Fund for Export Development in Africa receives approval to acquire minority stake in Femi Otedola’s Geregu Power Plc
The Fund for Export Development in Africa (FEDA) has stated that, subject to adequate due diligence and documentation, it has secured internal clearances to purchase a strategic minority investment in Geregu Power Plc.
With the goal of increasing intra-African commerce, export development, and industrialization in Africa, FEDA is the African Export-Import Bank’s (Afreximbank’s) platform for development impact investments.
FEDA has strategically chosen to support prominent energy platforms across Africa, including the renewables and transition fuels sectors, as part of its intervention efforts in the African energy sector. In order to realize Nigeria’s power sector roadmap, Geregu Power, one of the country’s top power generation firms with a capacity of more than 430 megawatts, is a very strategic asset. In order to help the company grow over the coming years, FEDA intends to act as a minority investor and collaborate with the current owners and management.
As the pioneer Power Generation Company on the Nigerian Exchange Limited (NGX), the interest shown by FEDA is an expression of its firm belief not only in the Company but also in the future of the Nigerian Electricity Supply Industry, said Mr. Femi Otedola CON, Chairman of the Board of Directors of Geregu Power Plc (NESI).
To obtain this investment from FEDA in a time of declining economic activity globally is testament to our long-term strategic goals and will speed our expansion to the larger West African Market, he continued
We are very happy with this proposed investment, which marks a crucial step towards supporting Nigeria’s power sector and, more broadly, towards advancing Africa’s industrialization and energy security, said Prof. Benedict Oramah, President and Chairman of Afreximbank and Chairman of FEDA platform entities. Africa cannot reach global export competitiveness without sufficient power. The goal of Afreximbank and its affiliates, including FEDA, is to level the playing field so that African goods may compete on a par with goods coming from other markets. We anticipate that the approved investment will help us get closer to that objective.
The planned investment in Geregu Power, according to FEDA CEO Marlène Ngoyi, “shows FEDA’s ability to act in opportunities and sectors that are crucial to advancing the structural transformation of commerce on the continent. In Nigeria’s electricity industry, Geregu Power is a major player. FEDA is glad to collaborate with the business during its upcoming growth phase.
