Business
Otedola Exits Geregu Power in $750 Million Deal, Signals Strategic Shift to Banking Sector
Billionaire investor Femi Otedola has exited Geregu Power Plc in a landmark transaction valued at approximately $750 million, divesting his 77 per cent controlling power in the power generation company.
The development was disclosed in a filing by Geregu Power Plc on the Nigerian Exchange (NGX) and confirmed by sources familiar with the transaction.
The deal was executed through the sale of Otedola’s 95 per cent stake in Amperion Power Distribution Company Limited to MA’AM Energy Ltd, a Nigerian energy firm. Amperion Power is the majority shareholder in Geregu Power, making the transaction one of the largest private divestments in Nigeria’s power sector to date.
According to the NGX filing, Amperion Power has undergone a major ownership restructuring, with MA’AM Energy acquiring a 95 per cent equity interest. As a result, the indirect controlling interest previously held by Calvados Global Services Limited and Mr. Otedola has been transferred to MA’AM Energy, which now emerges as the ultimate controlling shareholder of Geregu Power Plc.
Geregu Power clarified that the transaction does not involve the direct sale or transfer of its shares, meaning the company’s public shareholding structure on the NGX remains unchanged. However, the ultimate beneficial ownership of 77 per cent of the company has effectively shifted following the completion of the deal.
MA’AM Energy, according to information on its website, is an Abuja-based integrated energy company with interests spanning electricity generation and supply, energy trading, and marketing. Sources disclosed that the transaction, which closed on December 29, 2025, was financed by a consortium of Nigerian banks led by Zenith Bank, with Blackbirch Capital serving as financial advisers.
Geregu Power is currently valued at approximately N2.85 trillion, trading at N1,140 per share, and remains one of the most capitalised and consistently profitable companies on the Nigerian Exchange.
Otedola’s exit marks the end of a significant chapter in his more than two-decade involvement in Nigeria’s energy sector. His journey began in 1999 with the establishment of Zenon Petroleum and Gas, followed by the acquisition and rebranding of African Petroleum into Forte Oil. After exiting Forte Oil in 2019, he carved out Geregu Power as a standalone generation company and transformed it into one of Nigeria’s leading GenCos.
Under his leadership, Geregu Power expanded its capacity from 40 megawatts to a nameplate capacity of 435 megawatts, contributing about 10 per cent to the national grid. The company also achieved consistent profitability, delivering average annual dividends estimated at N20 billion.
The divestment underscores a broader strategic pivot by Otedola toward the financial services sector. He currently serves as Chairman of First HoldCo, the parent company of First Bank of Nigeria, where he holds a 17.1 per cent stake, making him the largest individual shareholder. His entry into the bank in 2022 significantly altered its ownership structure and has since been followed by aggressive reforms, including recapitalisation efforts, internal restructuring, and intensified debt recovery.
With an estimated $750 million in liquidity unlocked from the Geregu transaction, Otedola appears to be positioning himself ahead of an expected wave of recapitalisation and consolidation in Nigeria’s banking sector. Market analysts view the move as a calculated reallocation of capital and influence toward a sector offering greater control and long-term upside.
The transaction also comes at a critical time for Nigeria’s electricity market. The Federal Government recently announced a N4 trillion power-sector liquidity intervention, with an initial N590 billion already being disbursed to settle generation company debts and stabilise sector cash flows, including obligations owed to Geregu Power.
Otedola’s exit reflects a broader trend of early investors in Nigeria’s post-2013 power privatisation era reaching maturity in their investment cycles. As asset valuations rise and liquidity conditions improve, further exits are anticipated, signalling a new phase of capital recycling within the sector. At the same time, legacy operators are seeking fresh capital to adapt to a more market-driven environment with reduced government support.
Industry watchers note that the shifting ownership landscape points to increased investor activity across both the power and financial sectors. In a related development, the sale of Eko Electricity Distribution Company to North South Power is reportedly nearing completion, with about N150 billion already received, reinforcing expectations of heightened deal flow, restructuring, and improved liquidity across Nigeria’s infrastructure and financial markets.
The Central Bank of Nigeria has approved the upgrade of operating licences for several leading fintech firms and microfinance banks, including Opay and Moniepoint, elevating them to national status and authorising full-scale operations across the country.
The licence upgrade also covers other major players such as Kuda Bank, Palmpay and Paga, whose rapid expansion through digital platforms and extensive agent networks has effectively pushed them beyond the limits of their former regional licences.
