WorldStage– The Board Chairman of Geregu Power Plc (GPP), Senator Abdul-aziz Abubakar Yari has shed more light on why he is deploying his personal resources to pay the 8th coupon and part principal repayment under its ₦40.085 billion Series 1 Fixed Rate Bond to bond trustees, saying it is not an admission that the obligation is personally his , nor is it a judgement that the current Board or management created the problem.
In a personal statement to announce his intervention on the issue, Senator Abubakar Yari said his intervention does not absolve the former owners of the company a disappointing legacy.
“I want to be equally clear that while this intervention addresses the immediate concern facing bondholders, it does not close the underlying matter, and it does not absolve the former owners of a disappointing legacy,” Senator Abubakar Yari said in the statement.
The missed payment of Geregu Power’s ₦40.09 billion Series 1 Senior Unsecured Bond (issued in July 2022 at a 14.5% fixed rate under a ₦100 billion debt program) came roughly eight months after majority owner Femi Otedola sold his controlling stake to MA’AM Energy Limited in late 2025, leading to a new board chaired by Senator Abdulaziz Yari.
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“As our ongoing discussions with the former owners and management continue, they have committed themselves to working in good faith toward a full and fair accounting of how the obligation arose and how it ought properly to be treated and resolved between the parties,” he said.
WorldStage earlier reported that market sentiment on the stock of Geregu Power remained indifferent on Thursday despite the power generator’s confirmation of the payment of the defaulted bond.
The company’s stock which had plunged by 18.99% from its 52 week high of N1019.3 per share on the Nigerian Exchange opened and closed at N825.7 on Thursday, with only 33 trades involving 1,549 shares valued at N1.151 million.
Addressing the market fears in his statement, the Sentor said, “My overriding concern throughout has been the confidence our investors and partners place in Geregu Power.
“A dispute of this nature, however it originated, should not be allowed to unsettle bondholders, cloud the outlook of our shareholders, or interfere with the operations of a company that so many people depend on for their livelihoods and for the power that keeps businesses and homes running. Confidence, once shaken, is expensive to rebuild. I would rather act early than watch that happen.”
On his opinion on the disposition of the former owners of the company to the bond issue after ongoing discussions, he said, “I am encouraged to report that they have indicated their willingness to continue engaging toward a lasting and amicable solution.”
THE CHAIRMAN STATEMENT
I have followed, with close attention, the concern that recent developments around a bond obligation have generated among our bondholders, shareholders, and the wider market. That concern is legitimate, and I share it. Geregu Power has a reputation for reliability and sound governance, hence, any action or inaction that calls that reputation into question deserves to be taken seriously, and I want our stakeholders to know that it has been.
Let me be clear about my role. As Chairman of the Board, I am not part of the day-to-day management of this company. This division of responsibility exists for good reason. It is what allows a board to provide oversight rather than duplicate the work of management. I raise this not to distance myself from the company’s obligations, but so that our stakeholders understand the capacity in which I am speaking.
That said, oversight does not mean detachment. Since this matter came to light, I have been closely engaged, in regular contact with the Board, management, our financial and legal advisers, and other relevant parties, working to understand precisely how the situation arose and what is required to resolve it properly. I have also been in ongoing discussions with the former owners and management of the company, under whose tenure the bond in question was issued and the underlying arrangements were made. I am encouraged to report that they have indicated their willingness to continue engaging toward a lasting and amicable solution.
My overriding concern throughout has been the confidence our investors and partners place in Geregu Power. A dispute of this nature, however it originated, should not be allowed to unsettle bondholders, cloud the outlook of our shareholders, or interfere with the operations of a company that so many people depend on for their livelihoods and for the power that keeps businesses and homes running. Confidence, once shaken, is expensive to rebuild. I would rather act early than watch that happen.
For that reason, and notwithstanding that the day-to-day management of this obligation is not mine to carry, I have decided, in my capacity as Chairman, to personally step in and provide the funds required to address the immediate outstanding bond obligation.
I want to be precise about what this means and what it does not mean. This is not an admission that the obligation is personally mine, nor is it a judgement that the current Board or management created this problem. It is a decision made in the interest of the institution I am privileged to chair.
I want to be equally clear that while this intervention addresses the immediate concern facing bondholders. It does not close the underlying matter, and it does not absolve the former owners of a disappointing legacy. As our ongoing discussions with the former owners and management continue, they have committed themselves to working in good faith toward a full and fair accounting of how the obligation arose and how it ought properly to be treated and resolved between the parties.
Our objective, ultimately is a final, mutual acceptable resolution: fair treatment or reimbursement of the funds I am advancing now to protect the company, and clear, dependable arrangements for the company’s future obligations to bondholders. I have every confidence that, with the good faith already shown by all sides, we will arrive at that outcome
To our bondholders, our shareholders, and everyone who has built something lasting with Geregu Power: this company’s obligations will be honoured, its governance will remain sound, and its future is not in question.
About Geregu Power Bond default
Geregu Power Plc recently made headlines following a repayment default on its debt obligations:
Overview of the Default
The Instrument: The missed payment involves Geregu Power’s ₦40.09 billion Series 1 Senior Unsecured Bond (issued in July 2022 at a 14.5% fixed rate under a ₦100 billion debt program).
FMDQ Classification: FMDQ Securities Exchange flagged the bond status as a credit default, specifically citing a missed 8th semi-annual coupon payment and 4th bullet principal repayment due on July 28, 2026.
Rarity: It represents the first default on a corporate bond in Nigeria’s capital market in seven years.
Contributing Factors
Operational Collapse & Revenue Drop: Geregu Power experienced a sharp drop in generation during H1 2026 (largely attributed to major plant maintenance disruptions), causing Q2 2026 revenue to plummet by nearly 99% compared to Q2 2025.
Corporate Ownership Shift: The missed obligation came roughly eight months after majority owner Femi Otedola sold his controlling stake to MA’AM Energy Limited in late 2025, leading to a new board chaired by Senator Abdulaziz Yari.
Controversial Dividend Payout: A dividend distribution of ₦22.5 billion (roughly an 82.5% payout ratio) was approved by shareholders in June 2026 shortly before the debt service date, drawing scrutiny from debt market analysts given the liquidity strain.
Recent Resolutions
Geregu Power admitted the default and engaged advisers to resolve the issue. Recent reports indicate the company cleared ₦6.03 billion owed to investors under the Series 1 bond to alleviate investor anxiety, though full settlement status on market exchanges continues to be monitored.
