MA’AM Energy Acquisition of Geregu Power Heralds New Era for Nigeria’s Energy Sector
The Nigerian capital market and its minority investor community are abuzz with optimism following the significant acquisition of majority shareholding in Geregu Power Plc by MA’AM Energy Limited. This landmark transaction is being viewed as a substantial boost for the nation’s power sector, potentially signalling the dawn of a new era for electricity generation and distribution.
Stakeholders, in recent discussions, highlighted that the takeover of Geregu Power, one of only two power companies publicly listed on the Nigerian Exchange Limited (NGX), could be a pivotal moment. The acquisition, valued at an impressive $750 million, was financed by a consortium of Nigerian banks, with Blackbirch Capital serving as the financial adviser.
The corporate disclosure filed with the NGX by Geregu Power revealed that its majority shareholder, Amperion Power Distribution Company Limited, previously owned by billionaire businessman Femi Otedola, underwent a significant ownership restructuring. This restructuring culminated in a share sale and acquisition that concluded on December 29, 2025.
Through this transaction, MA’AM Energy Limited secured a commanding 95 per cent equity interest in Amperion Power Distribution Company. Consequently, the indirect controlling interest in Geregu Power, which was formerly held by Calvados Global Services Limited and Femi Otedola, has now been transferred to MA’AM Energy Limited. While the deal did not involve the direct sale of Geregu Power shares, the change in ownership of its majority shareholder has effectively transferred the ultimate beneficial ownership of 77 per cent of Geregu Power’s issued share capital.
Setting New Benchmarks and Signalling Potential
The implications of this acquisition extend far beyond Geregu Power itself. Kehinde Hassan, Managing Director of GTI Capital, believes the transaction sets a new benchmark for the valuation of power-generating companies in Nigeria.
“It is likely to influence future mergers and acquisitions, stimulate private equity interest, and reshape asset pricing across the power sector,” Hassan stated. He added that a $750 million investment in a sector often perceived as ‘high-risk’ sends a powerful message about the underlying potential and long-term value of Nigeria’s electricity market.
Hassan further elaborated on the broader impact:
* Catalyst for Further Deals: The acquisition could spur more mergers and acquisitions involving both Generation Companies (GenCos) and Distribution Companies (DisCos).
* Renewed Investor Interest: It is expected to attract renewed interest from domestic institutional investors.
* Recapitalisation Efforts: The deal may encourage recapitalisation initiatives across the entire power sector value chain.
Furthermore, Hassan pointed out that this transaction occurs at a strategic time, coinciding with the Federal Government’s plans for a N4 trillion power sector liquidity fund. This confluence of events positions the sector as increasingly receptive to private equity and a prime target for substantial financial investment.
Stakeholder Expectations and Governance Concerns
Despite the prevailing optimism, a degree of cautious observation is anticipated from the market. Investors are keen to understand the strategic direction of the new owners and whether they will uphold Geregu Power’s established dividend culture, maintain its operational efficiency, and continue its commitment to expansion projects, including the proposed Geregu II and III initiatives.
David Adonri, Managing Director of HighCap Securities, echoed this sentiment, noting that stakeholders are eagerly awaiting the unveiling of the new board’s strategic plan. For minority shareholders, the primary expectation is enhanced value creation.
Moses Igbrude, National Coordinator of the Independent Shareholders Association of Nigeria, projected that the $750 million deal could indeed trigger similar transactions within the sector. He appealed to the new management to “act in good faith and pilot the affairs of the company in a proper manner in line with good governance that brings benefit to all stakeholders.”
Dr. Faruk Umar, President of the Association for the Advancement of Rights of Nigerian Shareholders (AARNS), described the deal’s size and nature as highly symbolic for Nigeria’s economy, its power sector, and its capital market. He commended the investment as a positive response to President Bola Tinubu’s drive to deepen domestic private investments.
“When Nigerians show willingness to participate in the country’s infrastructural development, such a move carries not only the potential for value creation but also reinforcement of hope and confidence in the long-term outlook of the economy,” Umar remarked. He also urged the new owners to embrace best practices in stakeholder management, ensuring fair consideration and inclusive engagement for all parties involved.
New Leadership and Financial Performance
MA’AM Energy Limited is an integrated energy company headquartered in Abuja. Following the change in beneficial ownership, the Femi Otedola-led board of Geregu Power resigned with immediate effect. This paved the way for MA’AM Energy to appoint a new board of directors.
The new leadership is headed by Senator Abdul-Aziz Yari, former Governor of Zamfara State and current Senator representing Zamfara West. The board also includes:
* Abdulkadeer Njiddah: Principal Partner at Abdulkadeer & Co.
* Usman Mohammed: An expert in infrastructure and private financing solutions, holding a PhD in Finance.
* Mohammed Jaafaru: Chief Operations Officer at Advance Link Petroleum Limited.
* Neka Adogu: A banker with over two decades of experience.
* Mahmud Magaji: A Senior Advocate of Nigeria.
In a move aimed at ensuring a seamless transition, the outgoing Chief Executive Officer, Mr. Akin Akinfemiwa, and Deputy Chief Executive Officer, Dr. Julius Omodayo-Owotuga, have been retained to work alongside the newly appointed board.
Geregu Power’s financial performance remains robust. In its third-quarter financials for 2025, the company reported total revenue of N131.47 billion, with Profit Before Tax at N37.46 billion and Profit After Tax reaching N25.09 billion. Total assets stood at N273.15 billion as of September 2025, an increase from N243.47 billion recorded at the end of December 2024.
Looking ahead, Geregu Power projected strong performance for the first quarter ending March 31, 2026. The company anticipated total revenue of N57.12 billion for the three-month period. Gross profit was estimated at N22.88 billion, with operating profit, profit before tax, and profit after tax expected to be N18.12 billion, N17.06 billion, and N12.03 billion, respectively. These figures underscore the underlying financial strength of the company, providing a solid foundation for its new ownership.
