Nigerian billionaire Femi Otedola makes $171 million in 72 hours

Nigerian billionaire Femi Otedola has experienced a remarkable increase in his wealth in recent days, as the market value of his stake in Geregu Power Plc, a major player in Nigeria’s power industry, surged by more than $170 million in just three days.

Otedola, one of Nigeria’s wealthiest individuals, has seen the market value of his stake in Geregu Power surge by N131.39 billion ($171.8 million) in the past three days, driven by renewed investors’ interest in the power-generating company. This surge follows Geregu Power’s impressive financial results in the first nine months of its 2023 fiscal year.

Femi Otedola’s stake in Geregu Power is now worth $1.15 billion

Geregu Power, which operates three natural gas-fired power plants with a combined capacity of 435 megawatts, has solidified its position as a major player in Nigeria’s energy generation sector, representing 10 percent of the country’s total power generation capacity.

According to data tracked by Billionaires.Africa and figures contained in Geregu Power’s recently published audited financial statement, Otedola, through his company, Amperion Power Distribution Company, holds a commanding 95.56-percent stake in Geregu Power, equivalent to a total of 2,388,921,063 shares.

Investors react positively to Geregu Power’s impressive financial performance

In recent days, the market value of Otedola’s 95.56-percent stake in Geregu Power has surged by N131.39 billion ($171.8 million), leaping from N752.51 billion ($983.95 million) on Oct. 23 to N883.9 billion ($1.155 billion) at the time of this report’s drafting, as shares in the leading power company surged by 17.4 percent, rising from N315 ($0.412) to N370 ($0.484).

The recent 17.4-percent surge in Geregu Power’s share price, driving Otedola’s stake to increase by $171.8 million in just three days, is attributed to investors’ bullish response to the company’s robust financial performance in the first nine months of the 2023 fiscal year.

Geregu Power’s 43-percent revenue growth leads to a 52% increase in gross profit

Geregu Power’s unaudited interim financial statement, released on Wed., Oct. 18, reveals substantial growth in both revenue and earnings. The group reported a remarkable 43-percent surge in revenue, climbing from N39 billion ($50.8 million) in the corresponding period in 9M 2022 to a robust N55.75 billion ($72.66 million) in 9M 2023.

Under Otedola’s leadership, the company has excelled across all segments, with revenue generated from energy sales increasing from N24.78 billion ($32.3 million) to N34.8 billion ($45.3 million). Simultaneously, capacity charges surged from N14.23 billion ($18.54 million) to N20.95 billion ($27.23 million) during the period under review.

This impressive revenue growth translated into a substantial 52-percent increase in gross profit, reaching N28.89 billion ($37.5 million) at the end of the first nine months of 2023, compared to N18.95 billion ($24.6 million) in 9M 2022.

The surge in Geregu Power’s share price and Femi Otedola’s growing wealth underscore the company’s resilience and its capacity to contribute significantly to Nigeria’s power generation sector, further solidifying Otedola’s status as one of the continent’s most affluent businessmen.