Geregu Defaults on N40 Billion Bond Payment 8 Months After Otedola’s Exit
•NERC sacks Kaduna Disco board over N456.5bn debt •Says Disco owes NBET N415.5bn, NISO N41bn Emmanuel Addeh in Abuja Geregu Power Plc has missed a scheduled payment on its N40.09
Geregu Power Plc, a Nigerian power generation company, has missed a scheduled payment on its N40.09 billion bond obligations. This default has raised investor concerns about the financial health of the company, less than a year after billionaire businessman Femi Otedola exited the firm in a $750 million transaction. The bond, issued in 2022, is valued at N40.09 billion and has a seven-year tenor.
The missed payments are not a maturity-related issue but rather a failure to meet debt service obligations during the bond's life. The situation coincides with a significant decline in the company's financial performance, with profit after tax dropping 88% and revenue falling 79% in the first half of 2026. Geregu Power attributes the operational disruption to a major turbine maintenance programme estimated at N61.47 billion, which has temporarily reduced electricity output and cash flows.
Despite the deterioration, the company has retained some balance-sheet support, including financial asset impairment reversals.
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