In a landmark transaction reshaping Nigeria’s energy sector, billionaire investor Femi Otedola has sold his majority stake in Geregu Power Plc. The deal, valued at $750 million, marks a significant shift for Otedola, who is now poised to deepen his investments in the financial services industry.
The Transaction Details
According to regulatory filings with the Nigerian Exchange Limited (NGX), the divestment involves the transfer of a 95% equity interest in Amperion Power Distribution Company Limited. Amperion, the core investment vehicle through which Otedola held his controlling interest, has been acquired by MA’AM Energy Limited, an Abuja-based integrated energy firm.
This restructuring effectively transfers the controlling interest previously held by Otedola and Calvados Global Services Limited to the new owners. The transaction, concluded on December 29, 2025, is one of the largest private divestments in the history of Nigeria’s power sector.
A Strategic Shift
Otedola’s exit from Geregu Power aligns with his broader strategy to pivot toward the banking sector. As the current chairman and largest shareholder of First HoldCo (the parent company of First Bank), Otedola has been steadily increasing his stake in the financial giant. Sources close to the billionaire indicate that the proceeds from the Geregu sale will be channeled into solidifying his position within the financial services landscape, where he sees significant growth potential.
This move mirrors his previous strategic pivot in 2019, when he divested from Forte Oil to focus fully on power generation—a decision that proved highly lucrative as Geregu Power became the first power company to list on the NGX, eventually joining the elite group of stocks worth over one trillion naira.
Geregu’s Legacy and Future
Under Otedola’s leadership, Geregu Power became a standout performer in a challenging sector. Acquired in 2013 during the privatization of the Power Holding Company of Nigeria (PHCN), the plant underwent massive rehabilitation, with hundreds of millions of dollars invested to boost capacity.
The company’s listing on the NGX in 2022 was a watershed moment, offering transparency and value to shareholders. Despite the ownership change, market analysts expect Geregu to remain a key player in Nigeria’s power grid, contributing approximately 10% of the nation’s generated power. The entry of MA’AM Energy is expected to bring fresh perspectives to the company’s operations, while institutional investors like the Afreximbank-backed Fund for Export Development in Africa (FEDA) and the State Grid Corporation of China retain their strategic interests.
Market Reaction
The announcement has sent ripples through the Nigerian capital market. While Geregu Power shares have historically been a favorite among investors, the change in control will likely be watched closely for any shifts in strategic direction. Meanwhile, banking stocks, particularly First HoldCo, may see increased activity as the market anticipates Otedola’s next major move with his newly released capital.
Otedola’s ability to enter, transform, and exit sectors at peak value continues to define his reputation as one of Africa’s most astute investors. As he closes the chapter on power, all eyes are now on his next play in the financial world.
