Geregu Power Restates Commitment to Nigeria’s Power Sector, Highlights $550m Investment to Date

Kayode Tokede

The management of Geregu Power Plc has restated its commitment to Nigeria’s power sector, stating that the first listed power generating company on the Nigerian Exchange Limited (NGX) was determined to support President Bola Tinubu’s power sector reforms.

In showing commitment to Nigeria power sector, the company took a significant step to align with new standards, amid attainment of ISO 9001 and 14001 certifications from the Standard Organisation of Nigeria (SON).

Speaking to journalists at 12th Annual General Meeting (AGM) last week Friday, Independent Non-Executive Director, of the power generating, Doron Grupper stated that the company has invested $550 million in plant transformation.

He said, “From the beginning, we invested 100 million Euro to bring the capacity to 435 MW after the purchasing of the plant.

“Right now, we have invested another 100 million Euro to bring us to 200 Million Euro and including the purchasing altogether, we have invested 430 Million Euro.

“Now, we are planning to invest much more because we hope to increase the capacity of the power station to 1300 MW once the issue with the federal government is resolved.”

He noted that the present administration was doing what was necessary to revive the power sector, stressing that the management of Geregu Power was watching at the federal government’s direction before taking necessary actions.

At the AGM, the shareholders approved the board of directors N20 billion dividend payout for 2023 financial year, re-election of two directors retiring by rotation and authorised the directors to fix the members of the auditors, among other resolutions.

Speaking to shareholders, Chairman, Geregu Power, Mr. Femi Otedola, stated that the N20 billion dividend payout was a testament of the company’s strong financial position and dedication to delivering shareholders value.

“This dividend declaration is not just a distribution of profits; it is a signal of our confidence in the company‘s future and our commitment to sharing our success with those who have invested in us,” he said.

He noted that 2023 was a year of solid financial performance for the company, underpinned by strong commercial momentum and strategic operational efficiencies.

“Our financial results reflect not only our resilience in the face of a challenging economic environment but also our commitment to continues growth and value creation.

“We experienced remarkable growth in our financial metrics, a testament to our robust business model and the effectiveness of our strategic initiatives. Our revenue saw a significant increase of 58 per cent, reaching N82.9 billion.

“This growth was driven by a combination of factors, including increased foreign exchange rates in the tariff components, energy rate & capacity charges and operational efficiencies,” Otedola stated.

On outlook for 2024, he said the company remains cautiously optimistic despite the challenges faced in the previous year.

“In 2024, Geregu Power aims to align our business operations with the global trend toward affordable, clean and efficient energy systems.

“This involves incorporating renewable energy sources into our power generation portfolio, a move to that not only aligns with our sustainability goals but also positions us to capitalise on emerging market opportunities.

“Our commitment to innovation and sustainability, along with our strategic initiatives, positions us well to navigate the challenges and seize the opportunities that lie ahead,” he said.

On his part, the Chief Executive Officer, Geregu Power, Mr. Akin Akinfemiwa, stated that the company’s 2023 accomplishment underscored the management to operational excellence and financial prudence, positioning the company as a key player within the Nigerian Electricity Supply Industry and West African Power market.

He expressed that the company was looking forward to a brighter future as the management doubled down on operations and embarked on a journey to reposition itself beyond a power generation company to a total energy solutions provider.

“Our short-medium growth objectives are very clear; creating a sustainable power hub in the Ajaokuta axis with a combined capacity of circa 1300MW through aggressive acquisitions and deployment of technology to ramp up capacity with reduced volumes of natural gas as feedstock,” Akinfemiwa explained on the company building a more resilient future.

According to him, with that the new government’s policies, including the Electricity Act of 2023 is expected to foster a more viable Nigerian Electricity Supply Industry offers vista of opportunities across the entire value chain.

He added, that, “This Act enables us to leverage our competences and capabilities to the transmission and distribution sub-sectors and promotes our drive towards our vision of becoming a total energy solutions provider.  “As you may be aware, we have started the process of engaging states in key economic areas for this purpose.”

Speaking earlier, the National Coordinator, Progressive Shareholders Association (PSAN), Mr. Boniface Okezie, commended the N20 billion dividend payout to shareholders, stressing Geregu Power as the first listed power generating company to list on the Nigerian Exchange Limited (NGX) has attracted another power generating company to list on the bourse.

He noted that the management has shareholders support, commending the staff for the outstanding 2023 financial year results.