Geregu Power Plc has unveiled plans to distribute N22.5 billion in dividends to shareholders for the 2025 financial year, underscoring a period of sustained economic growth and strategic repositioning within Nigeria’s evolving power sector.
The company’s board of directors approved a final dividend of N9 per ordinary share, according to a regulatory filing submitted to the Nigerian Exchange (NGX) and signed by its company secretary, The Structure HQ Limited. The announcement follows the board’s review of audited financial statements for the year ended December 31, 2025.
The proposed payout marks a continuation of Geregu’s upward dividend trajectory. The N9 per share represents a steady climb from N8.5 in the 2024 financial year and N8.0 the year prior, reflecting management’s confidence in the company’s cash generation capabilities. With 2.5 billion shares outstanding, the aggregate distribution has increased from N21.25 billion last year.
Trading at N1,141.5 per share, Geregu’s dividend yield now stands at approximately 0.79 percent, marginally above the 0.75 percent recorded in 2024. While the yield remains modest by some market standards, it signals consistent returns in a capital-intensive sector often characterized by volatile earnings.
Although fourth-quarter earnings have yet to be disclosed, available financial data points to robust operational momentum throughout 2025. For the nine months ending in September, the company reported a pre-tax profit of N37.46 billion, a 3.31 percent increase year-on-year. More striking was the 37.38 percent surge in third-quarter revenue to N43.83 billion, pushing nine-month revenue to N131.47 billion—nearly matching the entire 2024 full-year figure.
The revenue surge was primarily driven by energy sales totaling N85.5 billion and capacity charges of N45.9 billion during the January-to-September period, despite mounting operating expenses that continue to pressure margins across the sector. Operating profit climbed to N42.2 billion, up from N37 billion in the corresponding period of 2024.
Retained earnings stood at N55.1 billion by September’s end, up from N51.3 billion and representing approximately 98 percent of total shareholder equity—an indication of the company’s reinvestment strategy and financial prudence.
On the balance sheet, total assets expanded to N273.1 billion, while liabilities increased by 13.53 percent to N216.7 billion, reflecting both organic business growth and continued capital deployment in generation infrastructure.
Geregu’s financial outlook is further brightened by anticipated cash inflows from federal debt resolution efforts. The company, alongside its new majority owner, MA’AM Energy Ltd, is positioned to receive a substantial portion of a N500 billion payout earmarked by the Federal Government as part of a comprehensive N4 trillion debt settlement program targeting Generation Companies (Gencos).
The government plans to address the longstanding arrears through bond issuances, a move industry observers believe could significantly enhance liquidity across the power value chain and strengthen Geregu’s already solid financial footing. The debt overhang has been a persistent constraint on operational efficiency and investment in Nigeria’s electricity sector.
The dividend announcement arrives on the heels of one of Nigeria’s most significant private power sector transactions. Billionaire industrialist Femi Otedola, who previously commanded a 77 percent controlling interest in Geregu Power, completed a $750 million divestment in late 2024 or early 2025.
Otedola sold his 95 percent stake in Amperion Power Distribution Company Ltd—the holding vehicle for his Geregu Power shares—to MA’AM Energy Ltd, an Abuja-headquartered integrated energy firm with operations spanning power generation and trading. The transaction represents one of the largest private capital deployments in Nigeria’s post-privatization power sector, and signals renewed investor appetite despite the sector’s well-documented challenges.
MA’AM Energy now assumes majority control of Geregu, bringing fresh capital and potentially new operational strategies to one of Nigeria’s more efficiently run generation assets.
The proposed dividend and accompanying financial statements remain subject to shareholder approval at Geregu’s forthcoming Annual General Meeting, the date of which has not yet been announced. Investor sentiment will likely hinge on fourth-quarter results and management’s outlook amid Nigeria’s ongoing power sector reforms, including tariff adjustments and grid stability improvements.
For now, Geregu Power’s combination of rising earnings, increasing shareholder returns, and strategic ownership changes positions it as a bellwether for the broader ambitions of Nigeria’s electricity industry—one seeking to balance profitability with the urgent national imperative of reliable power supply.
WHAT YOU SHOULD KNOW
Geregu Power is paying out N22.5 billion in dividends (N9 per share) for 2025, marking its third consecutive year of dividend increases. The company posted strong nine-month results with revenue nearly matching 2024’s full-year total at N131.47 billion, driven by higher energy sales and capacity charges.
Two major catalysts position Geregu for continued growth: first, the Federal Government’s N500 billion debt settlement program will inject much-needed liquidity into the power sector. Second, the company recently underwent Nigeria’s largest private power sector transaction—a $750 million deal that transferred majority control from Femi Otedola to MA’AM Energy Ltd.
