Otedola sells shares in Geregu power for N1trn
Billionaire investor Femi Otedola has sold a majority stake in Geregu Power Plc in a landmark transaction valued at N1.088 trillion, marking one of the largest deals in Nigeria’s power sector.
The Nigerian Exchange Limited (NGX) disclosed the development in a notice issued on Monday, confirming that the transaction was financed by a consortium of banks led by Zenith Bank Plc.
Prior to the sale, Otedola’s investment vehicle, Amperion Power Distribution Company Limited, held close to 80 per cent of Geregu Power, one of Nigeria’s leading power generation companies. The divestment significantly reduces his controlling interest, although he is understood to have retained a minority shareholding in the company.
Market sources say the move signals a strategic shift by Otedola, who is expected to focus more aggressively on expanding his footprint in Nigeria’s banking industry. Otedola is currently the Chairman of First Holdco Limited, the parent company of First Bank of Nigeria Plc, and has steadily increased his influence within the financial institution over the past few years.
The businessman is reported to own 17.01 per cent of First Bank, making him the bank’s single largest shareholder since its establishment in 1894. Analysts view the Geregu Power stake sale as a move to free up capital for further investments in the financial services sector, where Otedola has been strengthening his position.
Despite scaling down his involvement in Geregu Power, industry watchers note that Otedola’s continued minority stake suggests he remains confident in the long-term prospects of Nigeria’s power sector, even as his primary attention shifts toward banking and financial services.
