Otedola calls for more private sector investments to solve power problems

Lagos businessman and Chairman, Geregu Power Plc, Mr. Femi Otedola, yesterday called on the incoming government to confront the challenges in the power sector by engaging experienced private sector investors to resolve the problems militating against the optimization of the sector.

Speaking at a closing gong ceremony to commemorate the first annual general meeting of Geregu Power at the Nigerian Exchange (NGX), Otedola said the incoming government should make the power sector one of its top priorities.

According to him, the incoming administration should do all it could to tackle power sector challenges by prioritizing resolution of the key issues facing the sector.

He pointed out that while the power sector is faced with a lot of problems, these problems are surmountable by engaging the right approach and investors.

Otedola said the major problem facing the sector now is transmission, noting that a well-organised power sector will lead to cheaper power supply, which will have a lot of positive impact on the manufacturing sector and the entire economy as a whole.

'I believe we are now in the stage that the power sector will get a lot of attention. We have new plants. Our problem is transmission, there is need to look in this direction. We are in a stage where the new government can come and tackle the challenges in the power sector and hopefully there will be positive results. So, what is needed is to seek investors who have knowledge of the private sector to work on these challenges,' Otedola said.

Open Letter

He outlined the trailblazing efforts of Geregu Power as the first power company to list its shares on the Exchange, the first to embark on an aggressive 300 per cent expansion drive and the first company to release its financial results.

He reiterated the commitment of the company towards delivering improved performance, assuring that all necessary steps are being taking to expand the company's capacity in order to maximise shareholders' wealth.

He expressed delight at the company's first year anniversary as a listed company, adding that for any company to sustain wealth, there is a need to list on the stock exchange.

Chief Executive Officer, Geregu Power Plc, Mr. Akin Akinfemiwa, commended the capital market community for their support in listing the company and trading on the company's shares.

'We have come today to state our unflinching commitment towards upholding the values and ethos of the Exchange. We are doing everything within our means to expand our capacity towards maximizing shareholders' value,'Akinfemiwa said.

Chairman, Nigerian Exchange (NGX), Alhaji Umaru Kwairanga, said Geregu Power had shown good example in adhering to post-listing requirements.

He urged other power companies to come on board and get listed so that they can also benefit from the capital market.

According to him, the stock market has compensated Geregu Power with price appreciation and it has shown that the market is information driven.

Chief Executive Officer, Nigerian Exchange (NGX), Mr. Temi Popoola, described Otedola as a firm believer in the capital market, noting that the Exchange was aware of Geregu Power's strategic ambitions to ensure more value for all stakeholders..

'We are aware of your strategic ambitions and we assure you that the NGX can help you to raise capital. We have seen benefits of that with the public announcement of FEDA that took a five per cent on the floor of the market through those shares. So we hope that you will be using the market now and in any other strategic vehicles and companies that you may have,' Popoola said.

Geregu Power rewarded shareholders with a dividend of N8 per share for the year ended December 31, 2022. Shareholders yesterday approved the dividend at the annual general meeting in Lagos, amidst commendations for the board and management.

Shareholders assured that they would continue to support the company in order to ensure it performs better in the years ahead.