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Nigeria’s Femi Otedola Set to Earn $17.6 Million from Geregu Power Deal in March

Femi Otedola, a Nigerian billionaire businessman and philanthropist, is expected to collect a final dividend of more than $17 million from his huge 78.64 percent interest in the rapidly developing power generation company.

The dividend, which is set to be paid out on March 28, secures Femi Otedola’s position as one of Nigeria’s top dividend earners and adds another financial milestone to his already outstanding portfolio.

Forbes lists Otedola as one of Africa’s billionaires, with a fortune of $1.1 billion. His majority ownership in Geregu Power, which totals 1,965,980,568 ordinary shares valued at approximately $1 billion, has been critical to his recent financial success.

Geregu Power’s annual report highlights the company’s financial performance, which led to the dividend payout. The company’s sales increased 74.1 percent from N47.62 billion ($53.3 million) in 2022 to N82.91 billion ($92.8 million) by the end of 2023. This was powered by increasing energy sales and capacity charges, which totaled N51.8 billion ($58 million) and N31.1 billion ($34.81 million), respectively.

Geregu Power’s operational profit increased by 110 percent from N14.82 billion ($16.6 million) in 2022 to N31.14 billion ($34.85 million) in the fiscal year 2023, owing to this success and the company’s cost-effective initiatives.

Earnings per share for the group’s 2.5 billion outstanding shares increased significantly to N6.42 ($0.00718), up from N4.07 ($0.00455) the year before. The company’s board recommended a dividend of N8 ($0.174) per share to shareholders, increasing the return on investment for stakeholders.

Otedola’s Growing Influence: From Investor to Chairman in Nigeria’s Financial Sector

In addition to Geregu Power, Otedola’s stakes in First Bank of Nigeria Holdings Plc (FBN Holdings) and recent shares in Dangote Cement Plc position him for big dividends this year.

His astute investments highlight Otedola’s financial acumen and solidify his position as a significant player in Nigeria’s commercial landscape. In January 2024, Odedola was appointed chairman of FBN Holdings, a significant milestone for Nigeria’s banking sector. This follows his appointment as a non-executive director eight months ago.

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