Otedola Exits Geregu Power in $750 Million Deal, Signals Strategic Shift to Banking Sector

Billionaire investor Femi Otedola has exited Geregu Power Plc in a landmark transaction valued at approximately $750 million, divesting his 77 per cent controlling power in the power generation company.

The development was disclosed in a filing by Geregu Power Plc on the Nigerian Exchange (NGX) and confirmed by sources familiar with the transaction.

The deal was executed through the sale of Otedola’s 95 per cent stake in Amperion Power Distribution Company Limited to MA’AM Energy Ltd, a Nigerian energy firm. Amperion Power is the majority shareholder in Geregu Power, making the transaction one of the largest private divestments in Nigeria’s power sector to date.

According to the NGX filing, Amperion Power has undergone a major ownership restructuring, with MA’AM Energy acquiring a 95 per cent equity interest. As a result, the indirect controlling interest previously held by Calvados Global Services Limited and Mr. Otedola has been transferred to MA’AM Energy, which now emerges as the ultimate controlling shareholder of Geregu Power Plc.

Geregu Power clarified that the transaction does not involve the direct sale or transfer of its shares, meaning the company’s public shareholding structure on the NGX remains unchanged. However, the ultimate beneficial ownership of 77 per cent of the company has effectively shifted following the completion of the deal.

MA’AM Energy, according to information on its website, is an Abuja-based integrated energy company with interests spanning electricity generation and supply, energy trading, and marketing. Sources disclosed that the transaction, which closed on December 29, 2025, was financed by a consortium of Nigerian banks led by Zenith Bank, with Blackbirch Capital serving as financial advisers.

Geregu Power is currently valued at approximately N2.85 trillion, trading at N1,140 per share, and remains one of the most capitalised and consistently profitable companies on the Nigerian Exchange.

Otedola’s exit marks the end of a significant chapter in his more than two-decade involvement in Nigeria’s energy sector. His journey began in 1999 with the establishment of Zenon Petroleum and Gas, followed by the acquisition and rebranding of African Petroleum into Forte Oil. After exiting Forte Oil in 2019, he carved out Geregu Power as a standalone generation company and transformed it into one of Nigeria’s leading GenCos.

Under his leadership, Geregu Power expanded its capacity from 40 megawatts to a nameplate capacity of 435 megawatts, contributing about 10 per cent to the national grid. The company also achieved consistent profitability, delivering average annual dividends estimated at N20 billion.

The divestment underscores a broader strategic pivot by Otedola toward the financial services sector. He currently serves as Chairman of First HoldCo, the parent company of First Bank of Nigeria, where he holds a 17.1 per cent stake, making him the largest individual shareholder. His entry into the bank in 2022 significantly altered its ownership structure and has since been followed by aggressive reforms, including recapitalisation efforts, internal restructuring, and intensified debt recovery.

With an estimated $750 million in liquidity unlocked from the Geregu transaction, Otedola appears to be positioning himself ahead of an expected wave of recapitalisation and consolidation in Nigeria’s banking sector. Market analysts view the move as a calculated reallocation of capital and influence toward a sector offering greater control and long-term upside.

The transaction also comes at a critical time for Nigeria’s electricity market. The Federal Government recently announced a N4 trillion power-sector liquidity intervention, with an initial N590 billion already being disbursed to settle generation company debts and stabilise sector cash flows, including obligations owed to Geregu Power.

Otedola’s exit reflects a broader trend of early investors in Nigeria’s post-2013 power privatisation era reaching maturity in their investment cycles. As asset valuations rise and liquidity conditions improve, further exits are anticipated, signalling a new phase of capital recycling within the sector. At the same time, legacy operators are seeking fresh capital to adapt to a more market-driven environment with reduced government support.

Industry watchers note that the shifting ownership landscape points to increased investor activity across both the power and financial sectors. In a related development, the sale of Eko Electricity Distribution Company to North South Power is reportedly nearing completion, with about N150 billion already received, reinforcing expectations of heightened deal flow, restructuring, and improved liquidity across Nigeria’s infrastructure and financial markets.