Geregu Power: What MA’AM’s Takeover Means for Shareholders
With Geregu Power currently valued at about N2.85 trillion and contributing roughly 10 per cent of electricity to the national grid, the implications of MA’AM Energy Limited recent acquisition of the power generation firm transcends well beyond the company’s balance sheet, writes Kayode Toked
Last week, the former Governor of Zamfara State, Senator Abdulaziz Yari emerged as the new chairman of the board of Geregu Power Plc after the exit of Femi Otedola, in a transaction that saw Otedola divest 77 per cent of his controlling stake in the power generation company.
A filing by Geregu Power Plc at the Nigerian Exchange (NGX), showed that the transaction was executed through the sale of Otedola’s 95 per cent stake in Amperion Power Distribution Company Limited to MA’AM Energy Limited, an Abuja-based integrated energy company engaged in electricity generation and supply, energy trading, and marketing.
Aside from Yari who now heads the board, Usman Gur Mohammed as well as Sani Jaafaru and Uzoamaka Adogu, among others, have been appointed as independent non-executive directors of the power company. This therefore means that the indirect controlling interest previously held by Calvados Global Services Limited and Otedola has been transferred to MA’AM Energy.
By any standard, the transaction ranks among the most consequential corporate transactions of 2025. The exit of Otedola, and the emergence of Senator Yari as chairman, following the acquisition of the majority controlling interest by MA’AM Energy Limited, signals not just a change of guard but a new phase in the evolution of Nigeria’s power sector.
Beyond the headlines and the personalities involved, analysts say the transaction underscores a deeper narrative: growing confidence in Nigeria’s electricity market, the maturation of indigenous energy investors, and the increasing role of capital markets in driving long-term infrastructure development.
With Geregu Power currently valued at about N2.85 trillion and contributing roughly 10 per cent of electricity to the national grid, analysts believe the implications of the deal extend well beyond the company’s balance sheet.
Strategic Takeover with Sector-Wide Implications
The transaction, executed on December 29, 2025, saw MA’AM Energy Limited acquire 95 per cent equity interest in Amperion Power Distribution Company Limited, the majority shareholder in Geregu Power Plc. While the deal did not involve a direct transfer of Geregu shares on the Nigerian Exchange, it effectively changed the ultimate beneficial ownership of 77 per cent of the company’s issued share capital.
Stock market analysts describe the deal as a classic example of strategic consolidation in the power sector—one that aligns operational expertise, financial depth and long-term energy planning under a single indigenous platform.
For MA’AM Energy, an Abuja-based integrated energy company with interests spanning electricity generation, trading and marketing, Geregu Power represents a crown jewel asset capable of anchoring its ambition to become a dominant player in Nigeria’s evolving electricity value chain.
Also, Senator Yari as chairman, may bring fresh oversight and networks. A newly reconstituted board could inject different expertise and strategic focus which investors sometimes view as positive if it leads to better decisions on expansion, operations, and profitability.
However, the $750 million transaction reinforced Geregu’s status as a strategic, high-value asset in Nigeria’s energy sector, potentially increasing confidence in its valuation and long-term prospects.
For existing shareholders, this kind of marquee deal validates the company’s worth, even though the shares themselves didn’t trade in this exact transaction.
Research firms on the NGX have noted that Geregu Power is well-positioned to benefit from sector reforms, liquidity improvements, and tariff changes — potentially boosting earnings and dividends. This can be favourable for shareholders as better earnings often lead to higher share prices and dividend potential.
MA’AM Energy’s Strategic Vision and Growth Trajectory
Although Geregu Power has been profitable and stable under its previous ownership, analysts believe MA’AM Energy’s entry could unlock a new growth trajectory.
With an installed nameplate capacity of 435MW and a history of expansion from just 40MW, Geregu has already demonstrated resilience and scalability. However, experts say the next phase will be defined by operational optimisation, gas supply security, efficiency improvements and possible capacity upgrades.
“MA’AM Energy’s integrated business model positions it well to address some of the perennial challenges facing power generation companies, particularly gas sourcing, liquidity constraints and market volatility,” said a leading stockbroker who do not want his name in print.
