Femi Otedola has realized approximately N896.5 billion in capital gains from divesting his majority ownership in Geregu Power Plc, marking one of Nigeria’s largest private power sector transactions in recent memory.
The Nigerian billionaire sold his controlling interest through Amperion Power Distribution Company Limited, delivering a 5.7-fold return on his original investment from the company’s 2022 public listing.
Transaction Details
Company records show Otedola and affiliated entities controlled 1,909,709,273 shares—representing 76.388% of Geregu Power’s issued capital—as of September 30, 2025. He divested approximately 95% of this holding, totaling around 1.814 billion shares, in a $750 million deal with MA’AM Energy Limited, which assumes control of the company.
Financial Analysis
When Geregu Power went public in October 2022, it listed 2.5 billion shares at N100 each, establishing a N250 billion market valuation.
- Otedola’s initial stake was worth approximately N190.97 billion at listing, with the 95% portion sold carrying an entry value of N181.4 billion.
- At the 2022 official exchange rate of N450/$1, the dollar-equivalent cost basis for the 95% stake was roughly $403 million. With an exit value of $712.5 million (accounting for potential transaction fees from the $750 million headline figure), this represents a $309 million gain—a 77% dollar return.
- Using the parallel market rate of N736/$1 from that period, the dollar cost basis falls to approximately $246 million, increasing dollar gains to $466 million. This demonstrates how naira devaluation substantially magnified local currency returns.
- In naira terms, the sale price at an estimated N1,450/$1 exchange rate equals a gross value of N1.0875 trillion, producing a capital gain of N896.5 billion—approximately a 469% return over three years.
Stock Performance
Geregu Power has emerged as one of Nigeria’s top-performing equities since its 2022 debut. The company’s market capitalization expanded from N250 billion at listing to N2.85 trillion by late 2025, fueled by operational improvements, capacity additions, and regular dividend distributions.
Additional Returns
Beyond share appreciation, Otedola benefited from dividend income throughout his ownership. Geregu maintained consistent profit distributions, including a N21.25 billion final dividend for 2024 (N8.50 per share), with annual dividends averaging around N20 billion in recent years. While retained earnings exceeding N50 billion represent non-cash value creation, they supported the company’s premium valuation in the transaction.
Otedola originally acquired Geregu through Amperion Power in 2013 as part of Nigeria’s power sector privatization, converting over a decade of strategic positioning into substantial financial gains.
Impact on Billionaire Rankings
The transaction reinforces Otedola’s status among Nigeria’s leading entrepreneurs. According to Forbes, Africa’s billionaires now hold a combined net worth of $82.4 billion, with gains partly attributed to his reemergence on the list.
Otedola returned to the Forbes billionaire rankings with a $1.2 billion valuation as Nigeria’s fourth-richest individual, after his absence since 2017. Africa’s aggregate billionaire wealth stood at $81.5 billion in 2023 before his reentry. Currently valued at $1.1 billion, his strategic pivot from oil assets in 2013 toward power and infrastructure has proven highly profitable.
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