MA’AM Energy Ltd and minority shareholders of Geregu Power Plc are set to receive a significant portion of the N500 billion power sector debt owed by the Federal Government.
This is according to an analysis of power sector arrears and debt repayment instruments reviewed by Nairametrics.
Geregu Power, like other electricity generating companies (Gencos), is owed part of a broader N4 trillion debt, with the Federal Government now issuing bonds to clear the backlog.
What the data is saying
According to the financial statement of Geregu Power as of September 2025, the company reported a receivable of N170 billion, net of impairments.
However, Nairametrics estimates that the gross figure, before impairment, could be closer to N500 billion.
As of March 2025, total outstanding obligations to the company stood near N400 billion, with sources suggesting this rose to nearly N500 billion by December 2025.
The Federal Government, through the Nigerian Bulk Electricity Trading (NBET) company, has commenced a bond programme to clear these arrears.
A term sheet reviewed by Nairametrics reveals that NBET Finance Company Plc, backed by a sovereign guarantee, will issue bonds under a N4 trillion programme.
The first phase involves raising N1.23 trillion between November and December 2025 in two tranches:
- Series 1 Tranche A: N300 billion offered to investors via book-building for cash payment.
- Series 1 Tranche B: N290 billion allotted directly to Gencos, not in cash, but as tradable bonds or collateral for loans.
The bonds provide Gencos with liquidity without an immediate cash burden on the government, with scope to expand further under Phase 1.
What this means
MA’AM Energy, which acquired a 77% controlling stake in Geregu Power in December 2025, stands to be the primary beneficiary of any debt repayment by the Federal Government.
If executed through the proposed bond programme, the repayment would materially improve earnings visibility and reduce balance-sheet uncertainty, strengthening confidence in Geregu Power’s medium-term cash flow profile and dividend outlook.
Once the payment is effected, previously impaired receivables could be reversed, resulting in a material uplift to reported earnings and a strengthening of the company’s balance sheet. This would enhance Geregu Power’s capacity to declare dividends and improve overall shareholder value.
Geregu Power’s share price closed at ₦1,141 per share and has remained largely stable since the start of 2026, reflecting the tightly held structure of the stock. Trading activity has been muted, with MA’AM Energy’s 77% ownership significantly constraining free float on the Nigerian Exchange.
For MA’AM Energy Ltd, this development represents an accelerated pathway to value recovery on its recent acquisition.
What you should know
Billionaire investor Femi Otedola divested his 77% stake in Geregu Power Plc in December 2025 in a $750 million deal, one of Nigeria’s largest private power sector transactions.
The sale involved transferring his 95% stake in Amperion Power Distribution Company Ltd (Geregu’s parent company) to MA’AM Energy Ltd.
The acquisition was financed by a consortium of Nigerian banks led by Zenith Bank, with Blackbirch Capital serving as the financial adviser.