Confirming the development in Lagos at the annual conference of the Committee of Heads of Banks’ Operations, the Director of the Other Financial Institutions Supervision Department, Yemi Solaja, said the affected institutions had met the regulatory conditions required for nationwide operations.
“In practice, institutions like Moniepoint MFB, Opay, Kuda Bank and others are already operating nationally. The upgrade simply aligns their licences with the reality of their operations,” Solaja said.
He stressed the need for stronger physical presence and customer support structures, noting that most users of fintech services operate within the informal sector and require accessible points of contact to resolve complaints and disputes.
With the new national licences, the fintech firms will now be subject to stricter regulatory obligations, including higher capital requirements—set at N5 billion for national microfinance banks—and the establishment of offices dedicated to customer engagement and dispute resolution, while sustaining their role in deepening financial inclusion.
The move follows earlier enforcement actions by the apex bank, including fines of N1 billion each imposed on Moniepoint and Opay in 2024 over lapses in Know-Your-Customer compliance, reflecting the CBN’s continued push to strengthen governance and standards in Nigeria’s digital finance ecosystem.
Dangote Group has sealed a $350 million partnership with Indian engineering firm, Engineers India Limited (EIL), to significantly expand its refinery and petrochemical operations in Lagos.
Under the agreement, the expansion project will raise the refinery’s processing capacity from 650,000 barrels per day to 1.4 million barrels per day, positioning the facility as one of the largest single-site refinery complexes in the world.
The deal also covers major petrochemical upgrades, including a substantial increase in polypropylene production to about 2.4 million tonnes per annum, further strengthening the group’s downstream industrial footprint.
Located in the Lekki Free Zone, the Dangote Refinery represents a major turning point for Nigeria’s energy sector, marking a shift from heavy dependence on imported petroleum products towards domestic refining, self-sufficiency, and export of refined fuels and petrochemicals.
Nigeria’s crude oil imports from the United States rose sharply to 42.13 million barrels within the first ten months of 2025, reflecting a significant shift in the country’s crude supply pattern and refinery feedstock strategy.
Data obtained from the United States Energy Information Administration show that between January and October 2025, Nigeria imported more than 42 million barrels of US crude, a steep increase from the 15.79 million barrels recorded over the same period in 2024. The development represents a year-on-year growth of about 167 per cent, largely driven by rising demand from domestic refineries, particularly the Dangote Petroleum Refinery.
By contrast, Nigeria’s crude imports from the US in 2024 were unstable, failing to exceed four million barrels for much of the year and plunging to as low as 1.04 million barrels in June. The volatility highlighted supply and operational challenges during that period.
Although Nigeria recorded no US crude imports in January 2025, volumes picked up in February at 3.11 million barrels, slightly below the 3.61 million barrels imported in February 2024. Imports climbed further in March to 5.25 million barrels, compared with about 1.83 million barrels in the corresponding month of the previous year.
The EIA data showed continued momentum as Nigeria imported 3.79 million barrels in May 2025—an increase of 1.71 million barrels year-on-year—before surging to 9.16 million barrels in June. Imports eased slightly in July at 4.17 million barrels, marginally above July 2024 levels, followed by 6.24 million barrels in August. September and October both recorded steady inflows of 4.19 million barrels each.
Industry analysts, quoted by Petroleumprice.ng, attributed the rising import volumes to Nigeria’s growing requirement for crude oil feedstock as privately owned refineries scale up operations. They noted that with over 42 million barrels already imported within ten months, Nigeria’s intake of US crude has nearly tripled compared to the previous year, with the likelihood of further increases if the current trend continues.
The analysts also pointed to a gradual ramp-up in crude intake at the Dangote Petroleum Refinery, where US light sweet crude has become a preferred option due to its compatibility with complex refining processes.
Commenting on the trend, petroleum economist, Prof. Wumi Iledare, described the surge in imports as a structural shift with wide-ranging macroeconomic and sectoral implications. He said the ultimate impact on the Nigerian economy would depend on exchange rate dynamics, efficiency in domestic crude allocation, and the level of refinery utilisation.
According to him, crude oil imports could influence petroleum product prices and inflation primarily through the exchange rate channel. He noted that if macroeconomic stability is sustained and refineries operate at high utilisation levels, the development could support output growth, income generation, and employment. However, he cautioned that failure to address domestic crude pricing and allocation constraints could deepen Nigeria’s dependence on imported feedstock, undermining long-term energy security and industrial optimisation.