MA’AM Energy’s $750m Acquisition of Geregu Boosts Investor Optimism

Minority investors and capital market operators have expressed strong optimism over MA’AM Energy Limited’s acquisition of a majority stake in Geregu Power Plc, describing the transaction as a significant boost for Nigeria’s power sector.

Stakeholders who spoke separately said the takeover of Geregu Power—one of only two power generation companies listed on the Nigerian Exchange Limited—could signal the start of a new phase for the country’s electricity industry.

According to disclosures filed on the NGX, Geregu Power’s majority shareholder, Amperion Power Distribution Company Limited, previously owned by billionaire businessman Femi Otedola, underwent a restructuring following a share sale and acquisition concluded on 29 December 2025.

Under the transaction, MA’AM Energy Limited acquired a 95 per cent equity stake in Amperion Power Distribution Company, resulting in the transfer of indirect controlling interest in Geregu Power from Calvados Global Services Limited and Otedola to MA’AM Energy. Although there was no direct sale of Geregu Power shares, the ownership change at the holding company level led to a shift in the ultimate beneficial ownership of 77 per cent of Geregu Power’s issued share capital. The deal was valued at about $750m and financed by a consortium of Nigerian banks, with Blackbirch Capital acting as financial adviser.

Commenting on the transaction, the Managing Director of GTI Capital, Kehinde Hassan, said the deal set a new benchmark for the valuation of power generation companies in Nigeria.

He noted that the acquisition could influence future mergers and acquisitions, stimulate private equity participation, and reshape asset pricing across the power sector. According to him, a $750m investment in a sector often viewed as high-risk sends a strong signal about the long-term potential of Nigeria’s electricity market. He added that the deal could encourage further acquisitions among generation and distribution companies, attract renewed interest from domestic institutional investors, and support recapitalisation across the value chain.

Hassan also observed that the timing of the transaction aligns with the Federal Government’s plans for a ₦4tn power-sector liquidity fund, further positioning the industry as increasingly attractive to private equity investors. However, he cautioned that the market may adopt a wait-and-see approach as investors look for clarity on the new owners’ strategic direction, including whether Geregu Power’s dividend culture, operational efficiency, and expansion plans—such as the proposed Geregu II and III projects—will be sustained.

Similarly, the Managing Director of HighCap Securities, David Adonri, said stakeholders are keenly awaiting the strategic roadmap of the new board, with minority shareholders particularly focused on stronger value creation.

The National Coordinator of the Independent Shareholders Association of Nigeria, Moses Igbrude, projected that the $750m deal could spark similar transactions within the sector. He urged the new owners to operate with transparency and strong corporate governance in a manner that benefits all stakeholders.

Also reacting, the President of the Association for the Advancement of Rights of Nigerian Shareholders, Faruk Umar, described the scale and nature of the transaction as symbolic for the Nigerian economy, the power sector, and the capital market. He commended the investment as a positive response to efforts aimed at deepening domestic private participation in infrastructure development, noting that such commitments help reinforce confidence in the long-term outlook of the economy. He further called on the new owners to adopt inclusive stakeholder engagement practices.

MA’AM Energy is an Abuja-based integrated energy company. Following the change in beneficial ownership, the Otedola-led board resigned with immediate effect, allowing MA’AM Energy to appoint a new board of directors. The new board is chaired by Senator Abdul-Aziz Yari, former Governor of Zamfara State and current Senator representing Zamfara West.

Other non-executive directors include Abdulkadeer Njiddah, Principal Partner at Abdulkadeer & Co.; Usman Mohammed, a chartered accountant with a PhD in Finance; Mohammed Jaafaru, Chief Operations Officer at Advance Link Petroleum Limited; banker Neka Adogu; and Mahmud Magaji, a Senior Advocate of Nigeria. The outgoing Chief Executive Officer, Akin Akinfemiwa, and Deputy Chief Executive Officer, Julius Omodayo-Owotuga, were retained to ensure a smooth management transition in collaboration with the new board.

Meanwhile, Geregu Power’s third-quarter 2025 financial results showed total revenue of N131.47bn, with profit before tax of N37.46bn and profit after tax of N25.09bn. Total assets stood at N273.15bn as of September 2025, up from N243.47bn recorded in December 2024.

For the first quarter ending 31 March 2026, the company projected total revenue of N57.12bn. Gross profit was estimated at N22.88bn, while operating profit, profit before tax, and profit after tax were forecast at N18.12bn, N17.06bn, and N12.03bn, respectively.