Geregu Power Plc has reported a strong third-quarter performance for 2025, posting a pre-tax profit of N11.15 billion, representing an 82.5% increase compared to the same period in 2024. Despite slightly missing its internal forecast, the result underscores the company’s sustained operational strength and improved revenue generation.

When combined with its half-year profit of N26.31 billion, Geregu’s total pre-tax profit for the first nine months of 2025 stood at N37.46 billion, up 3.3% year-on-year.

Strong Revenue Growth

The company’s revenue for Q3 2025 surged by 37.4% to N43.83 billion, driven largely by higher energy sales and capacity charges. This brought Geregu’s nine-month revenue to N131.47 billion, already achieving about 96% of its entire 2024 revenue.

Energy sales remained the company’s key revenue driver, accounting for more than 65% of total income. Energy sales rose by 39.7% to N28.76 billion in the quarter, while capacity charges increased by 33% to N15.1 billion.

Rising Costs and Solid Profitability

Despite the higher earnings, input costs also increased notably. Gas supply and transportation consumed more than 65% of total revenue in Q3 2025, compared to 58% in the same period last year.

This resulted in a 53% year-on-year jump in the cost of sales to N28.58 billion, bringing total costs for the first nine months to N78.5 billion. Nevertheless, Geregu maintained strong profitability, with operating profit climbing to N12.55 billion, an 89.9% increase from the N6.6 billion recorded in Q3 2024.

Balance Sheet and Financial Position

As of September 2025, Geregu Power’s total assets stood at N273.15 billion, reflecting a 12.2% increase from N243.47 billion at the end of 2024.

Trade receivables made up over 62% of total assets, while property, plant, and equipment—valued at N66.24 billion—accounted for about 24.2% of the asset base.

On the equity side, retained earnings formed the bulk of shareholders’ funds, representing 98% of total equity valued at N56.41 billion. This means the company’s total assets are roughly five times its equity base, showing strong leverage and asset utilization.

Key Financial Highlights (Q3 2025 vs Q3 2024)

• Revenue: N43.83 billion (+37.4%)

• Cost of Sales: N28.58 billion (+52.6%)

• Gross Profit: N17.25 billion (+30.9%)

• Operating Profit: N12.55 billion (+89.9%)

• Profit Before Tax: N11.15 billion (+82.5%)

• Profit After Tax: N4.92 billion (+17.7%)

• Earnings per Share (EPS): N1.97 (+17.9%)

• Total Assets: N273.15 billion (+12.2%)

• Shareholders’ Funds: N56.41 billion (+7.3%)

Market Performance and Outlook

As of October 10, 2025, Geregu Power’s shares traded at N1,141.50 on the Nigerian Exchange, reflecting a 0.74% year-to-date decline.

Analysts say the company’s Q3 performance highlights its resilience amid rising operational costs. Geregu’s pre-tax profit margin of over 25% indicates strong efficiency and disciplined cost control, though its after-tax margin of around 11% shows the impact of higher taxation.

While rising gas prices and growing receivables remain concerns, Geregu Power’s consistent profitability, efficient operations, and healthy balance sheet continue to position it as one of Nigeria’s strongest players in the power generation sector.

The Economic and Financial Crimes Commission (EFCC) has arraigned Mrs. Ngozi Olejeme, former board chairman of the Nigeria Social Insurance Trust Fund (NSITF), over allegations of money laundering and misappropriation involving ₦1 billion.

Olejeme appeared before Justice Emeka Nwite of the Federal High Court in Maitama, Abuja, on Wednesday, October 8, 2025, where she faced an eight-count charge bordering on money laundering, conversion, and unlawful possession of funds.

According to the EFCC, the former NSITF chair allegedly converted and transferred proceeds of unlawful activities while in office. One of the charges accused her of indirectly converting ₦321.6 million through ADIN Miles International Ltd in February 2012, in violation of the Money Laundering (Prohibition) Act, 2011 (as amended).

Another count alleged that Olejeme procured one Chuka C. Eze to convert $2 million into naira for payment to ADIN Miles International Ltd, knowing the funds were proceeds of illegal activity.

During her arraignment, Olejeme pleaded not guilty to all charges. The prosecution counsel, Emenike Mgbemele, requested a trial date and stated that 14 witnesses would testify against the defendant. Her defense counsel, Emeka Ogboguo, SAN, urged the court to consider her bail application.

Justice Emeka Nwite granted her temporary release to her lawyer and adjourned the case to November 17, 2025, for hearing of the bail application.

In related developments, the EFCC has recently charged several individuals and companies for similar financial crimes. These include an accountant, Oguibe Promise Nkwachukwu of Travelstar Web Logistics Ltd, accused of stealing ₦200 million from his employer, and Mr. Samson Davies of Signature Advisory Ltd, charged with diverting ₦190.7 million from a construction company, Ronchess Global Resources Plc.

The EFCC disclosed that in one fiscal year, it recovered ₦364.5 billion, $326.5 million, and other foreign currencies, in addition to securing 4,111 convictions across various courts — underscoring its ongoing efforts to combat financial crimes in Nigeria.

The Naira ended the week on a high note, appreciating to ₦1,458 per U.S. dollar on Friday — its strongest performance since 2024. The rally comes as the Central Bank of Nigeria (CBN) continues to intensify market interventions aimed at stabilizing the foreign exchange (FX) market and sustaining monetary gains achieved in recent months.

According to data published on the CBN’s official website, the Naira opened the week at ₦1,464/$1 on Monday, briefly dipped to ₦1,472/$1 on Tuesday, then strengthened midweek to ₦1,469/$1 on Wednesday and ₦1,464/$1 on Thursday. By Friday, it closed at ₦1,458/$1, reflecting a steady recovery trend.

