Femi Otedola Increases Wealth by $300m in 2024 Despite Naira Depreciation
- Femi Otedola saw his wealth increase by $300 million in 2024 despite the depreciation of the naira
- According to a report, the growth in his wealth could be attributed to the success of his power-generating company
- Otedola's stake in Geregu Power has seen a significant gain in market value, rising from $880 million to $1.1 billion
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
Billionaire Femi Otedola has seen his wealth increase by $300 million since the year began. This is despite the recent naira depreciation which negatively impacts the wealth of many in Nigeria.
Source: UGC
This increase confirms his position as one of the wealthiest people in Nigeria and a top African business magnate.
Otedola is currently the fourth richest person in Nigeria according to Forbes, a U.S. business magazine that tracks the fortunes of the world's ultra-high net worth individuals.
Otedola’s worth increases
Otedola's net worth increased significantly from $1.1 billion on January 1 to $1.4 billion at the time of this report, according to Billionaire.africa.
The impressive success of Otedola's 78.64% interest in his power-generating company, Geregu Power Plc, is credited with increased net worth.
Otedola's assets have significantly benefited from the recent bullish feeling on the Nigerian Exchange, which has led to a rise in the market valuation of prominent corporations.
With his recent appointment to First Bank of Nigeria Holdings Plc chairmanship, Otedola is extending his financial clout in Nigeria.
He recently invested significantly in Dangote Cement Plc, the main business of Aliko Dangote, the richest man in Africa.
Over 100% increase in Geregu’s share
The market value of Otedola's investment in Geregu Power has increased dramatically by 125.8%, from $880 million at the beginning of the year to $1.1 billion at the time of this report, notwithstanding the recent devaluation of the naira, which has affected the actual value of naira-denominated assets.
The significant rise in Geregu Power's share price on the Nigerian Exchange, which increased from N399 to N901 in 2024 alone, is intimately linked to this spike. The group's market valuation has risen to about N2 trillion due to this boom.
The exceptional financial performance of Geregu Power in 2023 has elicited a warm reception from investors.
The company showed remarkable tenacity throughout the fiscal year and exceeded the $90-million sales threshold with a double-digit revenue growth.
Geregu Power's income increased by a stunning 74.1%, from N47.62 billion ($53.3 million) in 2022 to N82.91 billion ($92.8 million) by the end of 2023, as per the numbers published in its annual report.
Increased energy sales and capacity charges, which totalled N51.8 billion ($58 million) and N31.1 billion ($34.81 million), respectively, were the leading causes of this increase.
Femi Otedola sells N399m worth of Geregu shares
Legit.ng reported that Femi Otedola, the chairman of Geregu Power Plc, has cashed out over N399 million from his investment in the company.
He made the money after selling 1 million units of his Geregu shares held through Amperion Power Distribution Company Limited.
The transaction details were disclosed in a corporate document submitted to the Nigerian Exchange Limited (NGX) on Wednesday, November 22, 2023.
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Source: Legit.ng
