Otedola exits Geregu Power in N1.088trn deal, shifts focus to banking sector

Billionaire businessman Femi Otedola has sold his majority stake in Geregu Power Plc in a transaction valued at N1.088 trillion, marking one of the largest deals in Nigeria’s power sector.

The sale, financed by a consortium of banks led by Zenith Bank Plc, was announced by the Nigerian Exchange (NGX) on Monday.

Otedola’s investment vehicle, Amperion Power Distribution Company Ltd, previously held nearly 80 per cent of Geregu Power. Although he has divested his controlling interest, he is understood to have retained a minority shareholding in the power generation company.

Sources familiar with the transaction said Otedola is now set to concentrate on expanding his footprint in the Nigerian banking sector. He is currently the chairman of First Holdco Ltd, the parent company of First Bank of Nigeria Plc, and owns 17.01 per cent of the bank, making him its single largest shareholder since its establishment in 1894.

Otedola rose to prominence in the energy sector after founding Zenon Oil in 2003, a diesel marketing company that went on to control about 93 per cent of Nigeria’s diesel market. In 2007, he acquired African Petroleum (AP), later rebranded Forte Oil, before exiting the downstream oil business in 2019 to focus on power generation.

Under his ownership, Geregu Power’s output rose significantly from about 80 megawatts to its current capacity of 435MW, following major investments in rehabilitating the previously run-down plant.

In the banking sector, Otedola’s bet on First Bank has paid off handsomely. The bank’s share price stood at about N5 when he began investing but closed at N53 on Friday.

Otedola is also the author of the Amazon bestseller Making It Big: Lessons from a Life in Business.