Big business decisions in Nigeria rarely pass quietly. They often trigger questions in the market, especially when they involve companies tied to power supply, one of the country’s most sensitive sectors.
Femi Otedola’s exit from Geregu Power Plc is one of those moves.
The businessman has now explained why he sold his controlling interest in the power company, saying the decision was part of a wider shift in how he is arranging his investments.
Otedola said the sale was not driven by any crisis in the business. Instead, he described it as a planned move to re-organise his portfolio and focus on other areas where he sees stronger future value.
He stressed that investment is about timing and direction, not emotional attachment to any single asset.
“Business is about knowing when to enter and when to step back,” he said while speaking on the transaction.
His exit came through the sale of his stake in Amperion Power Distribution Company Limited, which holds majority ownership in Geregu Power Plc. That transaction led to MA’AM Energy Limited taking over control of Amperion.
Despite the ownership change, Geregu Power remains listed on the Nigerian Exchange and continues its normal operations.
Otedola first entered the power sector in 2013 when he acquired Geregu during the federal government’s privatisation of former Power Holding Company of Nigeria assets. At the time, the sector was still unstable, with many investors cautious about long term returns.
Over the years, Geregu Power grew into one of the more stable generation companies in the country. It expanded operations, improved performance, and later became a listed company in 2022, drawing strong attention from investors.
The company also became one of the better-performing stocks on the Nigerian Exchange, especially after its listing, as investors responded to its steady earnings and strong market position.
For Otedola, the exit marks the end of a major phase in his involvement in Nigeria’s electricity sector.
Market observers say the move reflects a common pattern among major investors who enter early, build value, and later step aside once the business becomes stable and attractive to institutional investors.
“He built value in the sector and is now moving capital elsewhere,” a market analyst said.
In recent years, Otedola has also shown increased interest in other sectors, especially financial services, where he has taken on stronger positions and influence.
His departure from Geregu comes at a time when Nigeria’s power sector still faces major challenges, including gas supply issues, tariff debates, and an unstable national grid that affects supply across the country.
Even with these challenges, some generation companies have continued to report strong financial results, showing a mix of operational strength and structural weakness in the sector.
Geregu itself remains in operation, with no change to its daily activities or market listing structure. What has changed is ownership control, not the company’s core operations.
The transaction also highlights how Nigeria’s privatised infrastructure assets continue to move between private investors over time, depending on market conditions and long term strategies.
For now, Otedola’s exit closes a long chapter in the story of Geregu Power, while opening another question about where his next major investment focus will land.
