AfrElec: FEDA to acquire minority stake in Nigeria’s Geregu Power

The Fund for Export Development in Africa (FEDA), a subsidiary of the African Export-Import Bank (Afreximbank), has received internal approval to acquire a minority stake in Geregu Power Plc, a Nigerian energy company with a capacity of over 430 MW.

The acquisition, which is subject to satisfactory diligence and documentation, is part of FEDA's efforts to support leading energy platforms in Africa, including renewables and transition fuels.

In a statement, FEDA CEO Marlène Ngoyi described the proposed investment in Geregu Power as an opportunity to drive 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.”

Geregu Power Chairman, Femi Otedola, welcomed the interest shown by FEDA as a sign of the company's belief in the future of the Nigerian electricity supply industry. The investment from FEDA, which comes at a time of contracting economic activity globally, is seen as a testament to Geregu Power's long-term strategic plans and will accelerate expansion into the wider West African market, he said.