Otedola: Experts react as Yari-owned Geregu defaults on N40bn bond payment

Financial experts have expressed worry following the default of Senator Yari-owned Geregu Power Generation Company on a N40 billion bond payment, months after billionaire businessman Femi Otedola sold his majority stake in the firm. Geregu confirmed the default in an updated listing with the Securities and Exchange Commission. The seven-year bond, issued in July 2022, was part of the company’s N100 billion debt issuance programme and featured semi-annual coupon distributions and amortising principal repayments until July 28, 2029.

Financial analyst Olumide Adesina noted that if Geregu had been traded on the US stock market, it would have lost a fifth of its value following the debt default. Toby, a finance educator, pointed out that for a power generation company supplying electricity in Nigeria, missing these payments is a serious red flag, indicating real pressure on their cash flow.

Geregu’s unaudited financial statements revealed an 88 percent drop in profit after tax to N2.51 billion for the six months leading up to June 30, 2025, compared to N20.27 billion in the same period of 2024. In December 2025, Otedola sold his majority stake in Geregu to MA’AM Energy Limited, a company linked to Senator Yari, for N1.88 trillion.