mandated Lead Arranger, Underwriter, and Bookrunner. The bank also acted as exclusive sell-side adviser to Helios Investment Partners, the private equity firm exiting its stake in Axxela.
“This milestone transaction showcases RMB’s ability to deliver integrated, high-impact solutions that unlock value for our clients while advancing Nigeria’s energy transition,” said Chidi Iwuchukwu, head of investment banking, Africa at RMB. “By enabling indigenous ownership of strategic gas and power assets, we’re helping to drive the shift toward cleaner, more sustainable energy.”
The financing structure proved critical in a highly competitive process that attracted over 15 potential bidders. RMB’s “One Bank” approach, leveraging cross-divisional expertise and continental relationships, allowed BlueCore to close the transaction under compressed timelines, a crucial factor in securing the asset.
Nigeria, home to Africa’s largest natural gas reserves estimated at over 200 trillion cubic feet, has long struggled to monetise these resources domestically. Much of the associated gas from oil production has historically been flared, contributing to environmental degradation and representing significant economic waste. The federal government’s gas commercialisation agenda aims to redirect this resource toward power generation and industrial use.
Axxela operates critical midstream infrastructure, including gas processing, transmission, and distribution networks serving industrial, commercial, and residential customers across Nigeria’s economic heartland. The platform’s assets are strategically positioned to capitalise on growing domestic gas demand as the country phases out diesel and heavy fuel oil in favour of cleaner alternatives.
“This acquisition marks a defining step in BlueCorp’s mission to strengthen Nigeria’s energy infrastructure through indigenous ownership,” said Eric Idiahi of BlueCore InfraCo. “Partnering with RMB enabled us to secure a tailored financing solution that positions Axxela to drive gas commercialisation, reliability, and sustainability across the country.”
The transaction aligns with broader government initiatives to transition domestic energy consumption away from petrol and diesel. President Bola Tinubu’s administration has prioritised gas development as both an economic catalyst and environmental imperative, with initiatives including the Decade of Gas program and recent deregulation measures designed to attract private investment.
Francis Oputeh, Lead Transactor and Head of Leveraged Finance West Africa for RMB, emphasised the deal’s structural complexity. “This transaction reflects our strong partnership with BlueCore InfraCo and underscores RMB’s leadership in structuring complex, multi-stakeholder deals across Africa,” he said. “It’s a testament to our role as a trusted adviser delivering impact beyond finance.”
For Helios Investment Partners, the exit represents a successful conclusion to its investment in Nigeria’s energy sector. The firm, which focuses on African infrastructure and growth companies, had backed Axxela’s expansion across multiple geographies and customer segments during its ownership tenure.
The shift toward Nigerian ownership of energy assets has accelerated as local institutional investors and strategic operators seek to capitalise on energy transition opportunities. BlueCore InfraCo joins a growing cohort of indigenous players taking control of critical infrastructure previously dominated by international operators and private equity firms.
The Axxela acquisition is expected to enhance energy reliability for industrial customers while supporting national decarbonisation objectives through reduced gas flaring and displacement of carbon-intensive liquid fuels. Nigeria flares approximately 7.5 billion cubic meters of gas annually, making domestic commercialisation both an environmental and economic priority.
RMB’s successful execution of the financing reinforces its position as a leading arranger of complex energy transactions across Africa, where energy infrastructure investment needs exceed $50 billion annually, according to International Energy Agency estimates.