MA’AM Power Ltd and minority shareholders of Geregu Energy Plc are set to obtain a good portion of the N500 billion energy sector debt owed by the Federal Authorities.
That is based on an evaluation of energy sector arrears and debt reimbursement devices reviewed by Nairametrics.
Geregu Energy, like different electrical energy producing corporations (Gencos), is owed a part of a broader N4 trillion debt, with the Federal Authorities now issuing bonds to clear the backlog.
In line with the {financial} assertion of Geregu Energy as of September 2025, the corporate reported a receivable of N170 billion, web of impairments.
Nevertheless, Nairametrics estimates that the gross determine, earlier than impairment, could possibly be nearer to N500 billion.
As of March 2025, complete excellent obligations to the corporate stood close to N400 billion, with sources suggesting this rose to almost N500 billion by December 2025.
The Federal Authorities, via the Nigerian Bulk Electrical energy Buying and selling (NBET) firm, has commenced a bond programme to clear these arrears.
A time period sheet reviewed by Nairametrics reveals that NBET Finance Firm Plc, backed by a sovereign assure, will subject bonds beneath a N4 trillion programme.
The primary section includes elevating N1.23 trillion between November and December 2025 in two tranches:
The bonds present Gencos with liquidity with out an instantaneous money burden on the federal government, with scope to broaden additional beneath Section 1.
MA’AM Power, which acquired a 77% controlling stake in Geregu Energy in December 2025, stands to be the first beneficiary of any debt reimbursement by the Federal Authorities.
If executed via the proposed bond programme, the reimbursement would materially enhance earnings visibility and scale back balance-sheet uncertainty, strengthening confidence in Geregu Energy’s medium-term money circulate profile and dividend outlook.
As soon as the fee is effected, beforehand impaired receivables could possibly be reversed, leading to a cloth uplift to reported earnings and a strengthening of the corporate’s steadiness sheet. This could improve Geregu Energy’s capability to declare dividends and enhance total shareholder worth.
Geregu Energy’s share worth closed at ₦1,141 per share and has remained largely secure for the reason that begin of 2026, reflecting the tightly held construction of the inventory. Buying and selling exercise has been muted, with MA’AM Power’s 77% possession considerably constraining free float on the Nigerian Trade.
For MA’AM Power Ltd, this growth represents an accelerated pathway to worth restoration on its latest acquisition.
Billionaire investor Femi Otedola divested his 77% stake in Geregu Energy Plc in December 2025 in a $750 million deal, considered one of Nigeria’s largest non-public energy sector transactions.
The sale concerned transferring his 95% stake in Amperion Energy Distribution Firm Ltd (Geregu’s father or mother firm) to MA’AM Power Ltd.
The acquisition was financed by a consortium of Nigerian banks led by Zenith Bank, with Blackbirch Capital serving because the {financial} adviser.
