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In the face of a recent devaluation of the naira, adversely affecting Nigeria’s wealthiest individuals, one notable exception stands out – billionaire Femi Otedola, whose fortune has risen by $300 million since the start of the year. This surge solidifies his status as one of Nigeria’s richest individuals and a leading business tycoon across Africa.
According to data retrieved from Forbes, a leading U.S. business magazine tracking the fortunes of the world’s ultra-high-net-worth individuals, Otedola, presently ranked as Nigeria’s fourth-richest individual, has witnessed a notable increase in his net worth from $1.1 billion on Jan. 1 to $1.4 billion at the time of this report. Otedola, who is cash-rich, reputedly has the largest dollar reserves of all the Nigerian billionaires on the Forbes list.
The upswing in Otedola’s net worth is attributed to the remarkable performance of his 78.64-percent stake in Geregu Power Plc, a rapidly expanding power-generating company. The recent bullish sentiment on the Nigerian Exchange, contributing to the surge in the market valuation of leading companies, has particularly benefited Otedola’s holdings.
Femi Otedola’s Geregu Power stake surges to $1.1 billion despite naira devaluation
Otedola, recently appointed as chairman of First Bank of Nigeria Holdings Plc, is solidifying his financial influence in Nigeria. His latest move involves acquiring a substantial stake in Dangote Cement Plc, the flagship company of Africa’s wealthiest individual, Aliko Dangote.
Despite the recent devaluation of the naira, impacting the real value of naira-denominated assets, the market value of Otedola’s stake in Geregu Power has experienced a staggering 125.8 percent increase, soaring from $880 million at the start of the year to $1.1 billion at the time of this report.
This surge is closely tied to the substantial increase in the share price of Geregu Power on the Nigerian Exchange, rising by 125.8 percent in 2024 alone, from N399 to N901. This surge has propelled the group’s market capitalization beyond the N2-trillion mark.
Geregu Power’s 2023 revenue soars 74.1 percent: Energy sales and capacity charges propel growth
Investors have responded enthusiastically to Geregu Power’s outstanding financial performance in 2023. The company demonstrated exceptional resilience throughout the fiscal year, achieving a double-digit surge in revenue, surpassing the $90-million mark.
According to figures presented in its annual report, Geregu Power’s revenue witnessed a remarkable 74.1-percent increase, leaping from N47.62 billion ($53.3 million) in 2022 to N82.91 billion ($92.8 million) by the end of 2023.
This surge was primarily driven by increased energy sales and capacity charges, reaching N51.8 billion ($58 million) and N31.1 billion ($34.81 million), respectively.
