FEDA, a subsidiary of Afreximbank, announced that it had received internal approval to acquire a strategic minority stake in Geregu Power Plc.
According to a press release obtained by Naijaonpoint, it received approval after completing satisfactory diligence and documentation.
FEDA is the African Export-Import Bank’s (Afreximbank) development impact investment platform, with the mission of providing capital to advance intra-African trade, export development, and industrialization in Africa.
Feda’s investment in Geregu Power aims to support the company as a minority investor and to collaborate with the current owners and management team to drive the company’s growth over the next few years.
Geregu Power, one of Nigeria’s leading power generation companies with a capacity of more than 430 megawatts, is a critical component in realizing Nigeria’s power sector roadmap. Earlier this year, the company was listed on the Nigerian Exchange.
What they are saying
Mr Femi Otedola CON, Chairman, Board of Directors, Geregu Power Plc stated that: “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 (NESI).”
He added, “in a period of contracting economic activity globally, to attract this investment from FEDA is testament to our long-term strategic plans and will accelerate our expansion to the wider West African Market.”
Prof. Benedict Oramah, President and Chairman of Afreximbank and Chairman of FEDA platform entities, said:
We are very pleased with this proposed investment, which marks a critical step towards supporting Nigeria’s power sector, and more broadly, towards advancing Africa’s industrialization and energy security. Without adequate power, Africa cannot achieve global export competitiveness. Afreximbank and its subsidiaries, including FEDA, are focused on creating a level playing field so that African products can compete at near equal footing with those originating from other markets. We hope that this approved investment will take us closer towards that goal
Marlène Ngoyi, CEO of FEDA, commented:
The proposed investment in Geregu Power demonstrates FEDA’s ability to intervene in opportunities and sectors that are critical towards driving the structural transformation of trade on the continent. Geregu Power is a key player in Nigeria’s power sector. FEDA is pleased to partner with the Company in its next phase of growth.
