Optimism has swept through Nigeria’s power sector and capital market, following the acquisition of majority control of Geregu Power Plc by MA’AM Energy Limited in a landmark transaction valued at about $750 million (N1.1 trillion), one of the largest private equity deals ever recorded in the country’s electricity industry.

The deal, which signals renewed confidence in the power market, was disclosed in a regulatory filing to the Nigerian Exchange (NGX), where Geregu Power announced a change in the ultimate beneficial ownership of its majority shareholder. Amperion Power Distribution Company Limited, formerly owned by billionaire businessman Femi Otedola, underwent an ownership restructuring concluded on December 29, 2025.

Under the transaction, MA’AM Energy Limited, an Abuja-based integrated energy company, acquired a 95 per cent equity stake in Amperion Power Distribution Company, thereby assuming indirect control of Geregu Power. Although there was no direct transfer of Geregu Power shares, the transaction resulted in a change in the beneficial ownership of about 77 per cent of the company’s issued share capital.

The acquisition, financed by a consortium of Nigerian banks with Blackbirch Capital acting as financial adviser, has been widely interpreted as a strong vote of confidence in the long-term prospects of the electricity market and a boost to domestic private capital participation in critical infrastructure.

Following the change in ownership, the Otedola-led board resigned, paving the way for a new board appointed by MA’AM Energy. The board is chaired by Senator Abdul-Aziz Yari, former Governor of Zamfara State and current senator representing Zamfara West, bringing a mix of political influence, governance experience and financial expertise.

Other non-executive directors include: Abdulkadeer Njiddah, a chartered accountant and academic with a PhD in Accounting and Finance; Usman Mohammed, a veteran infrastructure finance expert with over three decades of experience in power sector reform; Mohammed Sani Jaafaru, an energy executive with an MBA in Finance; Neka Adogu, a seasoned banker and former Access Bank general manager; and Mahmud Magaji, a Senior Advocate of Nigeria with expertise in international dispute resolution. Outgoing Chief Executive Officer, Mr. Akin Akinfemiwa, and Deputy CEO, Dr. Julius Omodayo-Owotuga, were retained to ensure management continuity.

Market analysts say the transaction could mark a turning point for the power sector. Managing Director of GTI Capital, Mr. Kehinde Hassan, described the deal as a new benchmark for generation company valuations.

“A $750 million transaction in a sector often considered high-risk sends a powerful signal about the underlying value of Nigeria’s electricity market. It could stimulate further mergers and acquisitions, attract private equity interest and reshape asset pricing across the power value chain,” Hassan said.

He added that the timing of the acquisition, coinciding with the Federal Government’s plans for a N4 trillion power-sector liquidity fund, positions the industry as increasingly attractive to private capital, though investors will closely watch the new owners’ strategic direction, governance standards and commitment to Geregu’s dividend culture and expansion plans, including the proposed Geregu II and III projects.

He however pointed out that with the shift in ownership, the market is expected to adopt a cautious, observant stance as it awaits clarity on the new owners’ strategic direction.

He noted that while a key focus for investors would be governance and management continuity, stakeholders would be watching closely to see whether the new leadership will maintain Geregu’s strong dividend culture, operational efficiency and commitment to expansion pipeline, including the proposed Geregu II and III projects.

Managing Director, HighCap Securities, Mr. David Adonri, also echoed a similar sentiment, noting that stakeholders are eagerly waiting for the new board’s strategic plan.

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Shareholders said they expected stronger value creation. With a free float of about 19 per cent, Geregu Power has substantial minority retail shareholders.

President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr Faruk Umar, said the size and nature of the deal were quite symbolic for the Nigerian economy, the power sector and the capital market.

He noted that with the broad experience of the new board and the strategic assets under Geregu, the market expectation was high.

He said such huge investment of above N1 trillion by Nigerians in a Nigerian company, especially in the critical power sector, primarily deserves commendation, describing it as a good response to President Tinubu’s quest to deepen domestic private investments.

According to him, when Nigerians show willingness to participate in the country’s infrastructural development, such a move carries not only the potential value creation, but also reinforcement of hope and confidence in the long-term outlook of the economy.

He urged the new owners to adopt best practices in stakeholders’ management through fair consideration for all and inclusive engagement.

National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Mr. Moses Igbrude, expressed a similar sentiment.

He noted that the $750 million Geregu transaction was a huge transaction that would define investments in the electricity sector as it might trigger other similar transactions soon.

He nonetheless said minority shareholders were concerned about the new core investors and their plans.

“My sincere appeal to them is for them to act in good faith and pilot the affairs of the company in proper manner in line with good governance that brings benefit to all stakeholders,” Igbrude said.

Geregu Power remains one of Nigeria’s most profitable power generation companies. By the third quarter ended September 30, 2025, it reported revenue of N131.47 billion, profit before tax of N37.46 billion and profit after tax of N25.1 billion, with total assets of N273.15 billion.

For the first quarter ending March 31, 2026, the company projected revenue of N57.12 billion and profit after tax of N12.03 billion, underscoring the high expectations now riding on its new ownership.

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