Geregu Power, owned by billionaire Femi Otedola, has reported a remarkable financial performance, generating N112.5 billion in revenue for the nine-month period ending September 30, 2024. This represents a staggering 102% increase from N55.7 billion during the same period in 2023. The company's pre-tax profits also saw a significant rise, doubling to N36.2 billion, which is a 107% increase from N17.4 billion in the previous year. Profit after tax surged to N24.1 billion, up from just N4.1 billion, marking an impressive 111.9% growth. Operating costs increased to N37.1 billion, while gross profit climbed to N54.6 billion from N13.1 billion. Total assets have grown to N221 billion, reflecting the company's robust financial health and expansion plans.
Geregu Power contributes approximately 10% to Nigeria's electricity supply and is actively working to increase its capacity to 1,200 MW in collaboration with Siemens Energy AG. This expansion is crucial as Nigeria continues to face significant challenges in its power sector, including a lack of reliable electricity supply and ongoing infrastructural issues. The financial success of Geregu Power comes at a time when the broader energy sector is under scrutiny, with calls for reforms to improve efficiency and investment in renewable energy sources.
In addition to the company's growth, Femi Otedola's wealth has increased by $300 million in 2024, underscoring the lucrative nature of investments in Nigeria's energy market. This financial upturn for Geregu Power highlights the potential for growth within the sector, even amidst the challenges faced by the national grid and the need for comprehensive reforms in Nigeria's power infrastructure. As the country seeks to stabilize and enhance its energy supply, the success of companies like Geregu Power may play a pivotal role in shaping the future of Nigeria's energy landscape.