KEY POINTS
- MA’AM Energy acquired indirect control of Geregu Power.
- The $750m deal resets power-sector valuations.
- Investors are watching the new board’s strategy.
Investors and minority shareholders in Nigeria’s capital market welcome MA’AM Energy Limited’s $750m takeover of Geregu Power Plc and call it a turning point for private capital.
A signal to investors
Market operators and shareholder groups say the acquisition of majority control in Geregu Power could usher in a new phase for Nigeria’s electricity industry.
The deal followed a restructuring of Amperion Power Distribution Company Limited after a share sale completed on 29 December 2025.
Under the deal, MA’AM Energy acquired a 95 percent equity interest in Amperion Power Distribution Company. The transaction moved the indirect controlling stake in Geregu Power from entities tied to billionaire Femi Otedola to MA’AM Energy.
Although the deal did not directly sell Geregu Power shares, it transferred ultimate beneficial ownership of seventy-seven percent of issued share capital.
A consortium of Nigerian banks financed the acquisition, with Blackbirch Capital serving as financial adviser. People familiar with the transaction put its value at about $750m, a figure that has drawn sustained attention across the market.
Kehinde Hassan, managing director of GTI Capital, said the valuation sets a new reference point for power-generating companies in Nigeria. He said the transaction could shape future mergers and acquisitions, draw fresh private equity interest and influence how power assets are priced.
Power sector implications
Hassan added that a $750m investment in a sector often viewed as high risk sends a strong signal about long-term prospects for Nigeria’s electricity market. He said the deal could encourage further acquisitions involving generation and distribution companies and attract domestic institutional investors.
The federal government plans a ₦4tn power-sector liquidity fund to encourage private equity and financial participation. Hassan said the fund may strengthen investor interest while boosting involvement across the power sector value chain.
He added that investors will closely monitor the new owners’ strategy, including dividend policies and proposed Geregu II and III projects.
David Adonri, managing director of HighCap Securities, said shareholders await the new board’s strategic direction to assess future performance.
Meanwhile, minority investors focus on stronger value creation as they evaluate the company’s plans under the new ownership. Shareholder advocates echoed similar views, emphasising the importance of governance and transparency in the transition.
Moses Igbrude, national coordinator of the Independent Shareholders Association of Nigeria, said the deal could inspire similar transactions in the sector.
He urged the new owners to uphold strong governance and prioritize stakeholder interests in managing Geregu Power effectively.
Faruk Umar, president of the Association for the Advancement of Rights of Nigerian Shareholders, said the transaction reflected confidence in the economy.
Umar added that the deal reinforced opportunities for long-term value creation in Nigeria’s power sector.
New board and company performance
Following the ownership change, the Otedola-led board resigned, making way for a new board appointed by MA’AM Energy.
Senator Abdul-Aziz Yari chairs the board, alongside professionals from finance, law and energy. Existing executives, including Chief Executive Officer Akin Akinfemiwa, were retained to ensure continuity.
Geregu Power reported revenue of N131.47bn in the third quarter of 2025, with profit after tax of N25.09bn. For the first quarter ending March 2026, the company forecast revenue of N57.12bn.
