Femi Otedola’s Electric Company To Transform Nigeria’s Power Industry

Femi Otedola’s Geregu Power Plc says it will significantly increase its power generation capacity to meet the growing energy demand in the country.

The top-performing power-generating company led by the Nigerian billionaire will over the next two years expand its operations and increase its total capacity from 435 megawatts to an impressive 1,300 megawatts.

The development will also solidify its position as one of the fastest-growing power companies in Africa.

This announcement demonstrates the commitment of the Otedola-led power-generating company to meeting the energy needs of Nigerians. It will also boost its earnings and revenue through continued growth in the power sector.

Speaking on the expansion plans, CEO of Geregu Power Plc, Akin Akinfenwa, said “we want to run a combined circle operation on the basis of the existing plants to ramp up capacity to 1,300 MW. So we are looking at an expansion of 900 MW within a short period of two to three years.”

Otedola’s Geregu Power Plc

Over the years, Geregu Power has become an active player in Nigeria’s energy. The plant has three natural gas-fired power plants with a combined capacity of 435 megawatts, which represents an impressive 10 per cent of the country’s total energy generation capacity.

Geregu Power was recently shortlisted for the acquisition of the highly coveted Geregu II power station, a 507-megawatt natural gas facility located in Kogi State, Nigeria. The acquisition is billed to further enhance the company’s market position.

The company’s expansion plans have attracted several institutional investors, including the five-per cent stake recently acquired by the Fund for Export Development in Africa (FEDA), the impact development arm of the African Export-Import Bank (Afreximbank).

Reports say that the increasing interest from both retail and institutional investors has made Geregu Power witness a significant increase in its share price. The share price rose by 118 per cent from N149 ($0.323) at the start of the year to N325 ($0.7057). The surge has further elevated Geregu Power’s market capitalization to more than $1.7 billion, making it the eighth most valuable company on the Nigerian Exchange.

Source: Business Elites Africa

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