Otedola's plan to develop first PPP transmission project in Nigeria, boosts Geregu power stock to all-time high

Oredola Adeola

The investors’ confidence in a recent report of the plan by Femi Otedola’s Geregu Power Plc to develop a power transmission project in partnership with the Lagos state government and Africa Development Bank(AfDB), has led to a renewed buying interest in the company’s stock, which has therefore caused its stock to reach an all-time high of N350 per share, consequently taking the company’s market capitalization to N875 billion.

The power firm achieved this feat on Tuesday based on the date obtained by EnergyDay from the Nigerian Exchange Limited (NGX).

EnergyDay gathered that Otedola’s power firm has since October 2022 when it went public on the main board of the NGX, consistently showed outstanding performances in its quarterly financial performances, meeting the exchange’s strictest corporate governance standards, and other requirements, hence, its attractiveness to investors.

Geregu Power recently announced the plan to develop Nigeria’s first public-private partnership (PPP) power transmission project, with the Lagos State Government and the African Development Bank (AfDB).

This project aims to establish a power transmission infrastructure that will enhance Lagos State’s new subnational electricity market, seen as a significant step towards improving Nigeria’s power infrastructure and ensuring reliable electricity distribution.

The development of the power transmission project Otedola’s Geregu with the takeoff in Lagos State, is seen as a significant milestone for the power firm, which has recently surpassed a market capitalization of $1 billion.

EnergyDay’s check showed that Geregu Power Plc is currently the eighth most valuable stock on the Nigerian Stock Exchange, with market capitalization to N875 billion.

As of Wednesday, July 19, 2023, the technical ratings for NGX’s share of Geregu Power Company was showing STRONG BUY.