Femi Otedola Sells Majority Stake in Geregu Power in $750 Million Deal
Prominent Nigerian businessman Femi Otedola has completed the sale of a majority stake in Geregu Power in a transaction valued at $750 million. The move marks a significant shift in ownership within one of Nigeria’s key electricity generation assets and reflects evolving investment patterns in the power sector.
The deal represents a major liquidity event for Otedola and his investment interests, as well as a strategic moment for Geregu Power’s future direction. By divesting a controlling interest, Otedola has opened the door for new partners to influence the company’s growth trajectory and participation in Nigeria’s energy landscape.
Strategic Sale in the Power Sector
Geregu Power is one of Nigeria’s prominent independent power plants, contributing to the national grid and supporting industrial and commercial electricity demand. The sale of its majority ownership is significant given ongoing efforts to strengthen energy infrastructure, increase generation capacity, and attract capital into the power value chain.
For the buyer, acquiring a controlling interest in a major generation asset signals confidence in the long-term prospects of Nigeria’s energy market. The deal underscores the potential for returns in critical infrastructure investments and reflects optimism about sustained demand for reliable power.
Implications for the Energy Market
This transaction highlights broader trends in Nigeria’s infrastructure investment climate. As private and institutional capital seeks opportunities in sectors with long-term revenue potential, energy assets like power plants are becoming focal points for strategic allocation of investment funds.
The divestment also suggests that existing investors may be recalibrating portfolios to align with changing market dynamics. For the power sector, new ownership could bring fresh perspectives on operational efficiencies, capital deployment, and grid integration strategies.
Impact on Stakeholders and Investors
Investors and stakeholders in Nigeria’s broader economy will be watching how the new majority owners of Geregu Power approach the company’s development. The energy sector remains central to economic performance, influencing productivity, industrial output, and quality of life.
For Otedola and his affiliates, the successful conclusion of this sale may free up capital for reinvestment into other ventures, while also reinforcing Nigeria’s reputation as a destination for high-value transactions.
Looking Ahead
As the transaction is finalised and the transition in ownership progresses, attention will turn to how Geregu Power evolves operationally and strategically. The power generation landscape in Nigeria continues to develop, shaped by regulatory reforms, private sector participation, and the quest for improved reliability.
The $750 million sale of a majority stake in Geregu Power stands out as a landmark deal in the energy sector and a notable milestone in the ongoing transformation of Nigeria’s infrastructure investment environment.
