It would appear that Femi Otedola’s middle name must be Midas or something of that nature, because with the hundreds of millions of dollars in gains, that analysts estimate that he made from the running and sale of Forte Oil, his strategic entry into First Bank of Nigeria (via FirstHoldCo Plc), where he became the largest individual shareholder and later chairman, and now, the sale of the Geregu power plant for a whopping $750 million, he does in my own estimate, merit a comparison with the legendary Greek King, whose hand turned to gold everything he touched. Perhaps a history lesson would help us to better appreciate this landmark deal, which happens to be one of the largest private power sector transactions in Nigeria’s history.
The Geregu power plant was originally set up in 2006, along Itobe – Ajaokuta Express Road, Ajaokuta, Kogi State by the Federal Government of Nigeria. It was set up as part of the National Integrated Power Projects (NIPP) aimed at expanding generation capacity. Geregu at its inception, consisted of a roughly 414 MW gas‑fired plant. The plant was commissioned in the February of the following year.
In 2013, during Nigeria’s power sector privatization, the plant was sold to Amperion Power Distribution Company Ltd which was a subsidiary of Forte Oil Plc. For this acquisition, Amperion paid $132 million, financed partly through equity and bank loans.
Between 2014 and 2018, Amperion carried out extensive operational restructuring and capacity upgrades. It invested in turbines and efficiency improvements, positioning Geregu as one of Nigeria’s leading GENCOs.
In 2022, Geregu became the first power generation company to list on the Nigerian Exchange (NGX). The listing enhanced its transparency and access to capital. Otedola still had a controlling stake of about 78% in Geregu after the listing.
Between 2023 and 2024, Geregu became one of the most valuable energy companies on NGX, with market cap exceeding ₦2 trillion.
On Dec 29th, 2025 came the announcement of the landmark deal. Otedola sold his controlling stake in Geregu to MA’AM Energy Limited, reaping a $618 million profit on the deal. MA’AM Energy Limited is backed by Senator Abdulaziz Yari, former governor of Zamfara State, who has emerged as chairman of the company following the $750 million acquisition. MA’AM Energy acquired 95% of Amperion Power Distribution Company Ltd, which translated into a 77% controlling stake in Geregu Power Plc.
The $750 million sale of Geregu Power Plc to MA’AM Energy underscores investor confidence in the sector despite its challenges (tariff disputes, gas supply constraints, transmission bottlenecks), but also raises questions about governance, regulatory stability, and whether new ownership will translate into improved supply for consumers. Senator Yari’s political connections may help secure regulatory support, but could also raise concerns about transparency and independence. Whether this deal will be a success for MA’AM Energy will depend on its ability to deliver operational improvements, not just financial restructuring.
The Geregu deal highlights a trend of consolidation and restructuring in Nigeria’s power industry. There have been similar cases of consolidation and restructuring in the past. For instance, Transcorp Plc acquired the Ughelli Power Plant during the privatization exercise in 2013. By 2023, it had consolidated its power assets (Transcorp Power Ltd and Transcorp Energy Ltd), strengthening its position as one of Nigeria’s largest independent power producers. In another instance, the Federal Government restructured agreements concerning the Mambilla Hydropower Project, bringing in new Chinese partners (China Gezhouba Group, Sinohydro), in a bid to attract financing.
In yet another instance, Mainstream Energy Solutions Ltd acquired concessions for the Kainji and Jebba hydropower plants in 2013. Over time, Mainstream consolidated operations, expanded capacity, and attracted new financing partners. Then there was the case of North South Power taking over the Shiroro Hydropower Plant in 2013, and by 2018 had restructured ownership and financing to expand operations and improve efficiency.
Our last example is that of the Azura-Edo Independent Power Project (IPP), which was developed as Nigeria’s first large-scale IPP. In 2019, its ownership and financing were restructured, with new investors (Actis, Africa50) coming in.
This pattern shows that Nigeria’s power industry is still evolving, with capital inflows, ownership changes, and restructuring deals shaping its future.
So what’s next for Midas…sorry I meant Otedola? Well… after selling his controlling stake in Geregu Power Plc for $750 million, Femi Otedola is expected to redeploy his “war chest” into Nigeria’s financial sector, particularly banking. As previously noted, he is the chairman of FirstHoldCo Plc (parent of First Bank of Nigeria). He has urged higher capital requirements for the banking sector and pledged to raise his stake to over ₦320 billion. With the CBN’s recapitalization deadline looming, he is positioned to be a key consolidator in Nigeria’s banking industry. Energy analysts expect him to anchor the Dangote Refinery IPO when it eventually lists, leveraging his liquidity and energy expertise. His track record in oil trading and power generation makes him a natural investor in downstream and integrated energy projects.
Whatever Otedola decides to do next, we can be sure that it will rewrite Nigeria’s business history books.
