The Fund for Export Development in Africa (FEDA) of the African Export-Import Bank (Afreximbank) has announced that it has obtained internal clearances to purchase a strategic minority investment in Geregu Power Plc.
In order to realize Nigeria’s power sector roadmap, Geregu Power, one of the country’s top power generation firms with a capacity of more than 430 megawatts, is a very strategic asset. In Nigeria’s electricity industry, Geregu Power is a major player.
Ajaokuta, Kogi State, Nigeria’s 435 MW Geregu Power Plc thermal power plant is listed on the Nigerian Stock Exchange. In order to fill the multibillion dollar funding shortfall (especially in equity), FEDA was established to provide equity, quasi-equity, and long-term equity-like debt capital.
FEDA aims to support the business as a minority investor and work with the current owners and management team to drive the expansion of the business over the next few years.