Accugas Limited, a gas subsidiary under Savannah Energy, is taking a big step to protect itself from the risks of exchange rate changes.
The company has secured N773 billion from a consortium of five Nigerian banks to service or refinance its dollar debt.
The new deal, signed in June 2025, will help Accugas pay off the $212.3 million it still owes in U.S. dollars, with full repayment targeted for the second half of 2025.
The agreement marks a deliberate shift in its funding strategy, the Accugas stated.
This comes after a N340 billion loan they secured from this consortium in January 2024 for the same purpose.
“As at 31 December 2024, N332 billion of the Transitional Facility had been drawn down, with the resulting funds converted to US$, which, along with cash held, was used to partially prepay the existing Accugas US$ Facility, leaving a balance as at 31 December 2024 of approximately $212.3 million,” the company stated.
“It is currently expected that this will be completed in H2 2025 and, once completed, this will align Accugas’ primary debt facility with the currency in which gas revenues are received,” it added.
What you should know
Accugas is one of the largest independent gas suppliers in Nigeria.
The company processes and transports gas to Nigerian customers like the 560MW Calabar NIPP Power Plant, Ibom Power Plant and Lafarge Africa Cement Factory.
It operates a 200 mmcf/d processing facility and a 260km pipeline network.
With this new local currency loan, the company says its debt and earnings will now be in the same currency—naira—making it easier to manage financially.
Accugas, based in Esit Eket in Akwa Ibom, is partly owned and operated by Savannah (80%), while the remaining equity stake of 20% is held by the African Infrastructure Investment Managers (AIIM).
The company currently supplies gas to up to 24% of Nigeria’s thermal power generation capacity.