Geregu Power Defaults on N40bn Bond After Otedola Stake Sale to Yari-Linked Firm
Geregu Power Generation Company, majority-owned by Senator Yari-linked MA’AM Energy after Femi Otedola sold his stake for N1.88 trillion in December 2025, has defaulted on its N40.09 billion Series 1 Senior Unsecured Bond. The bond, issued on July 28, 2022, carries a fixed 14.50 percent interest, pays semi-annual coupons, and repays principal through to its July 28, 2029 maturity. The missed payment marks a midway breach of the seven‑year debt term.
Financial experts warn the default signals serious cash‑flow pressure. Geregu’s unaudited results for the six months ended June 30, 2026 show profit after tax plummeting 88 percent to N2.51 billion, down from N20.27 billion in the same period of 2025. Olumide Adesina noted that, if traded on a US exchange, the firm would likely have lost about a fifth of its value overnight on the news. Finance educator Toby called the missed payment a "serious red flag" for a power supplier.
The default raises concerns about Geregu’s ability to meet operational obligations and could affect electricity supply reliability. Investors should monitor the company’s debt restructuring efforts and consider the heightened risk exposure, while consumers may want to stay informed about any potential service disruptions.