Geregu Power Plc Faces Scrutiny Over N40bn Bond Default

Geregu Power Plc has faced scrutiny following its corporate debt default, particularly concerning the N40 billion series 1 senior unsecured bond issued on July 28, 2022, with a maturity date of July 28, 2029. At the time of issuance, Amperion Power Distribution Company Limited held 99.99% of Geregu's shares.

The bond was part of a N100 billion multi-instrument issuance program, with proceeds earmarked for general corporate purposes, including expanding power generation capacity and acquiring power assets in Nigeria and Africa. However, a review of financial records revealed that the intended acquisition of Geregu II, for which a $4 million bid bond was committed, was not finalized.

Insiders express concerns that the bond proceeds may have been misappropriated or diverted by the previous management. The default, occurring during the 8th coupon payment and 4th principal repayment, follows the former chairman's sale of his majority stake for N1.088 trillion in December 2025, leading to new leadership under Abdulaziz Yari.