Meet New Geregu Power Investor as FG Says Investors Must Have N50 Billion Asset Base
- A Nigerian electricity-generating company, Geregu Power, has said it already in talks with a new investor
- The company told the Nigerian Exchange Limited that Africa Export and Import had shown interest in the company
- Similarly, Zungeru Hydropower has said intending investors must have about N50 billion asset base with other conditions
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Geregu Power Plc, an electricity-generating company in Nigeria, is in talks with the Africa Export and Import Bank to purchase shares in the power company.
Geregu Power said in a statement to the Nigerian Exchange Limited that talks are ongoing.
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Electricity company face problems
Electricity-generating companies in Nigeria have faced funding challenges and revenue problems since the federal government privatised the power sector nine years ago.
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According to the World Bank, 40 per cent of Nigeria’s over 200 million population does not have access to electricity.
BusinessDay reports that Geregu has 435 megawatts of installed capacity and generates just 10 per cent of that capacity.
Geregu has 435 megawatts installed capacity and generates about 10% of the country’s power, according to its website.
The power company is the only electricity company is listed on the Stock Exchange, which was admitted some months ago.
FG lists conditions for the Zungeru power plant
Meanwhile, the transaction advisory committee for the Zungeru Hydropower project has stated that intending bidders must have a minimum asset base of about N50 billion or its equivalent.
The Bureau of Public Enterprises is a sign of Nigeria’s commitment to shoring up the private sector’s participation in the electricity industry to obtain much-needed funding.
In a roadshow, the team leader for the transaction adviser, Tomiwa Aregbesola, stated that the project is expected to boost economic activities in Nigeria and create over one million jobs.
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Aregbesola listed other requirements, including experience in handling similar projects and evidence of hydropower plant management of at least 500MW, a critical management team with the required experience and 15 years in the industry.
Zungeru Hydropower has 700MW installed capacity.
Femi Otedola’s Geregu Power loses N27.250 billion on the stock market, Few days after listing
Legit.ng reported that Geregu Power, belonging to billionaire businessman Femi Otedola lost about N27.250 billion on the stock market on Friday, 14 October 2022. The company saw investors expressing negative sentiments the first time it was listed on the floor of the Nigerian exchange.
The loss of N27.250 billion represented about 9.02 per cent as investors exercise caution ahead of the 2023 elections and rate hike.
According to reports, the Nigerian Exchange Limited (NGX) announced the listing by introducing the power company on the Main Board of the Exchange on Wednesday, October 5, 2022.
Source: Legit.ng
