Nigeria: Fund for Export Development in Africa backs power company
The Fund for Export Development in Africa (FEDA) 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 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. 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.
Femi Otedola, chairman of the board of directors of 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.”
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.”