Yari Blames Otedola, Akinfemiwa for Geregu N40bn Bond Default, Assures Investors

Senator Abdulaziz Yari, Chairman of the Board of Directors of Geregu Power Plc, has stated that the company's N40 billion bond default can be attributed to its former majority owner and Chairman, Femi Otedola, and former Chief Executive Officer, Akin Akinfemiwa. This comes after MA'AM Energy Limited, the new owners of Geregu Power, acquired the company from Otedola for approximately $750 million in December 2025, leading to a change in controlling ownership and a new board led by Yari.

However, it has been alleged by corporate lawyer Faruk Yusuf that the former owners of Geregu Power, Amperion Power, misled MA'AM Energy Limited about the funds meant to secure the bond obligations. Yusuf claimed that the money was held in an escrow account, even though it had already been utilized. This has heightened concerns over the company's ability to meet its bond obligations and raised questions about its financial position and corporate governance.

Despite the default, Yari personally intervened to provide N6 billion in funds to address the immediate outstanding obligation. He emphasized that this intervention does not absolve the former owners of their disappointing legacy and that he is actively engaged in discussions with them and the current board and management to find a lasting and amicable solution.

Yari clarified that his decision to provide the funds was driven by the need to protect the company's reputation and restore investor confidence, rather than accepting personal responsibility for the obligation.

According to Yari, the aim is to reach a mutually acceptable resolution, including fair treatment or reimbursement of the funds he has advanced to protect the company and clear arrangements for the company's future obligations to bondholders. He expressed confidence that the ongoing engagement with former owners and management will lead to a resolution that safeguards the company's operations and maintains investor confidence.