December 30, (THEWILL) — Billionaire investor and chairman of Geregu Power Plc, Femi Otedola, has divested a 77 percent equity stake in the power generation company, significantly reducing his ownership in one of Nigeria’s largest publicly listed power assets.
Details of the divestment were disclosed in a regulatory filing to the Nigerian Exchange (NGX), which showed that the transaction involved a substantial offloading of shares held by entities linked to Otedola.
The move represents one of the most notable insider equity transactions in the Nigerian power sector in recent years.
Geregu Power, which operates the 434-megawatt Geregu gas-fired power plant in Kogi State, was listed on the NGX in October 2022 and has since become one of the exchange’s most capitalised non-bank stocks.
Otedola had previously held a dominant controlling interest in the company following its listing.
Market analysts interpret the divestment as part of broader portfolio rebalancing by the investor, potentially aimed at unlocking value, improving liquidity in the stock, or reallocating capital to other strategic investments.
The transaction is also expected to widen Geregu Power’s free float, which could enhance trading activity and institutional participation in the stock.
Despite the reduction in equity holding, market watchers say the development does not necessarily signal a loss of confidence in the company’s fundamentals, as Geregu Power continues to benefit from strong cash generation, rising electricity demand, and reforms in Nigeria’s power sector.
The divestment comes amid increased investor focus on insider dealings, corporate governance, and ownership structure across the Nigerian capital market.
Ogochukwu Onwaeze
