The African Export-Import Bank’s (Afreximbank) Fund for Export Development in Africa (FEDA) has announced that it had received internal approvals to acquire a strategic minority stake in Geregu Power Plc.
Afreximbank disclosed this in a statement obtained by LEADERSHIP yesterday.
FEDA, with headquarters in Kigali, Rwanda, is the development impact investment platform of Afreximbank with the mandate of providing capital towards advancing intra-African trade, export development and industrialisation in Africa.
As part of its intervention efforts in Africa’s energy sector, FEDA has made a strategic decision to support leading energy platforms across Africa, including the renewables and transition fuels sectors.
Geregu Power, one of Nigeria’s leading power generation companies with a capacity in excess of 430 megawatts, is a highly strategic asset to realising Nigeria’s power sector roadmap.
According to the statement, FEDA aims to support the business as a minority investor and work with the current owners and management team to drive the expansion of the business over the next few years.
Commenting on the deal, the chairman, Board of Directors, Geregu Power Plc, Femi Otedola said: “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).
“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.”
On his part, the president and chairman of Afreximbank and chairman of FEDA platform entities, Prof. Benedict Oramah said the bank was pleased with this proposed investment, which marks a critical step towards supporting Nigeria’s power sector and advancing Africa’s industrialisation 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,” he said.
The chief executive officer of FEDA, Marlène Ngoyi said the proposed investment in Geregu Power demonstrated FEDA’s ability to intervene in opportunities and sectors that are critical towards driving the structural transformation of trade on the continent, adding that Geregu Power is a key player in Nigeria’s power sector and that FEDA is pleased to partner with the company in its next phase of growth.
Geregu Power Plc is a 435 MW thermal power plant located in Ajaokuta, Kogi State, and is listed on the Nigerian Stock Exchange. The plant is majority-owned and operated by Amperion Power Distribution Company Limited. The power plant consists of three simple cycle natural gas fired SIEMENS V94.2 STG5-2000E gas turbine generator units with a 435MW installed capacity. The Turbine units are GT11, GT12, and GT13 and each is designed to produce 145 MW at 15.75KV, stepped up to 330kV via a 173.6MVA power transformer and now generates on average 10 percent of Nigeria’s power.
