Nigerian billionaire Femi Otedola’s power company rakes in $40-million revenue in Q1 2024

Geregu Power Plc, a prominent player in Nigeria’s power industry, led by Nigerian billionaire Femi Otedola, has marked an extraordinary financial achievement, reporting revenue of N50.43 billion ($40.38 million) in the first quarter of 2024.

The remarkable feat follows the company’s strong financial performance in 2023, where revenue surpassed the $90 million mark, solidifying its position as a leading player in the nation’s power sector.

Revenue skyrockets under Otedola’s leadership

Under the visionary leadership of Femi Otedola, who also chairs FBN Holdings Plc, a prominent financial services group in Nigeria, Geregu Power has witnessed unprecedented growth and expansion. In the first quarter of 2024 alone, the company recorded a remarkable revenue increase of 254.38 percent, compared to the corresponding period in 2023, reflecting a surge from N14.23 billion ($11.4 million) to N50.43 billion ($40.38 million).

During the review period, revenue generated from total energy sold soared from N9.08 billion ($7.2 million) in the first quarter of 2023 to N31 billion ($24.82 million) in the first quarter of 2024, while revenue from capacity charge surged from N5.15 billion ($4.13 million) to N19.43 billion ($15.6 million), demonstrating robust performance across its revenue streams.

Geregu Power’s operational prowess was further underscored by a substantial increase in operating profit, which escalated from N5.79 billion ($4.65 million) to N21.76 billion ($17.47 million), alongside a surge in profit from N3.55 billion ($2.85 million) to N14.46 billion ($11.6 million) during the same period, almost matching the profit generated throughout 2023.

Geregu Power: Scaling up operations

With Femi Otedola at the helm, Geregu Power has cemented its dominance in Nigeria’s energy generation landscape, boasting ownership of three natural gas-fired power plants with a collective capacity of 435 megawatts, significantly contributing to the nation’s energy generation capacity.

Buoyed by its impressive financial performance in recent years, Geregu Power has set ambitious expansion targets under Otedola’s leadership, aiming to elevate its total capacity from 435 megawatts to 1,300 megawatts within the next two years.

This strategic initiative reflects the company’s unwavering commitment to addressing Nigeria’s burgeoning energy demands while striving to enhance its earnings and revenue through sustained growth in the dynamic power sector.