By leveraging its energy trading and supply expertise, MA’AM is expected to deepen upstream and midstream partnerships, reduce exposure to fuel disruptions and improve plant availability. This, analysts argue, could lead to higher dispatch levels, stronger revenue streams and enhanced operational margins.
Furthermore, the new board composition, featuring experienced independent non-executive directors, is seen as a signal of stronger governance, transparency and long-term strategic planning—key ingredients for sustaining Geregu’s performance in a rapidly changing power market.
Pedigree and Promise of Enhanced Shareholder Value
One of the strongest arguments in favour of the transaction lies in MA’AM Energy’s pedigree as a Nigerian-owned energy firm with deep sectoral knowledge and financial backing.
The acquisition, financed by a consortium of Nigerian banks led by Zenith Bank, reflects strong institutional confidence in MA’AM’s business plan and management capability. Blackbirch Capital’s role as financial adviser further reinforces the deal’s credibility and sophistication.
Market analysts believe this backing provides MA’AM with the balance sheet strength required to fund expansion, manage working capital pressures and pursue value-accretive investments without diluting shareholder interests.
For shareholders of Geregu Power Plc, the focus remains on value creation. Since listing, Geregu has earned a reputation as one of the Nigerian Exchange Limited (NGX) most reliable dividend-paying stocks, averaging about N20 billion in annual dividends.
With MA’AM Energy’s long-term orientation and sector expertise, analysts expect a continuation—and possibly enhancement—of this dividend culture. The emphasis, they say, will likely be on sustainable cash flows rather than short-term speculative gains.
Analysts View on Dividends and Sustainability
Stock market analysts are largely unanimous in their optimism about Geregu Power’s future under the new ownership.
First, the fundamentals remain strong. Geregu operates in a market where demand for electricity far outstrips supply, ensuring consistent offtake for efficient generation companies. Its strategic importance to the national grid further strengthens its revenue outlook.
Second, the regulatory environment, while still evolving, has shown increasing support for cost-reflective tariffs, market reforms and private sector participation. These trends favour well-capitalised and efficiently run generation companies such as Geregu.
Third, MA’AM Energy’s integrated structure could help mitigate some of the liquidity challenges that have historically affected the sector, especially delayed payments within the electricity value chain.
Analysts also point to Geregu’s disciplined cost management, strong corporate governance framework and proven track record of profitability as reasons dividends are likely to remain a central feature of its shareholder proposition.
In their view, the change in ownership does not disrupt the company’s core business model; rather, it strengthens its capacity to withstand sectoral shocks and pursue long-term sustainability.
Defining Economic Development of 2025
Beyond the company itself, the Geregu transaction is being hailed as one of the most significant economic developments in Nigeria in 2025.
At a time when foreign direct investment remains cautious, the deal underscores the growing role of indigenous capital in financing large-scale infrastructure assets. It also highlights the increasing sophistication of Nigeria’s financial markets, where multi-trillion-naira transactions can be executed transparently and efficiently.
The involvement of leading Nigerian banks demonstrates confidence in the power sector as a viable investment destination, while the smooth regulatory disclosures reinforce the credibility of the Nigerian Exchange as a platform for major corporate actions.
Economists say the transaction sends a strong signal to both local and international investors that Nigeria’s power sector is transitioning from survival mode to long-term value creation.
Moreover, the deal aligns with broader national objectives of energy security, industrial growth and economic diversification. Reliable electricity remains central to productivity, job creation and competitiveness, making investments in generation assets strategically important.
New Chapter for Geregu Power
As Geregu Power enters this new phase under MA’AM Energy’s control and Senator Abdulaziz Yari’s board leadership, expectations are high—but so are the opportunities.
The company stands at the intersection of capital market confidence, sectoral reform and indigenous enterprise. If effectively managed, analysts believe Geregu could not only consolidate its position as one of Nigeria’s most valuable listed companies but also play a defining role in the country’s energy transition.
In many respects, the deal symbolises the maturation of Nigeria’s private sector—where ownership changes are driven not by distress but by strategy, succession and long-term value creation.
For investors, policymakers and the broader economy, the Geregu Power transaction may well be remembered as one of the landmark deals that shaped Nigeria’s economic narrative in 2025.
