The African Export-Import Bank’s (Afreximbank) investment platform, the Fund for Export Development in Africa (FEDA), has secured the necessary internal approvals that allow the platform to acquire a minority stake in Nigerian-based power generation company, Geregu Power, as part of efforts to enhance energy security and industrialization in Africa.
Mr Femi Otedola CON, Chairman of the Board of Directors at Geregu Power, stated that the participation of Afreximbank in the operations of the Nigerian Exchange Limited-listed company will not only expand the company’s operations but will enhance and secure the “future of the Nigerian Electricity Supply Industry (NESI),” adding that, “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.”
Geregu Power has a total electricity generation capacity of 450 MW. With the acquisition, FEDA will serve to support the organization as a minority investor, working closely with Geregu’s management team to expand the business in accordance with Nigeria’s wider power sector development plans.
According to Prof. Benedict Oramah, President and Chairman of Afreximbank and Chairman of FEDA Platform Entities, the proposed investment “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.”