Femi Otedola Sells Majority Stake in Geregu Power for $750 Million

Billionaire investor Femi Otedola has officially exited his controlling interest in Geregu Power Plc by divesting his 77% stake in a landmark $750 million transaction, according to a recent disclosure on the Nigerian Stock Exchange (NGX) portal.

Details of the Transaction and Ownership Shift

The sale was executed through Otedola’s transfer of his 95% holding in Amperion Power Distribution Company Limited to MA’AM Energy Ltd, an integrated energy firm headquartered in Abuja. Amperion holds the majority shares in Geregu Power, making this transaction an indirect transfer of control.

Geregu Power clarified that this deal did not involve a direct sale of its shares on the NGX, meaning the public shareholding structure remains intact. However, the ultimate beneficial ownership of the 77% controlling interest has effectively changed hands due to the shift in Amperion’s ownership.

Sources close to the matter confirmed the deal was finalized on December 29, 2025. The acquisition was backed by a consortium of Nigerian banks led by Zenith Bank, with Blackbirch Capital acting as the financial advisor for the transaction.

Context: Power Sector Liquidity and Market Stability

This divestment occurs amid heightened focus on liquidity challenges within Nigeria’s power sector. The Federal Government recently established a ₦4 trillion liquidity fund to stabilize the market, with an initial disbursement of ₦590 billion aimed at settling outstanding obligations to Generation Companies (GenCos).

Strategic Shift Toward Financial Services

Geregu Power, valued at approximately ₦2.85 trillion and trading near ₦1,140 per share, ranks among the most valuable and profitable entities on the Nigerian Exchange. Otedola’s decision to exit aligns with his broader strategic reorientation toward the financial services industry.

Since acquiring a 17.1% stake and assuming the chairmanship of First HoldCo, Otedola has been actively reshaping the group’s trajectory. His 2022 entry into First Bank triggered significant ownership restructuring, recapitalization efforts, and a renewed focus on debt recovery.

Rather than a simple profit-taking move, the Geregu Power stake sale appears to be a calculated redeployment of capital, positioning Otedola to capitalize on growth opportunities within Nigeria’s banking sector. The timing is particularly strategic, as the banking industry braces for a fresh round of recapitalization and consolidation pressures.

Looking Ahead: Implications for Nigeria’s Energy and Financial Markets

Otedola’s exit from the power sector and increased focus on financial services could signal a broader trend among Nigerian investors seeking to diversify portfolios amid evolving market dynamics. With the power sector undergoing reforms and liquidity injections, and the banking sector preparing for intensified competition, this move underscores the shifting landscape of Nigeria’s key industries.

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