Geregu Power Plc, a leading power-generating company led by Nigerian billionaire Femi Otedola, has achieved a significant milestone on the Nigerian Exchange, with its market capitalization surpassing the $1-billion mark and reaching a record high of $1.12 billion after weeks of trading sideways.

As of the time of drafting this report, Geregu Power shares on the local bourse were trading at N350 ($0.45) per share, indicating a 6.06-percent increase from their opening price of N330 ($0.425) earlier in the day. This surge can be attributed to renewed investor interest in the prominent company.

This recent boost in the company’s shares and market capitalization follows reports that Otedola, the chairman of the power-generating company, is partnering with the Lagos State government and African Development Bank Group (AFDB) to develop a power transmission project. The collaboration will be conducted under a Public-Private Partnership (PPP) arrangement as part of a move to establish Nigeria’s first-ever PPP power transmission project.

This development aligns with the Nigeria Electricity Act 2023, which Nigerian President Bola Tinubu recently signed into law. The act grants state governments and private individuals the authority to transmit electricity in areas covered by the national grid, ultimately decentralizing electricity regulation.

The rise in Geregu Power’s market capitalization to its current level of N875 billion ($1.12 billion) cements its position as one of the top ten most valuable companies on the Nigerian Exchange. The significant achievement comes less than ten months after the company’s shares were listed on the local bourse, making it the first electricity-generating company to be listed on the Nigerian Exchange.

During the second quarter of its current fiscal year, Geregu Power, under the leadership of Otedola, recorded a pre-tax profit of N6.9 billion ($8.9 million), marking an improvement from the N5.3 billion ($6.8 million) pre-tax profit reported during the same period in 2022.

The surge in pretax profit can be attributed to the company’s increased revenue during the second quarter of 2023. Revenue escalated significantly from N15.2 billion ($19.6 million) in the corresponding quarter of 2022 to N20.4 billion ($26.4 million).

Geregu Power’s remarkable achievement highlights its continued success and growth trajectory within the Nigerian power sector.

With Otedola at the helm, the company is poised to make further strides in power generation and transmission, fostering sustainable energy development for Nigeria’s future.