Landmark Divestment Reshapes Nigeria's Power Sector
Nigerian billionaire Femi Otedola has concluded a significant transaction, divesting his 77% indirect controlling stake in Geregu Power Plc for an estimated $750 million. The landmark deal, which closed on December 29, 2025, sees Abuja-based MA'AM Energy Limited acquire the substantial interest, marking one of the largest private power-sector divestments in Nigeria's history.
Transaction Details and Ownership Transfer
The divestment was executed through the sale of Otedola's 95% equity interest in Amperion Power Distribution Company Limited to MA'AM Energy Limited. Amperion Power served as the majority shareholder of Geregu Power, holding the indirect 77% controlling interest. This structured approach meant that the transaction did not involve a direct transfer of Geregu Power Plc shares on the Nigerian Exchange (NGX), thus leaving the company's listed shareholding structure unchanged. The acquisition was reportedly financed by a consortium of Nigerian banks, led by Zenith Bank, with BlackBirch Capital acting as financial advisers.
Otedola's Strategic Exit and Future Focus
This sale concludes a 12-year investment journey for Femi Otedola in Geregu Power, an asset he acquired through Amperion Power in 2013 and subsequently led to its listing on the NGX in 2022. The divestment is reported to have yielded a substantial profit of approximately $618 million for Otedola. Analysts suggest that the proceeds from this sale are expected to be channeled into FirstHoldCo, the parent company of First Bank of Nigeria, indicating a strategic shift in Otedola's investment portfolio towards the banking sector.
Geregu Power: Role and New Leadership
Geregu Power Plc is a critical player in Nigeria's energy landscape, contributing approximately 10% to the national grid with an installed capacity of 435 megawatts. Following the ownership change, a comprehensive overhaul of Geregu Power's board has been initiated. Otedola has resigned from his position as chairman, alongside other key executives. Senator Abdul-Aziz Abubakar Yari has been appointed as the new Chairman of the board, effective December 29, 2025, signaling a new era of leadership for the power generation company. MA'AM Energy Limited, the new controlling entity, is an integrated energy company based in Abuja, engaged in electricity generation, supply, energy trading, and marketing.
5 Comments
Bermudez
Otedola is a business genius! What a massive profit and strategic move.
Coccinella
The scale of this deal is significant for the Nigerian economy, potentially freeing up capital for new ventures. However, the indirect nature of the sale and the lack of public trading involvement make it less transparent than many would prefer for such a crucial asset.
Muchacho
Just another billionaire making billions. Does this really help ordinary Nigerians with power?
ZmeeLove
While the divestment marks a successful exit for Otedola, the true test lies in MA'AM Energy's long-term commitment. We need to ensure new ownership prioritizes sustainable power delivery over short-term gains.
Habibi
So much money exchanged, yet we still have terrible electricity. It's a joke!