Billionaire businessman Femi Otedola has earned about N896.5 billion from the sale of his controlling stake in Geregu Power Plc, marking one of the largest private exits in Nigeria’s power sector in recent years.
The divestment was carried out through the sale of his indirect holdings in Amperion Power Distribution Company Limited and represents a 5.7 times return on his initial investment made when the company listed in 2022.
Company filings show that as of September 30, Mr Otedola and his related entities held 1,909,709,273 shares, representing 76.388 percent of Geregu Power’s issued capital.
He reportedly sold 95 percent of this stake, about 1.814 billion shares, in a transaction valued at $750 million to MA’AM Energy Limited, which has now emerged as the controlling shareholder.
Geregu Power listed 2.5 billion ordinary shares at N100 per share in October 2022, giving the company a valuation of N250 billion at listing.
Otedola’s stake at the time was valued at about N190.97 billion, with the portion he later sold having a notional entry value of N181.4 billion.
Using the official exchange rate of about N450 to one dollar in 2022, the dollar cost of the 95 percent stake is estimated at $403 million.
Based on an exit value of about $712.5 million, after adjustments, this implies a dollar gain of roughly $309 million, or a 77 percent return.
At the parallel market rate of N736 to one dollar, the estimated dollar cost drops to about $246 million, increasing the dollar gain to around $466 million.
This highlights the role of foreign exchange depreciation in boosting the naira value of the transaction.
In naira terms, the sale price at an assumed exchange rate of N1,450 to one dollar translates to a gross value of about N1.0875 trillion, resulting in a capital gain of approximately N896.5 billion, or an estimated 469 percent return over three years.
Since its listing, Geregu Power has been one of the strongest performing stocks on the exchange.
The company’s market value rose from N250 billion at listing to about N2.85 trillion by late 2025, supported by operational growth, capacity expansion and regular dividend payments.
Beyond share price gains, Otedola also benefited from dividends. Geregu Power paid a final dividend of N21.25 billion for 2024, equivalent to N8.50 per share, alongside similar payouts in earlier years.
Reports indicate the company has averaged about N20 billion in annual dividends in recent years.
Retained earnings of over N50 billion also contributed to the company’s valuation at exit.
Otedola acquired Geregu Power through Amperion Power in 2013 and has now converted more than a decade of investment into a major financial return.
He is listed among Nigeria’s dollar billionaires on the Forbes index.
Forbes estimates the combined net worth of Africa’s billionaires at $82.4 billion, reflecting gains linked in part to his return to the list.
According to an earlier report, Femi Otedola rejoined the Forbes list a few years ago with a net worth of $1.2 billion, ranking him as Nigeria’s fourth richest person at the time.
Before his return, Africa’s combined billionaire wealth stood at $81.5 billion in 2023.
Otedola, currently valued at about $1.1 billion, had been off the Forbes Africa list since 2017.
His exit from oil assets in 2013, alongside Nigeria’s power sector privatisation, marked a shift toward power and infrastructure investments that has now yielded significant returns.
