The Fund for Export Development in Africa (FEDA) has announced that it has received internal approvals to acquire a strategic minority stake in Geregu Power Plc, subject to satisfactory diligence and documentation.
FEDA is the development impact investment platform of African Export-Import Bank (Afreximbank) with the mandate of providing capital towards advancing intra-African trade, export development and industrialization in Africa.
In a statement, FEDA said as part of its intervention efforts in the Africa’s energy sector, it 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.
FEDA said it 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.
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.”