In what marks one of the most lucrative private sector exits in Nigeria’s history, billionaire businessman Femi Otedola has successfully divested his controlling interest in Geregu Power Plc, pocketing an estimated N896.5 billion in capital gains from the landmark transaction.
The deal, valued at $750 million, saw Otedola sell approximately 95% of his indirect holdings—roughly 1.814 billion shares—through his investment vehicle, Amperion Power Distribution Company Limited, to MA’AM Energy Limited, which now assumes control of the power generation firm.
The divestment represents the culmination of a 12-year investment strategy that began in 2013 when Otedola acquired Geregu Power through the federal government’s privatization program. What started as a calculated bet on Nigeria’s perpetually troubled power sector has evolved into one of the country’s most successful private equity stories.
When Geregu Power made its debut on the Nigerian Exchange in October 2022, it listed 2.5 billion ordinary shares at N100 apiece, establishing an initial market capitalization of N250 billion. Otedola’s stake at the time was valued at approximately N190.97 billion. Fast forward to late 2025, and the company’s market value has surged to N2.85 trillion—more than an eleven-fold increase in just three years.
The 95% portion of Otedola’s holdings that changed hands in this transaction carried an initial book value of N181.4 billion at listing. The exit price translates to a staggering 5.7x return on investment, or approximately 469% in naira terms—a performance that far outpaces most benchmark indices in the Nigerian market.
The extraordinary returns are partly attributable to Nigeria’s dramatic currency devaluation over the past three years. While the dollar-denominated return stands at approximately 77% using the 2022 official exchange rate of N450 to the dollar, the naira equivalent has been magnified by the local currency’s sharp depreciation to around N1,450 per dollar.
At the 2022 official rate, Otedola’s initial dollar cost for the 95% stake is estimated at $403 million. With an exit value of approximately $712.5 million (accounting for potential transaction fees), this implies a dollar gain of roughly $309 million. However, when calculated using parallel market rates that were prevalent during the investment period—around N736 per dollar—the dollar cost drops to approximately $246 million, pushing total dollar gains to $466 million.
This currency dynamic underscores a critical dimension of Nigerian investments: naira-denominated assets tied to dollar-generating businesses have become increasingly valuable as the exchange rate has shifted dramatically in recent years.
While the headline-grabbing sale price captures attention, industry observers note that Otedola’s total economic benefit extends well beyond share price appreciation. Geregu Power has established itself as one of Nigeria’s most reliable dividend payers, consistently distributing profits to shareholders even amid the challenging operating environment that has plagued the power sector.
The company declared a final dividend of N21.25 billion for 2024, equivalent to N8.50 per share. Market data indicate that Geregu has averaged approximately N20 billion in annual dividend payments in recent years, providing Otedola with substantial cash returns throughout his holding period. Over more than a decade of ownership, these dividend receipts would have contributed significantly to his overall return on investment.
Additionally, the company’s retained earnings—reported to exceed N50 billion—represent reinvested profits that have supported capacity expansion and operational improvements, ultimately enhancing the company’s valuation and making it an attractive acquisition target.
Geregu Power’s stellar performance in the Nigerian equity market reflects genuine operational achievements rather than mere speculation. The company has distinguished itself through steady generation capacity expansions, reliable output in a sector notorious for underperformance, and disciplined financial management.
In a country where power generation remains woefully inadequate—with national output often hovering around 4,000 to 5,000 megawatts for a population exceeding 200 million—Geregu’s ability to maintain and expand its generation capacity has positioned it as a critical player in addressing Nigeria’s chronic electricity deficit.
The company’s consistent profitability and dividend track record stand in stark contrast to many other players in the sector, which have struggled with gas supply constraints, aging infrastructure, and payment collection challenges from distribution companies.
With MA’AM Energy Limited now taking majority control, questions naturally arise about the future direction of Geregu Power. While details about the new controlling shareholder remain limited, the substantial premium paid for the stake suggests confidence in the company’s growth trajectory and the broader Nigerian power sector’s potential.
The transaction also signals potential consolidation in Nigeria’s power sector, which has long been fragmented and underperforming since the 2013 privatization. If MA’AM Energy brings additional capital, technical expertise, or strategic partnerships to bear, Geregu could be positioned for further expansion.
For Femi Otedola, this exit cements his reputation as one of Nigeria’s shrewdest investors and most successful energy entrepreneurs. His portfolio has spanned petroleum distribution, power generation, and, more recently, financial services, with each venture demonstrating his ability to identify undervalued assets and transform them into highly profitable enterprises.
The Geregu investment, in particular, showcases the rewards of patient capital and conviction investing. While many observers were skeptical of Nigeria’s power sector following the 2013 privatization—given the sector’s legacy of mismanagement and operational challenges—Otedola’s bet has vindicated those willing to take calculated risks in strategic national infrastructure.
The N896.5 billion windfall also raises broader questions about wealth accumulation and returns on infrastructure investments in Nigeria. While critics may point to the role of favorable regulatory treatment or privileged access in such outsized returns, supporters would argue that Otedola took genuine entrepreneurial risk in a sector where many others have failed.
As Otedola pivots to other investments—he has recently increased his stake in several publicly traded companies—the Geregu exit will likely be studied for years as a case study in strategic positioning, operational excellence, and the amplifying effects of currency dynamics on local investment returns.
For Nigeria’s power sector and capital markets, the transaction demonstrates that well-managed infrastructure assets can deliver world-class returns, potentially attracting more private capital to a sector that desperately needs investment to meet the nation’s growing energy demands.
WHAT YOU SHOULD KNOW
Nigerian billionaire Femi Otedola has completed one of the country’s largest private sector exits, selling 95% of his stake in Geregu Power Plc for $750 million to MA’AM Energy Limited—netting N896.5 billion in capital gains.
What matters most:
Exceptional returns: Otedola achieved a 5.7x return (469% in naira terms) on his 2022 listing investment and even greater returns considering his original 2013 acquisition. This represents one of the most successful infrastructure investments in Nigerian history.
Currency amplification: While his dollar return was approximately 77%, Nigeria’s dramatic currency devaluation from N450 to N1,450 per dollar magnified his naira gains exponentially—demonstrating how exchange rate movements can dramatically impact local investment returns.
Proven business model: Geregu Power’s market value surged from N250 billion at listing to N2.85 trillion by 2025, driven by operational excellence, consistent dividends averaging N20 billion annually, and reliable power generation in a chronically underperforming sector.
