THIS DAWN — Billionaire businessman Femi Otedola has sold his majority stake in Geregu Power Plc for N1.088 trillion, marking one of the largest transactions in Nigeria’s energy sector. The deal, announced by the Nigerian Exchange (NGX) on Monday, was financed by a consortium of banks led by Zenith Bank Plc.
Otedola’s investment vehicle, Amperion Power Distribution Company Ltd, previously held nearly 80 percent of Geregu Power. While he has divested most of his shares, sources indicate that he still retains a minority interest in the company.
Strategic Shift to Banking
TheCable reports that Otedola, who also serves as chairman of First Holdco Ltd—parent company of First Bank of Nigeria Plc—is now expected to concentrate on expanding his footprint in the banking sector. He currently owns 17.01 percent of First Bank, making him the single largest shareholder since the institution’s founding in 1894.
From Oil to Power
Otedola’s business journey began in the energy sector. In 2003, he founded Zenon Oil, which quickly grew to dominate Nigeria’s diesel market, controlling about 93 percent of supply. He later acquired African Petroleum (AP) in 2007, rebranding it as Forte Oil before exiting in 2019 to pivot into power generation.
Under his leadership, Geregu Power transformed from a struggling plant generating 80MW to a robust facility producing 435MW, cementing its role as a key player in Nigeria’s electricity supply.
Banking Success
Otedola’s strategic bet on First Bank has also paid off handsomely. When he began investing, the share price stood at N5. As of last Friday, it closed at N53, underscoring the value of his stake and his growing influence in Nigeria’s financial sector.
