Billionaire investor Femi Otedola has exited Geregu Power Plc in a landmark $750 million transaction that sees him divest his 77% controlling stake in the power company.
This is according to a filing by Geregu Power Plc on the Nigerian Exchange (NGX) website and sources familiar with the matter.
The transaction was executed through the sale of Otedola’s 95% stake in Amperion Power Distribution Company Limited to MA’AM Energy Ltd, a Nigerian firm, marking one of the largest private power divestments in Nigeria’s history.
What they are saying
According to the NGX filing, Amperion Power Distribution Company Limited, the majority shareholder of Geregu Power, has undergone a significant restructuring of its ownership.
- The document confirms that “MA’AM Energy Ltd has acquired a 95% equity interest” in Amperion Power, effectively making it the new controlling shareholder of Geregu Power Plc.
- Consequently, the indirect controlling interest previously held by Calvados Global Services Limited and Mr. Femi Otedola “has been transferred to MA’AM Energy.”
- According to information on its website, MA’AM Energy is an Abuja-based integrated energy company engaged in electricity generation and supply, energy trading, and marketing.
Sources informed Nairametrics that the transaction, which closed on December 29, 2025, was financed by a consortium of Nigerian banks led by Zenith Bank, with Blackbirch Capital acting as financial advisers.
- While the sale involved Otedola’s stake in Amperion, Geregu Power clarified that this “does not involve the direct sale or transfer of shares of Geregu Power Plc,” meaning the company’s public shareholding structure on the NGX remains unchanged.
- Thus, the shareholding structure listed on the NGX remains unchanged, though the ultimate beneficial ownership of 77% of the company has effectively shifted.
Geregu Power is currently valued at N2.85 trillion, trading at N1,140 per share, and remains one of the most capitalised and profitable firms on the Nigerian Exchange.
Strong man of the capital market
Otedola’s involvement in the energy sector spans over two decades. He began in 1999 with the incorporation of Zenon Petroleum and Gas, later acquiring African Petroleum (AP) which he rebranded as Forte Oil.
Following his exit from Forte Oil in 2019, he carved out the power generation arm—Geregu Power—and grew it into one of Nigeria’s foremost GenCos, contributing 10% to national grid supply.
Under his leadership, Geregu expanded from 40MW to a nameplate capacity of 435MW, became consistently profitable, and averaged N20 billion in annual dividends.
A new strategic play – Otedola’s exit from Geregu signals a broader strategic shift to the financial sector. He now serves as Chairman of First HoldCo, the parent company of First Bank of Nigeria, where he holds a 17.1% stake—the single largest individual shareholding.
- His entry into First Bank in 2022 reshaped its ownership structure and has been followed by aggressive reforms, including recapitalisation, restructuring, and debt recovery drives.
- The Geregu divestment is not merely a portfolio reshuffle; it represents a reallocation of capital and influence to the financial services sector where Otedola sees greater upside and control.
- With $750 million in unlocked liquidity, the move comes as Nigeria’s banking sector braces for a wave of recapitalisation and consolidation.
Why this matters
The transaction comes at a pivotal moment for Nigeria’s electricity market. The Federal Government recently announced a N4 trillion power-sector liquidity fund, with an initial N590 billion currently being disbursed.
- This fund aims to settle GenCo debts, including obligations to Geregu Power, and stabilise cash flow in the sector.
- Otedola’s exit, however, highlights a growing trend—early investors in Nigeria’s post-2013 power privatisation are reaching maturity in their investment cycle.
As valuations rise and liquidity improves, more exits are expected, signalling a new phase of capital recycling in the sector.
Simultaneously, legacy players are seeking fresh capital to position themselves for a more market-driven operating environment, with limited government support.
What you should know.
- Otedola’s focus on banking could see First Bank become a key player in Nigeria’s recapitalisation wave.
- Other electricity sector transactions are also in motion. Nairametrics understands that the sale of Eko Electricity Distribution Company to North South Power is nearing completion, with about N150 billion already received.
- The changing ownership dynamics in the sector point to increased investor activity, restructuring, and improved liquidity conditions.
