Stakeholders in the Nigerian capital market have expressed optimism over the acquisition of majority shareholding in Geregu Power Plc by MA’AM Energy Limited, saying the development brightens the future of the company.

They stated that though MA’AM Energy, an Abuja-based integrated energy company engaging in electricity generation and supply, energy trading, and marketing, has maintained low public profile, its ability to galvanise consortium of institutional financiers to close one of the country’s biggest private equity deals was an indication of the new investors’ capacity.

Daily Trust reports that Geregu Power which was acquired in 2013 is one of Nigeria’s leading GENCOs using gas turbine as a clean energy source to generate power.

By the third quarter ended September 30, 2025, Geregu Power recorded total revenue of N131.47 billion, with pre and post tax profit of N37.46 billion and N25.1 billion respectively.

Earnings per share was thus at N10.04 by third quarter 2025. Total assets meanwhile stood at N273.15 billion by September 2025, as against N243.47 billion recorded by December 2024.

In a regulatory filing at the Nigerian Exchange (NGX), the board of Geregu Power stated that the company’s majority shareholder, Amperion Power Distribution Company Limited, owned by Lagos billionaire businessman, Femi Otedola, had undergone a restructuring of its ownership following a share sale and acquisition concluded on December 29, 2025.

As a result of the transaction, MA’AM Energy Limited acquired 95 per cent equity interest in Amperion Power Distribution Company, thus the indirect controlling interest in Geregu Power previously held by Calvados Global Services Limited and Otedola was transferred to MA’AM Energy Limited.

While the transaction did not involve the direct sale or transfer of shares of Geregu Power, the change in the ownership of the company’s majority shareholder resulted in a change in the ultimate beneficial ownership of 77 per cent of Geregu Power’s issued share capital.

The transaction was reportedly valued at $750 million or about N1.1 trillion. The acquisition was financed by a consortium of Nigerian banks with Blackbirch Capital as the financial adviser.

With the change in beneficial ownership, the Femi Otedola-led board resigned immediately, paving the way for the appointment of a new board of directors by MA’AM Energy.

The new board is led by Senator Abdul-Aziz Yari, former Governor of Zamfara State and current Senator representing Zamfara West.

Yari, a former chairman of the Nigerian Governors’ Forum, holds MSc in Public Administration, Finance and Investment Management from the University of Salford and a Certificate in Leadership and Change from the London School of Economics, in addition to other foundational education.

Other non-executive directors included Abdulkadeer Njiddah, Principal Partner at Abdulkadeer & Co. (Chartered Accountants) who holds PhD in Accounting and Finance and a fellow of the Institute of Chartered Accountants of Nigeria (ICAN) and Institute of Internal Auditors of Nigeria (FIIA); Usman Mohammed, an expert in infrastructure and private financing solutions and a chartered accountant with PhD in Finance and over 30 years’ experience in power sector utility diagnosis, reform, and transformation and Mohammed Sani Jaafaru, who holds MBA in Finance from Strayer University, Washington D.C and currently Chief Operations Officer at Advance Link Petroleum Limited.

Also on the board as non-executive directors were Neka Adogu, a banker and financier of more than two decades, including as a General Manager at Access Bank Plc, Nigeria’s largest bank by assets and Mahmud Magaji, a Senior Advocate of Nigeria (SAN) and member of the Federal Judicial Service Commission with specialty in international dispute resolution.

Outgoing Chief Executive Officer, Mr Akin Akinfemiwa and Deputy Chief Executive Officer, Dr. Julius Omodayo-Owotuga were retained to facilitate smooth management transition, working with the newly appointed board.

What experts are saying

Experts said the Geregu Power acquisition represents the beginning of a new era for the Nigerian power sector.

Managing Director, GTI Capital, Mr. Kehinde Hassan, said the transaction, valued at approximately $750 million, set a new benchmark for GenCo valuations in Nigeria.

“It is likely to influence future mergers and acquisitions, stimulate private equity interest, and reshape asset pricing across the power sector.

“Beyond Geregu, the deal carries broader implications for the Nigerian power industry. A $750 million investment in a sector often labeled “high-risk” sends a powerful signal about the underlying potential and long-term value of Nigeria’s electricity market.

This could catalyze further GenCo and DisCo acquisitions, attract renewed interest from domestic institutional investors, and spur recapitalization efforts across the value chain,” Hassan, a Fellow of the Institute of Chartered Accountant of Nigeria (ICAN) and Chartered Institute of Stockbrokers (CIS), said.

He also noted the timing of the acquisition. According to him, the acquisition, coming at a time when the Federal Government is planning a N4 trillion power-sector liquidity fund, further positions the sector as increasingly private‑equity friendly and primary target for deeper financial participation.

He however pointed out that with the shift in ownership, the market is expected to adopt a cautious, observant stance as it awaits clarity on the new owners’ strategic direction. (Daily Trust)

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