Geregu Defaults on N40 Billion Bond Payment 8 Months After Otedola’s Exit

Geregu Power Plc has defaulted on a scheduled payment for its N40.09 billion bond obligations, signaling potential financial instability for the power generation company. This default, disclosed by FMDQ Securities Exchange, comes less than eight months after businessman Femi Otedola sold his controlling stake in the company in December 2025.

The missed payment affects the bond's eighth coupon payment and fourth bullet principal repayment. The bond, issued in July 2022 with a 14.50 percent fixed coupon rate and a seven-year tenor, was due for semi-annual payments. The default occurs midway through the bond's life, raising immediate questions about Geregu Power's liquidity and ability to service its debts.

This financial setback coincides with a sharp decline in Geregu Power's performance. The company reported an 88 percent drop in profit after tax and a 79 percent fall in revenue for the first half of 2026. Profit after tax decreased to N2.54 billion in the six months ending in June 2026.

In a separate development, the Nigerian Electricity Regulatory Commission (NERC) announced the dissolution of the board of Kaduna Electricity Distribution Plc (KAEDC). NERC cited prolonged financial and regulatory defaults, with KAEDC owing approximately N456.5 billion as of May 2026. This includes N415.5 billion owed to the Nigerian Bulk Electricity Trading Plc (NBET) and N41 billion to the electricity market's Independent System Operator (ISO).