WorldStage– Market sentiment on the stock of Geregu Power Plc (GPP) remained indifferent on Thursday despite the power generator’s confirmation of the payment of its 8th coupon and part principal repayment under its ₦40.085 billion Series 1 Fixed Rate Bond to bond trustees.
The payment follows recent scrutiny regarding scheduled debt obligations under the company’s multi-issuance bond programme issued under the leadership of Board Chairman Senator Abdul-aziz Abubakar Yari alongside its non-executive and independent directors. Geregu Power Plc reiterated its focus on full compliance with regulatory requirements and contractual obligations going forward.
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.
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The company with 2.064 trillion market capitalisation had during the day confirmed that all funds due for the 8th coupon payment and part principal repayment under the ₦40,085,000,000 Series 1 Fixed Rate Bond issue have been remitted to the Trustees with the Board reaffirming its commitment to preserving shareholder value, maintaining transparency, and upholding high corporate governance standards.
However, market sources told WorldStage that the information that the group’s Chairman Senator Yari was said to have personally stepped in to provide the required funds to liquidate the bond was not exciting to investors.
It was said to have raised the question of what will happen to subsequent coupon payments, whether individual interventions will be waited for to clear them while the real issues behind the first default have not been disclosed and resolved.
The chairman’s intervention was said to prevent further market fallout, stabilize share prices, and preserve the company’s standing in Nigeria’s energy sector.
He was quoted as saying that while his personal intervention cures the immediate default, discussions and engagements remain ongoing with the former management and board regarding reimbursement for obligations inherited from the 2022.
While Geregu Power noted ongoing constructive engagement with relevant parties to resolve legacy matters pre-dating the current Board, emphasizing that this process will not affect the company’s ability to fulfill its ongoing financial commitments, market sources told WorldStage that the silence of the regulatory bodies over the issue is not helping the company as it will take their pronouncements on their findings to restore market confidence.
The regulatory bodies that oversee the activities of the company include the Securities and Exchange Commission (SEC), the Nigerian Exchange Limited (NGX), and the Nigerian Electricity Regulatory Commission (NERC).
The company’s board in a statement had extended appreciation to the regulators and bondholders for their continued engagement and understanding while reaffirming its commitment to preserving shareholder value, maintaining transparency, and upholding high corporate governance standards.
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.
