Otedola divests from Geregu Power in $750m deal

Femi Otedola has executed a decisive exit from Geregu Power Plc in a landmark transaction valued at approximately $750 million, marking one of the largest private divestments in Nigeria’s power sector and a pivotal shift in the company’s ultimate ownership structure.

According to disclosures filed on the Nigerian Exchange (NGX), the transaction was completed through the sale of Otedola’s 95 percent stake in Amperion Power Distribution Company Limited to MA’AM Energy Limited. Amperion is Geregu Power’s majority shareholder, and the deal effectively transfers the ultimate beneficial ownership of 77 percent of Geregu Power’s issued share capital to MA’AM Energy.

While there was no direct sale or transfer of Geregu Power shares at the NGX level, leaving the company’s quoted shareholding structure unchanged, the change in control is economically and strategically material.

From a market perspective, the transaction represents a clean monetisation of Otedola’s investment in Geregu Power, crystallising value after years of operational consolidation and capital market visibility following the company’s listing.

It also underscores a broader trend of portfolio rebalancing among Nigeria’s leading investors, as capital rotates from mature infrastructure assets toward new opportunities amid tightening macroeconomic and regulatory conditions.

The ownership transition has been swiftly followed by a comprehensive board reconstitution. Senator Abdul-Aziz Abubakar Yari has been appointed Chairman, alongside a slate of non-executive and independent directors drawn to reinforce governance, oversight, and strategic depth under the new controlling shareholder.

Concurrently, Otedola stepped down as Chairman, alongside the Chief Executive Officer, Deputy Chief Executive Officer, and several non-executive and independent directors, formally closing an era of founder-led control.

For investors, the immediate implication is twofold. First, the absence of a direct equity transaction at the listed entity level limits short-term technical disruption to Geregu Power’s stock. Second, the change in ultimate ownership and board composition introduces a new strategic lens that could influence capital allocation, dividend policy, and long-term growth priorities.

Continuity risks are partially mitigated by the retention of executive collaboration during the transition period, suggesting operational stability in the near term.

At a sectoral level, the deal reinforces the investability of Nigeria’s power assets at scale, even as policy uncertainty and grid constraints persist.
A $750 million exit sets a benchmark valuation reference for comparable assets and may catalyse further mergers, acquisitions, and private equity interest in the electricity value chain.

Ultimately, Otedola’s exit from Geregu Power is less a retreat than a recalibration, locking in gains while handing control to a new sponsor at a time when governance credibility, balance-sheet strength, and strategic patience are becoming increasingly critical in Nigeria’s evolving power market.