Nigerian billionaire businessman and philanthropist Femi Otedola is poised to receive a final dividend exceeding $17 million from his substantial 78.64-percent stake in the fast-growing power-generating company.
In a testament to the robust fiscal performance of Geregu Power Plc, the dividend, scheduled for disbursement on March 28, solidifies Femi Otedola’s position among Nigeria’s top dividend earners and adds another financial milestone to his already impressive portfolio.
According to Forbes, Otedola’s fortune, amounting to $1.1 billion, places him among Africa’s billionaires. His majority stake in Geregu Power, comprising 1,965,980,568 ordinary shares valued at nearly $1 billion, has played a pivotal role in his financial success in recent times.
Geregu Power’s stellar performance propels massive 110-percent surge in operating profit
The dividend payout stems from Geregu Power’s financial performance, as highlighted in its annual report. The company’s revenue witnessed a 74.1-percent surge, catapulting from N47.62 billion ($53.3 million) in 2022 to N82.91 billion ($92.8 million) by the end of 2023. This was fueled by increased energy sales and capacity charges, reaching N51.8 billion ($58 million) and N31.1 billion ($34.81 million), respectively.
Buoyed by this performance and the company’s cost-effective strategies, Geregu Power recorded a staggering 110-percent surge in operating profit, from N14.82 billion ($16.6 million) in 2022 to N31.14 billion ($34.85 million) in the 2023 fiscal year.
Earnings per share for the group’s 2.5 billion outstanding shares rose to N6.42 ($0.00718), a substantial increase from the previous year’s N4.07 ($0.00455). As a result, the company’s board recommended a dividend payment of N8 ($0.174) per share to shareholders, further enhancing the return on investment for stakeholders.
Otedola’s growing influence: From investor to chairman in Nigeria’s financial sector
In addition to his holdings in Geregu Power, Otedola’s investments in First Bank of Nigeria Holdings Plc (FBN Holdings) and recent shares in Dangote Cement Plc set him up for significant dividends later this year.
His savvy investments showcase Otedola’s financial prowess and bolster his status as a key player in Nigeria’s business scene. In January 2024, Otedola was named chairman of FBN Holdings, marking a milestone in Nigeria’s financial sector. This comes after his appointment as a non-executive director eight months earlier.
The dollar values in this article were calculated based on the prevailing naira exchange rates as of Jan. 30, when Geregu Power Plc released its annual report.
