MA’AM Energy Ltd and Geregu Power’s minority shareholders will receive ₦500 billion.
This debt forms part of a larger ₦4 trillion that the Federal Government owes.
MA’AM Energy Benefits
Geregu Power reported ₦170 billion in receivables in September 2025 after accounting for impairments.
However, analysts estimate that the gross figure could reach ₦500 billion before adjustments.
By December 2025, industry sources suggest the company’s outstanding obligations climbed to nearly ₦500 billion.
Government Bond Programme
To tackle arrears, the Federal Government, through NBET, launched a bond programme.
NBET Finance Company Plc will issue bonds backed by a sovereign guarantee under a ₦4 trillion scheme.
In the first phase, the government aims to raise ₦1.23 trillion between November and December 2025.
Tranche A will offer ₦300 billion to investors via book-building for cash payments.
Tranche B will allocate ₦290 billion directly to Gencos as tradable bonds or loan collateral.
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These bonds provide liquidity for Gencos without creating an immediate cash burden on the government.
Strategic Acquisition
MA’AM Energy acquired a 77% stake in Geregu Power in December 2025, becoming the main beneficiary.
Any government repayment will strengthen MA’AM Energy’s earnings visibility and balance sheet.
Geregu Power’s share price remains stable at ₦1,141, largely due to MA’AM Energy’s tight ownership.
Trading activity stays muted because the free float on the stock remains limited.
In December 2025, Femi Otedola sold his 77% Geregu Power stake in a $750 million deal.
He also transferred his 95% stake in Amperion Power Distribution Company, Geregu’s parent, to MA’AM Energy.
Zenith Bank led the acquisition financing, while Blackbirch Capital acted as financial adviser.
The bond repayment provides MA’AM Energy a fast track to recover value from its investment.
Reversing impaired receivables will boost investor confidence in dividends and medium-term cash flows.
Overall, the programme strengthens Geregu Power’s balance sheet and enhances shareholder value.
This deal highlights Nigeria’s growing opportunities in the private power sector for investors.
