Femi Otedola Set to Receive Over ₦20 Billion as Geregu Power Proposes ₦8.50 Dividend

Femi Otedola, one of Nigeria’s most prominent investors and a dominant force in the country’s energy sector, is set for a substantial windfall as Geregu Power Plc proposes a final dividend of ₦8.50 per share for the 2024 financial year. Based on his 95.56% controlling stake in the company, Otedola stands to receive approximately ₦20.3 billion in dividends—one of the largest single payouts to any individual investor on the Nigerian Exchange (NGX).

Geregu Power: Otedola’s High-Value Energy Bet

Geregu Power, Nigeria’s first publicly listed power generation company, made its debut on the NGX Main Board in October 2022, marking a historic milestone for the country’s capital market and the underrepresented power sector. The listing was widely seen as a move to enhance transparency, attract institutional investors, and raise capital for future expansion.

The company operates the Geregu Power Plant, which has an installed capacity of 435MW, contributing critical generation capacity to Nigeria’s fragile national grid. Geregu Power’s revenue stream is largely derived from power sales to the Nigeria Bulk Electricity Trading (NBET) Plc under the country’s transitional electricity market framework.

Despite the challenging operating environment which includes gas supply disruptions, foreign exchange volatility, and payment delays within Nigeria’s power value chain Geregu Power has maintained a track record of strong financial performance, translating into consistent dividend payments since its listing.

The Structure Behind the ₦20 Billion Payout

Femi Otedola’s majority ownership of Geregu Power is held through Amperion Power Distribution Limited, the special purpose vehicle (SPV) through which he made his initial investment in the company. According to Geregu Power’s 2023 Annual Report, Amperion owns 95.56% of the company’s 2.5 billion issued shares. This translates to approximately 2.39 billion shares under Otedola’s effective control.

With Geregu proposing a dividend of ₦8.50 per share, the total dividend payout amounts to ₦21.25 billion. Based on his ownership stake, Otedola’s direct share of the proposed dividend comes to about ₦20.3 billion.

This massive cash payout further solidifies Geregu Power’s status as one of the most investor-friendly companies in Nigeria’s power sector, while also reinforcing Otedola’s confidence in the long-term profitability and growth prospects of the business.

A History of Strategic Moves

Otedola’s acquisition of Geregu Power dates back to 2013, when Amperion acquired the plant during Nigeria’s power sector privatization programme. At the time, the move was considered a bold pivot for Otedola, who had previously built his fortune in oil marketing through Zenon Petroleum and his leadership at Forte Oil Plc.

Over the years, he expanded Geregu’s installed capacity, secured gas supply agreements, and navigated the plant’s integration into Nigeria’s troubled electricity market. By taking Geregu Power public in 2022, Otedola unlocked liquidity, enhanced corporate governance, and positioned the company to raise future capital for expansion or acquisition opportunities.

Dividends and Wealth Creation

For Otedola, the proposed ₦20.3 billion dividend is part of a broader investment playbook: building strategic stakes in critical infrastructure assets, unlocking their value through corporate restructuring and public listing, while retaining majority control to enjoy substantial cash returns.

The Geregu dividend continues a trend of handsome payouts to Otedola from the power firm. In 2023, he reportedly earned ₦19 billion in dividends from the company’s performance for the previous year.

Geregu’s Appeal to Other Investors

Beyond Otedola’s personal windfall, the ₦8.50 dividend represents a solid return for all shareholders, offering a dividend yield that places Geregu Power among the top-yielding stocks on the Nigerian Exchange.

This is particularly attractive in a volatile macroeconomic environment, where currency devaluation and rising inflation have eroded the real value of many assets.

Geregu’s reliable dividend policy is expected to strengthen its appeal to pension funds, asset managers, and high-net-worth investors seeking exposure to defensive sectors with hard currency revenue potential from future electricity exports to the West African Power Pool (WAPP).

Looking Ahead: AGM and the Path Forward

The proposed dividend will be formally presented to shareholders for approval at Geregu Power’s Annual General Meeting (AGM) scheduled for March 26, 2025. Alongside the dividend resolution, shareholders will vote on the re-appointment of key directors, including Mr. Paul Gbededo and Ms. Olawunmi Otedola, the daughter of Femi Otedola, to the Board of Directors.

As Femi Otedola prepares to receive over ₦20 billion from this dividend payout, Geregu Power’s performance and investor returns offer a compelling case study in how strategic ownership, operational focus, and capital market access can unlock wealth in Nigeria’s complex power sector. For shareholders and market watchers alike, Geregu Power Plc remains a stock to watch.

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