Femi Otedola Exits Geregu Power in Landmark $750 Million Deal, Signals Strategic Shift to Banking and Finance

Billionaire investor and chairman of First HoldCo, Femi Otedola, has completed a major exit from Nigeria’s power sector after selling his controlling interest in Geregu Power Plc in a transaction valued at approximately $750 million. The deal, one of the largest private power divestments in Nigeria’s history, marks the end of Otedola’s direct involvement in Geregu Power, a company he nurtured into one of the country’s most profitable electricity generation firms.

According to disclosures filed on the Nigerian Exchange (NGX) and information from sources familiar with the transaction, the divestment was executed through the sale of Otedola’s 95 percent stake in Amperion Power Distribution Company Limited. Amperion Power is the majority shareholder in Geregu Power Plc, holding an indirect controlling interest of about 77 percent in the listed generation company. The buyer, MA’AM Energy Limited, an Abuja-based Nigerian energy firm, has now acquired the 95 percent equity stake in Amperion Power, effectively becoming the new controlling shareholder of Geregu Power.

The NGX filing confirms that following the transaction, the indirect controlling interest previously held by Calvados Global Services Limited and Mr. Femi Otedola has been transferred to MA’AM Energy. However, Geregu Power clarified that the transaction does not involve the direct sale or transfer of shares in Geregu Power Plc itself. As a result, the company’s public shareholding structure on the Nigerian Exchange remains unchanged, even though the ultimate beneficial ownership of the controlling stake has shifted.

Sources cited by Nairametrics revealed that the transaction was completed on December 29, 2025, and was financed by a consortium of Nigerian banks led by Zenith Bank, with Blackbirch Capital acting as financial advisers. At current market levels, Geregu Power is valued at about ₦2.85 trillion, trading around ₦1,140 per share, and remains one of the most capitalised and consistently profitable companies on the NGX.

Otedola’s exit from Geregu Power brings to a close more than two decades of involvement in Nigeria’s energy sector. His journey began in 1999 with the establishment of Zenon Petroleum and Gas, which later grew into a dominant fuel supply business. He subsequently acquired African Petroleum, rebranded it as Forte Oil, and expanded its operations across the downstream energy space. After exiting Forte Oil in 2019, Otedola retained and refocused the power generation arm, Geregu Power, building it into a flagship electricity generation company.

Under his leadership, Geregu Power expanded dramatically, growing from an initial capacity of about 40 megawatts to a nameplate capacity of 435 megawatts. The company became a major contributor to Nigeria’s national grid, accounting for roughly 10 percent of total grid supply at its peak. Financially, Geregu distinguished itself as one of the few GenCos to achieve consistent profitability, reportedly averaging about ₦20 billion in dividends annually.

Industry analysts view Otedola’s exit not as a retreat but as a calculated strategic realignment. In recent years, he has shifted his focus increasingly toward the financial services sector. He currently serves as chairman of First HoldCo, the parent company of First Bank of Nigeria, where he owns a 17.1 percent stake, making him the single largest individual shareholder. His entry into First Bank in 2022 significantly altered the bank’s ownership structure and ushered in a period of recapitalisation, governance reforms, and aggressive balance-sheet clean-up efforts.

The $750 million liquidity unlocked from the Geregu divestment positions Otedola strongly as Nigeria’s banking sector prepares for a fresh wave of recapitalisation and consolidation driven by regulatory requirements. Observers believe the move reflects his assessment that banking and financial services now offer greater upside, influence, and strategic control compared to the capital-intensive and regulation-heavy power sector.

The timing of the deal is also significant for Nigeria’s electricity market. The Federal Government recently announced a ₦4 trillion power-sector liquidity intervention fund, with an initial ₦590 billion already being disbursed to settle GenCo debts and stabilise the sector’s cash flow. Otedola’s exit highlights a broader trend in the industry: early investors from the post-2013 power privatisation era are beginning to reach maturity in their investment cycles. As asset valuations rise and liquidity improves, more exits are expected, paving the way for capital recycling and new entrants.

Beyond Geregu, other major electricity-sector transactions are reportedly in progress. Market watchers note that the planned sale of Eko Electricity Distribution Company to North South Power is nearing completion, with about ₦150 billion already received. Together, these developments point to a period of heightened investor activity, ownership restructuring, and gradual improvement in liquidity conditions across Nigeria’s power industry.

In sum, Femi Otedola’s exit from Geregu Power is more than a simple sale. It underscores the evolving dynamics of Nigeria’s energy and financial sectors, reflects the maturation of post-privatisation power investments, and signals a decisive shift of capital and attention toward banking, where Otedola appears poised to play an even more influential role in the years ahead.