Geregu Acknowledges Concerns Over N40bn Bond Repayment Default

By Aduragbemi Omiyale

The board of Geregu Power Plc has acknowledged the concerns raised by shareholders, stakeholders, as well as regulators over the inability of the company to pay bondholders for their investment in its N40 billion bond sale.

There were reports that the power-generating organisation defaulted in repaying investors who bought its debt instrument.

In 2022, the company issued a seven-year paper to investors at a coupon of 14.5 per cent to be paid semi-annually. The note is expected to mature in July 2029. But data from the FMDQ Securities Exchange showed that there have been defaults in the 8th coupon payment and the 4th bullet principal repayment.

Reacting to the issue on Thursday, Geregu said it is actively having talks with advisers and others on ways to iron things out.

“Geregu remains actively engaged with relevant stakeholders and advisers regarding the resolution of the various challenges and is committed to achieving an orderly and mutually beneficial outcome.

“Discussions and engagements are ongoing, and the Company will continue to act in good faith in fulfilling its responsibilities,” part of the statement signed by its scribe, The Structure HQ, stated.

The firm explained that since assuming responsibility for its affairs, the current board and management have undertaken a comprehensive review and reconciliation of its transactions, liabilities, operational commitments, financing arrangements, financial obligations and related corporate documentation.

It stressed that this action was to ensure transparency, accuracy and prudent financial management, adding that it remains committed to transparency, responsible corporate governance and constructive engagement with all stakeholders.

The majority stake of Geregu Power was controlled by Mr Femi Otedola. He divested his stake in the energy firm in 2025, with the sale of 95 per cent of his shares in Amperion to MA”AM Energy.

Earlier in 2023, he sold N399 million shares of Geregu to another investor. Before then, he sold his stake in Forte Oil to invest in Geregu Power, which now has the former Governor of Zamfara State, Mr Abdulaziz Yari, as its chairman.