Geregu Power Proposes ₦22.5bn Final Dividend for Shareholders

Geregu Power Plc has proposed a final cash dividend of ₦9 per ordinary share, translating to a total payout of ₦22.5 billion, according to a filing submitted to the Nigerian Exchange (NGX) on Monday.

The dividend is subject to shareholder approval at the company’s upcoming annual general meeting (AGM). If approved, it will mark an increase from the ₦8.50 per share paid in the previous financial year, extending Geregu Power’s record of steady dividend growth since listing on the NGX.

With 2.5 billion shares in issue, the proposed payout highlights the company’s ability to return cash to investors despite persistent challenges in Nigeria’s power market, including liquidity pressures and outstanding receivables owed by market operators.

The NGX filing indicates that the proposed dividend is supported by improved earnings capacity and rising retained profits. For the nine months ended September 2025, the company’s retained earnings rose to ₦55.1 billion, accounting for nearly 98% of shareholders’ equity, a signal of strong profit retention and capital accumulation.

While revenue growth was reported to have moderated during the period, declining 37.38% to ₦43.83 billion from ₦131.47 billion, the company maintained resilient operating profit and cash flows, enabling the board to sustain its dividend policy. The filing also points to a relatively stable cost structure and disciplined capital management as key factors supporting shareholder returns.

At the current market price, the proposed dividend implies a yield of about 0.8%—modest in percentage terms, but notable given Geregu Power’s premium valuation and its position as one of the Nigerian Exchange’s most profitable listed power generation companies.

The dividend announcement comes amid changes in the company’s ownership structure. In 2025, MA’AM Energy Limited acquired majority control of Geregu Power following a major divestment by investor Femi Otedola, in a transaction valued at about $750 million.

Analysts say the new ownership may shape the company’s strategic direction, including expansion priorities and capital allocation decisions.

The report also notes that efforts by the Federal Government to address legacy debts in the electricity market could be a positive catalyst for generation companies. Any improvement in sector liquidity would likely strengthen cash flows and reduce earnings volatility for firms such as Geregu Power.

If shareholders approve the dividend at the AGM, Geregu Power will further reinforce its standing as one of the NGX’s more consistent dividend-paying utility stocks, even as it navigates regulatory, operational, and market-wide headwinds in the power sector.