Nigerian billionaire Phillip Ihenacho is divesting a majority stake in Azura Power, selling 90% of the energy company to Abu Dhabi-based investment firm ePointZero.
The transaction involves the 752MW power producer, which was founded in 2010 by Ihenacho through his investment vehicle, Amaya Capital.
Under the terms of the agreement, Amaya Capital will retain a 10% minority stake in the company, maintaining a residual interest in the utility’s operations.
The deal marks a significant transition for one of the most substantial private power investments in West Africa. The core asset of the company, the Azura-Edo Independent Power Plant (IPP), is a critical component of Nigeria’s electricity generation capacity.
The facility was developed as a gas-fired plant designed to provide a stable source of electricity to the national grid, reducing the country’s reliance on hydroelectric power and intermittent generation.
Amaya Capital’s decision to sell the majority of its holding follows a long-term investment cycle that began over a decade ago. The development of the Azura-Edo project required complex financing structures and strategic partnerships to navigate the risks associated with the Nigerian power sector.
Impact on Nigeria’s Energy Infrastructure
The Azura-Edo IPP remains one of the largest power plants in the country. It operates under a long-term Power Purchase Agreement (PPA) with the Nigerian Bulk Electricity Trading (NBET) company, which ensures the off-take of generated electricity.
The entry of ePointZero, a firm based in Abu Dhabi, reflects a broader trend of Middle Eastern capital flowing into African energy and infrastructure assets. The United Arab Emirates has increasingly targeted strategic utilities and logistics hubs across the continent to diversify its investment portfolio.
For the Nigerian power sector, the change in ownership suggests continued international confidence in the viability of large-scale independent power projects. The transition of control to a Gulf-based buyer may also open avenues for further technical upgrades or capital injections to improve operational efficiency.
Details from Azura Power indicate that the plant’s capacity is essential for stabilizing the grid, though the sector continues to face challenges related to transmission losses and payment arrears within the value chain.
The transaction also allows Phillip Ihenacho to realize significant value from the asset while retaining a strategic foothold through the 10% minority share. This move aligns with the typical lifecycle of private equity investments, where founders exit once an asset reaches operational maturity.
The sale is expected to proceed through the necessary regulatory approvals and the transfer of ownership documents between Amaya Capital and ePointZero.
Further details regarding the final transaction value have not been publicly disclosed, but the scale of the 752MW asset indicates a high-value corporate divestment.
The completion of the transfer will likely be contingent on clearances from energy regulators and the finalisation of the share transfer agreements.
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