Fola Adeola, the co-founder of Guaranty Trust Bank (GTBank) and a trailblazer in Nigeria’s financial sector, has made headlines with the sale of 18.25 million shares in Aradel Holdings Plc. The transaction, valued at approximately N10.9 billion, underscores Adeola’s strategic financial acumen and continues to highlight his influence in Nigeria’s business landscape.
The deal, disclosed through a regulatory filing submitted to the Nigerian Exchange Limited (NGX), was executed on December 31, 2024, with each share sold at N598.50.
Adeola, who previously held over 5% equity in Aradel Holdings, remains a significant figure in Nigeria’s corporate scene. While the sale reduces his stake, it also raises speculation about his next strategic move in the investment world.
About Aradel Holdings
Formerly known as Niger Delta Exploration & Production Plc, Aradel Holdings is a major player in Nigeria’s energy sector, with substantial investments in oil and gas. The company has gained a reputation for its robust financial performance, achieving a compound annual growth rate (CAGR) of 48.11% from 2019 to 2023.
Aradel’s stellar performance includes:
- 234.51% year-over-year (YoY) revenue growth in 2023, driven by increased oil and gas production.
- A record N377.58 billion in revenue during the first nine months of 2024, marking a 207% YoY increase.
The company recently transitioned from the NASD OTC market to the Nigerian Exchange, listing at N702.69 per share, a move that bolstered its market credibility and attracted international investors.
The Bigger Picture
Adeola’s decision to sell shares comes amid Aradel’s expansion efforts, including its acquisition of Nigeria’s Olo and Olo West fields from TotalEnergies and NNPC for $16 million, with $3.5 million in deferred payments.
Additionally, Aradel has announced plans to acquire a 5.14% stake in Chappal Energies Mauritius Limited, a move aimed at strengthening its portfolio in upstream energy projects across Africa.
Fola Adeola’s Legacy
Known for his visionary leadership, Fola Adeola co-founded GTBank, one of Africa’s most successful financial institutions. Beyond banking, he is the founder of FATE Foundation, an organization dedicated to nurturing entrepreneurs, and a member of the Commission for Africa.
While the reasons behind the sale remain undisclosed, the move aligns with Adeola’s history of making strategic financial decisions that align with his long-term vision.
Aradel’s Continued Success
With a strong market position and ongoing expansion, Aradel remains one of Nigeria’s most promising energy companies. As the company charts new growth trajectories, the recent transaction underscores the dynamic interplay between Nigeria’s financial and energy sectors.
Adeola’s sale of shares may signal a strategic repositioning, but it also highlights the opportunities in Nigeria’s burgeoning energy market—a sector attracting both local and global interest.
