Femi Otedola, the billionaire businessman and chairman of First HoldCo, said on Tuesday he will reinvest the money from selling his stake in Geregu Power Plc into the Dangote Refinery.
Otedola has been a key investor in Geregu Power, one of Nigeria's largest power generation companies. The sale of his holding will unlock significant capital, which he now plans to channel into Africa's largest refinery, located in Lagos.
The move signals confidence in the Dangote Refinery's prospects even as the facility continues ramping up production following its official start in January this year. The refinery, a project of billionaire Aliko Dangote, has the capacity to process 650,000 barrels of crude oil daily once fully operational.
Otedola's decision reflects a strategic shift in his investment portfolio, away from the power sector and toward downstream oil and gas. The Geregu stake sale represents a significant liquidity event for the businessman, who has diversified interests across finance, oil and gas, and other sectors.
The Dangote Refinery has already begun supplying petrol to the domestic market, easing the pressure on Nigeria's fuel supply chains. Industry analysts expect the refinery will continue to play a crucial role in stabilizing Nigeria's fuel prices and reducing import dependency.
Otedola did not disclose the exact value of his Geregu stake or the timeline for the investment into the refinery. First HoldCo, his investment vehicle, holds stakes across multiple sectors of the Nigerian economy.
The reinvestment move comes as investors watch the Dangote Refinery's operational performance closely. The facility's success could influence future investment decisions in Nigeria's downstream petroleum sector. Otedola's commitment of fresh capital underscores the confidence major business leaders place in the project's commercial viability and long-term returns.
