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Have you ever wondered why Otedola resigned from Geregu Power? What the $750 Million Exit Means.
Nigerian billionaire Femi Otedola has fully exited Geregu Power Plc following the completion of a $750 million transaction, ending his 12-year investment in one of Nigeria’s most strategic electricity generation companies. The deal confirms that Femi Otedola exits Geregu Power, marking one of the largest private-sector divestments in the country’s power industry.
The development means Otedola resigns Geregu Power as a controlling shareholder, transferring effective control to a new investor group and closing a long-running chapter in Nigeria’s post-privatisation electricity sector.
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Ejes Gist News reports that the transaction ranks among the most valuable exits by a Nigerian businessman in the energy industry.
Overview of the Geregu Power Exit Deal
The $750 million transaction was executed through a restructuring at the shareholder level rather than a direct sale of shares on the Nigerian Exchange (NGX).
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Key details of the deal include:
- MA’AM Energy Limited acquired a 95 percent equity stake in Amperion Power Distribution Company Limited.
- Amperion Power was the majority shareholder in Geregu Power Plc.
- The acquisition transferred effective control of about 77 percent of Geregu Power previously held indirectly by Femi Otedola.
- The deal closed on December 29, 2025.
Because the transaction occurred at the holding-company level, Geregu Power’s publicly listed shareholding structure on the NGX remained unchanged.
How the Transaction Was Financed
Multiple financial institutions were involved in facilitating the acquisition, reflecting the size and complexity of the deal.
According to transaction details made public:
- A consortium of Nigerian banks led by Zenith Bank provided acquisition financing.
- BlackBirch Capital acted as the financial adviser to the buyer.
- The transaction did not require regulatory suspension of Geregu Power shares on the NGX, as no direct share transfer occurred.
The financing structure highlights growing local banking capacity to support large-scale corporate acquisitions in Nigeria’s energy sector.
Financial Outcome for Femi Otedola
The $750 million sale confirms that Femi Otedola exits Geregu Power with a substantial return on investment.
Available figures indicate:
- Otedola’s total investment in Geregu Power began in 2013 during Nigeria’s power-sector privatisation.
- The exit generated an estimated profit of approximately $618 million.
- The transaction closed a 12-year investment cycle.
This return places the Geregu Power deal among the most successful private-equity-style exits in Nigeria’s infrastructure and utilities space.
From Commodities Trading to Power Generation
Femi Otedola initially built his wealth through commodities trading, particularly in petroleum products. His strategic pivot into power generation reshaped his business profile.
Key milestones include:
- Acquisition of Geregu Power during the 2013 power-sector privatisation.
- Gradual expansion of capacity and operational efficiency.
- Sale of his controlling stake in Forte Oil in 2019 to concentrate capital in power generation.
By making Geregu Power the centrepiece of his energy strategy, Otedola positioned himself as a major player in Nigeria’s electricity supply chain.
How Otedola Transformed Geregu Power
Under Otedola’s ownership, Geregu Power evolved from a modest facility into a major contributor to the national grid.
Operational growth highlights include:
- Expansion from an initial capacity of about 40 megawatts to 435 megawatts.
- Contribution of roughly 10 percent to Nigeria’s national grid capacity at peak performance.
- Consistent operational improvements and maintenance upgrades.
This transformation established Geregu Power as one of Nigeria’s most reliable thermal power plants.
Dividend Performance and Revenue Growth
Geregu Power delivered strong financial returns during Otedola’s tenure.
Reported performance metrics show:
- Average annual dividends of about ₦20 billion.
- Strong cash flow despite gas supply challenges and grid constraints.
- Stable revenue streams supported by power purchase agreements.
These fundamentals helped position the company for institutional investment and eventual public listing.
Institutional Investors and Partial Sell-Downs
Before the final exit, Otedola had already begun reducing his exposure to Geregu Power.
Between 2022 and 2023:
- He sold portions of his holdings to institutional investors.
- New shareholders included the Nigerian government, Afreximbank’s Fund for Export Development in Africa, and China’s State Grid Corporation.
These strategic investors strengthened the company’s governance profile and balance sheet ahead of its NGX listing.
Geregu Power on the Nigerian Exchange
Geregu Power Plc is one of the most capitalised electricity companies on the Nigerian Exchange.
Market indicators at the time of the exit include:
- Market valuation of approximately ₦2.85 trillion.
- Share price around ₦1,140 per share.
- Status as one of the most profitable listed power companies in Nigeria.
The listing provided transparency and access to long-term capital, supporting operational stability.
Recent Financial Performance of Geregu Power
Despite rising operational costs, Geregu Power maintained solid financial results.
For the nine months ending September 30, 2025:
- Revenue reached ₦131.47 billion, representing nearly 17 percent year-on-year growth.
- Profit after tax stood at ₦25.1 billion.
- Performance reflected resilience amid inflationary pressures and foreign exchange volatility.
These results underscore the company’s strong fundamentals following the exit.
Leadership Changes After the Exit
Following the completion of the transaction, Geregu Power announced significant governance changes.
Key developments include:
- Reconstitution of the board of directors.
- Appointment of a new chairman.
- Exit of the previous executive management team.
The leadership transition signals a new strategic direction under the control of MA’AM Energy Limited.
Implications for Nigeria’s Power Sector
The transaction carries broader significance for Nigeria’s electricity industry.
Notable implications include:
- Demonstration that large-scale exits are possible in Nigeria’s power sector.
- Increased investor confidence in privatised infrastructure assets.
- Validation of long-term capital commitment in electricity generation.
Analysts view the deal as a benchmark for future power-sector investments.
Impact on Femi Otedola’s Net Worth
The sale also reshapes Otedola’s personal financial profile.
Current estimates indicate:
- Net worth of approximately $1.6 billion on the Forbes billionaire list.
- An increase of about $100 million attributed partly to asset revaluation and exits.
- Potential upward movement in Africa’s billionaire rankings.
The Geregu Power exit reinforces his reputation for timing strategic divestments.
Shift in Investment Focus After Geregu Power
With Femi Otedola exits Geregu Power, attention has shifted to his remaining interests.
His current focus areas include:
- Chairmanship and significant shareholding in First HoldCo Plc.
- Increased exposure to financial services and banking.
- Reduced direct involvement in energy asset operations.
This strategy aligns with his earlier exit from Forte Oil and broader portfolio rebalancing.
Why the Geregu Power Exit Matters
The deal stands out for several reasons:
- Scale of the transaction at $750 million.
- Length of the investment cycle spanning over a decade.
- Impact on Nigeria’s electricity generation capacity and private investment narrative.
For market observers, the fact that Otedola resigns Geregu Power control confirms the maturity of Nigeria’s power privatisation outcomes.
Key Facts at a Glance
- Deal value: $750 million
- Asset: Geregu Power Plc
- Buyer: MA’AM Energy Limited (via Amperion Power)
- Seller: Femi Otedola
- Capacity: 435 megawatts
- Grid contribution: Approximately 10 percent
- Exit period: 12 years
What Comes Next for Geregu Power
Under new ownership, market participants are watching closely for:
- Capital expenditure plans for capacity optimisation.
- Changes in gas supply agreements.
- Potential expansion or diversification strategies.
Geregu Power remains a critical asset within Nigeria’s electricity supply framework, regardless of ownership changes.
Summary of the Geregu Power Divestment
The $750 million transaction conclusively confirms that Femi Otedola exits Geregu Power, closing a defining chapter in Nigeria’s power-sector privatisation era. The deal highlights value creation, institutional investor participation, and the growing depth of Nigeria’s infrastructure investment market.
