In an apparent move to weather the storms of power deregulation and its challenges in Nigeria as well as play a major role in stable electricity, a genco, Geregu Power, in October 2022, got listed on the NGX, paving the way for other gencos plagued by funding-related issues to do the same.
In the said listing, a total of 2.5 billion ordinary shares of Geregu were listed at N100 per share, under the utility sector and electric power generation sub-sector of NGX, with the trading symbol, Geregu.
If everything goes well as planned, this move will undoubtedly see Geregu overcoming its fund-related challenges to rise to the occasion in meeting its power supply obligation to Nigerians.
Given this development, Geregu is the first GenCo to be listed on the NGX Main Board, a listing segment for well-established companies.
Based on Geregu's initiative, the question of other gencos following suit cannot be avoided.
Notably, among the latest buyers of Geregu Power shares is Afreximbank. Afreximbank is reported to have bought five per cent of shares into Geregu Power.
The Fund for Export Development in Africa (FEDA), an arm of the Africa Export and Import Bank, has purchased five per cent of the shares of Geregu Power Plc.
In a notice on the Nigerian Exchange Group signed by Company Secretary, Akinleye Olagbende, the power company said the purchase of the shares was concluded on Tuesday.
Part of the statement reads, “The purchase of the shares was concluded today the 21st of February 2023 with the purchase agreed on the 21st of December 2022.
With this purchase, FEDA currently holds five per cent of Geregu Power Pic Shares.”
Geregu shares closed on Tuesday at N224 per share. 125,010,596 volume of its shares worth N12.502bn were traded in 19 exchanges.
NGX had said, “A Main Board listing is a sign of commitment to strong corporate governance, excellence, professionalism, efficiency in service delivery, and providing increased returns to shareholders.
“It is our expectation that the Geregu Power listing will encourage other power generation and distribution companies to list their shares on the Exchange, thereby opening the sector up to cheaper, long-term capital that will boost infrastructural development and value creation.”
With this commendable milestone by Geregu Power, other gencos ought to tow a similar path.
The overriding reason for the government's embrace of power deregulation is to guarantee nothing short of quality, stable electricity.
Any nation without quality electricity is living in the shadows.
Presently, Nigeria is far from reaping the benefits of power deregulation and this is affecting every sphere of the economy, with some companies folding up and relocating to countries like Ghana.
This is too unbefitting for a so-called giant of Africa!
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