Narrow Gap Between Official and Parallel Markets

At the parallel market, the Naira traded between ₦1,495 and ₦1,505 per dollar, indicating a small margin from the official rate. Analysts noted that this narrow gap points to reduced arbitrage opportunities, suggesting improved alignment between both market segments — a key policy goal of the CBN.

Week-on-Week Gains

On a week-on-week basis, the Naira appreciated by ₦11, representing a 1.1% gain compared to last week’s close of ₦1,469/$1.

Last week, the local currency traded at ₦1,478/$1 on Tuesday, appreciated slightly to ₦1,464.85/$1 on Thursday, and then weakened to ₦1,469/$1 by the week’s end. The rebound in the latest trading sessions signals growing stability in the FX market.

Foreign Reserves See Modest Growth

Nigeria’s external reserves also recorded a slight increase, rising from $42.4 billion to $42.5 billion over the week. CBN data shows that reserves have been on an upward trajectory since July 14, 2025, boosted by improved oil export receipts and inflows from investors and development partners.

Currency dealers credit the Naira’s recovery to the CBN’s tighter FX management, active market interventions, and continued efforts to discourage speculative trading.

Expert Insights

President of the Association of Bureau De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, told Nairametrics that the strengthening of the Naira is linked to increased crude oil production, better foreign investment inflows, and the CBN’s firm stance on managing dollar demand.

“We’re seeing stronger fundamentals and better coordination between fiscal and monetary policies,” Gwadabe said. “This is restoring confidence and attracting more inflows.”

CBN and Federal Government Maintain Optimism

During a recent address in Uyo, the CBN Governor, Olayemi Cardoso — represented by Hakama Sidi Ali, Acting Director of Corporate Communications — said that ongoing reforms were producing visible results.

“We are seeing gradual inflation moderation and improved FX stability,” he noted, adding that the new BMatch System for forex trading has enhanced market transparency and uniformity across trading platforms.

President Bola Tinubu, in his 65th Independence Day address, also reaffirmed his government’s commitment to maintaining FX reforms. He highlighted that the gap between the official and parallel market rates has narrowed substantially, eliminating multiple exchange windows and strengthening market confidence.

Outlook

Despite earlier skepticism from some economists about the administration’s ambitious FX and inflation targets, the Naira’s current trajectory suggests that ongoing reforms may be taking hold.

Tinubu’s 2025 budget projections anticipated a reduction in inflation from 34.6% to 15% and an exchange rate improvement to around ₦1,500/$1 — benchmarks that now appear increasingly achievable if current trends persist.

The Governor of Ekiti State, Biodun Oyebanji, has presented a ₦415.57 billion budget proposal for the 2026 fiscal year, representing an 11% increase from the 2025 appropriation. The new budget underscores his administration’s commitment to consolidating development gains and advancing key infrastructure and social projects across the state.

According to details published on the Ekiti State Government’s official website, the 2026 budget comprises ₦221.87 billion for Recurrent Expenditure (53% of the total) and ₦193.70 billion for Capital Expenditure (46%).

Focus on Infrastructure and Job Creation

Presenting the budget before the Ekiti State House of Assembly at the Old Assembly Complex in Ado-Ekiti, Governor Oyebanji said the proposal was carefully designed to complete ongoing infrastructure projects, boost job creation, and strengthen livelihood opportunities across critical sectors of the economy.

He noted that the 2026 Appropriation Bill reflects the outcome of extensive consultations held with traditional rulers, community representatives, civil society groups, and other stakeholders during statewide Town Hall Meetings across the three senatorial districts.

Revenue Sources and Funding

The governor explained that the budget will be funded through Federal Allocations, Value Added Tax (VAT), independent revenues from Ministries, Departments and Agencies (MDAs), tertiary institutions, international donor agencies, and other sundry sources.

He emphasized that the fiscal plan aligns with the Ekiti State Development Plan (2021–2050), the Medium-Term Expenditure Framework (2026–2028), and the administration’s Six-Pillar Development Agenda, all prepared in compliance with the National Chart of Accounts (NCoA) adopted by the Nigerian Governors’ Forum (NGF).

Legislative Commitment to Accountability

In his remarks, the Speaker of the Ekiti State House of Assembly, Rt. Hon. Adeoye Aribasoye, pledged that the legislature would ensure accountability and transparency in the implementation of the budget.

“Every naira will be accounted for and directed towards priority sectors that deliver maximum benefit to the people of Ekiti State,” he said, assuring that lawmakers will carefully review the proposal to ensure it aligns with citizens’ needs and aspirations.

Fiscal Reforms and Revenue Expansion

According to the 2026 Draft Budget Estimates released earlier on August 28, 2025, the state plans to diversify revenue sources and strengthen the capacity of the Ekiti State Internal Revenue Service (EKIRS) to reduce reliance on federal allocations.

The report also noted that the government aims to leverage the 2025 Tax Laws, which came into effect on January 1, 2025, to significantly boost internally generated revenue (IGR) across key economic sectors.

Context: States’ IGR Performance

Recent data from the National Bureau of Statistics (NBS) shows that Nigeria’s 36 states and the FCT generated a combined ₦3.63 trillion in Internally Generated Revenue (IGR) in 2024 — bringing the total IGR across the country between 2021 and 2024 to ₦10.88 trillion.

The 2026 Ekiti State budget, therefore, reflects a broader trend of states intensifying efforts to expand fiscal independence and promote sustainable development through strategic investments and improved revenue mobilization.