Femi Otedola cashes out of Geregu Power in $750 million deal

Just three years after taking his power company public, Nigerian billionaire Femi Otedola is preparing another major shift. He has sold 77 percent of his stake in Geregu Power Plc for $750 million, according to credible sources close to the transaction. This marks a decisive step away from an asset he helped turn into a market bellwether.

According to a notice published on the website of the Nigerian Exchange on Monday, the shares were acquired by MA’AM Energy Limited, a company linked to Nigerian businessman and politician Senator Abdul-Aziz Abubakar Yari. MA’AM Energy acquired 95% equity interest in Amperion Power Distribution Company Limited thereby becoming the new controlling shareholder of Amperion Power Distribution Company Limited, the vehicle through which Otedola held the vast majority of his shares in Geregu. Consequently, the indirect controlling interest previously held by Calvados Global Services Limited and Mr. Femi Otedola, CON in Geregu Power Plc has been transferred to MA’AM Energy Limited.

Geregu Power, listed on the Nigerian Exchange under the ticker GEREGU, has an installed capacity of 435 megawatts and remains one of the country’s most closely followed energy stocks. Otedola took control of the plant through Amperion Power in 2013 and, in 2022, led its listing on the NGX, the first power-generating company to do so. At the time of the listing, Amperion held a 95.56 percent stake, underscoring Otedola’s grip on the business.

Otedola reshapes empire beyond power

Since Geregu Power’s listing in 2022, Otedola has trimmed his stake steadily. By October, his holding stood at 78.05 percent. That month, Amperion sold just over 9 million shares at N1,027.4 apiece, raising N9.29 billion, or about $6.25 million. The latest move goes much further. Selling 77 percent of his stake effectively ends his position as the dominant shareholder of Geregu. He retains a 5.05 percent stake as the company continues to post strong results.

Geregu reported an 82 percent jump in pre-tax profit for the three months to September, reaching N11.2 billion ($7.62 million), according to unaudited figures. Revenue for the quarter rose 37 percent to N43.8 billion, while nine-month revenue climbed to 131.5 billion ($89.46 million). Pre-tax profit for the first nine months reached N37.5 billion ($25.51 million), reflecting higher power generation and improved pricing.

While Geregu has been performing, Otedola’s attention has increasingly turned to banking. Proceeds from the sale are expected to be channeled into FirstHoldCo, the parent of First Bank of Nigeria. Regulatory filings show that in September he bought nearly 65 million FirstHoldCo shares at an average price of N31 ($0.021), spending about N2.01 billion ($1.35 million). Otedola chairs both companies, but his recent actions point to where his priorities now lie.

Femi Otedola reshapes Nigeria’s oldest bank

First Bank, founded in 1894, has long been a fixture in Nigeria’s financial system. Years of weak controls and bad loans weighed on its standing. Otedola began building his stake in 2021, a long-term commitment rather than a quick trade. After becoming chairman of FirstHoldCo in January 2024, he tightened spending and reinforced oversight. One early decision barred executives from charging private jet flights to the bank, signaling restraint and accountability.

The results have started to show. FirstHoldCo reported gross earnings of more than $660 million in 2024, with gains across interest income, fees and investment income. The improvement carried into 2025. For the first nine months of the year, gross earnings rose to N2.55 trillion ($1.76 billion) from N1.84 trillion ($1.27 billion) a year earlier. Interest income climbed to N2.29 trillion ($1.58 billion), while fee and commission income increased to N260.5 billion ($180.3 million), helping the group stay profitable despite a challenging economy.

Otedola has made clear that he plans to go further. At the group’s annual meeting, he told shareholders he intends to invest more than 320 billion ($200.9 million) of his own money into the bank, without borrowing. If completed, it would rank among the largest personal investments ever made in Nigeria’s banking sector. “This was not a gamble,” he said. “It was a deliberate decision to rebuild First Bank into a strong, well-run institution.”