Simply three years after taking his power company public, Nigerian billionaire Femi Otedola is making ready one other main shift. He has offered 77 p.c of his stake in Geregu Energy Plc for $750 million, in line with credible sources near the transaction. This marks a decisive step away from an asset he helped flip right into a market bellwether.
In line with a notice published on the website of the Nigerian Exchange on Monday, the shares have been acquired by MA’AM Power Restricted, an organization linked to Nigerian businessman and politician Senator Abdul-Aziz Abubakar Yari. MA’AM Power acquired 95% fairness curiosity in Amperion Energy Distribution Firm Restricted thereby turning into the brand new controlling shareholder of Amperion Energy Distribution Firm Restricted, the automobile by way of which Otedola held the overwhelming majority of his shares in Geregu. Consequently, the oblique controlling curiosity beforehand held by Calvados International Companies Restricted and Mr. Femi Otedola, CON in Geregu Energy Plc has been transferred to MA’AM Power Restricted.
Geregu Energy, listed on the Nigerian Trade below the ticker GEREGU, has an put in capability of 435 megawatts and stays one of many nation’s most carefully adopted power shares. Otedola took management of the plant by way of Amperion Energy in 2013 and, in 2022, led its itemizing on the NGX, the primary power-generating firm to take action. On the time of the itemizing, Amperion held a 95.56 p.c stake, underscoring Otedola’s grip on the enterprise.
Otedola reshapes empire past energy
Since Geregu Energy’s itemizing in 2022, Otedola has trimmed his stake steadily. By October, his holding stood at 78.05 p.c. That month, Amperion sold just over 9 million shares at N1,027.4 apiece, elevating N9.29 billion, or about $6.25 million. The most recent transfer goes a lot additional. Promoting 77 p.c of his stake successfully ends his place because the dominant shareholder of Geregu. He retains a 5.05 p.c stake as the corporate continues to put up robust outcomes.
Geregu reported an 82 p.c bounce in pre-tax revenue for the three months to September, reaching N11.2 billion ($7.62 million), in line with unaudited figures. Income for the quarter rose 37 p.c to N43.8 billion, whereas nine-month income climbed to 131.5 billion ($89.46 million). Pre-tax revenue for the primary 9 months reached N37.5 billion ($25.51 million), reflecting greater energy era and improved pricing.
Whereas Geregu has been performing, Otedola’s consideration has more and more turned to banking. Proceeds from the sale are anticipated to be channeled into FirstHoldCo, the mum or dad of First Financial institution of Nigeria. Regulatory filings present that in September he bought nearly 65 million FirstHoldCo shares at a mean value of N31 ($0.021), spending about N2.01 billion ($1.35 million). Otedola chairs each firms, however his latest actions level to the place his priorities now lie.
Femi Otedola reshapes Nigeria’s oldest financial institution
First Financial institution, based in 1894, has lengthy been a fixture in Nigeria’s monetary system. Years of weak controls and unhealthy loans weighed on its standing. Otedola started constructing his stake in 2021, a long-term dedication moderately than a fast commerce. After turning into chairman of FirstHoldCo in January 2024, he tightened spending and strengthened oversight. One early resolution barred executives from charging personal jet flights to the financial institution, signaling restraint and accountability.
The outcomes have began to point out. FirstHoldCo reported gross earnings of greater than $660 million in 2024, with beneficial properties throughout curiosity revenue, charges and funding revenue. The advance carried into 2025. For the primary 9 months of the yr, gross earnings rose to N2.55 trillion ($1.76 billion) from N1.84 trillion ($1.27 billion) a year earlier. Curiosity revenue climbed to N2.29 trillion ($1.58 billion), whereas charge and fee revenue elevated to N260.5 billion ($180.3 million), serving to the group keep worthwhile regardless of a difficult economic system.
Otedola has made clear that he plans to go additional. On the group’s annual assembly, he advised shareholders he intends to take a position greater than 320 billion ($200.9 million) of his personal cash into the financial institution, with out borrowing. If accomplished, it will rank among the many largest private investments ever made in Nigeria’s banking sector. “This was not a raffle,” he stated. “It was a deliberate resolution to rebuild First Financial institution into a powerful, well-run establishment.”
