Geregu Power Chairman Blames Ex-Owners for N40bn Bond Default, Assures Investors

Senator Abdulaziz Yari, Chairman of Geregu Power Plc, has directly blamed former majority owner Femi Otedola and ex-CEO Akin Akinfemiwa for the company's N40 billion bond default. Yari assured investors that the outstanding issues are being addressed, emphasizing his personal intervention of N6 billion to meet immediate obligations.

Corporate lawyer Faruk Yusuf of Segun Suleiman & Co. raised further concerns, alleging that the previous owners, Amperion Power, misled MA’AM Energy Limited, the new owners. Yusuf claimed funds held in an escrow account for bond security were allegedly utilized before the ownership transfer, exacerbating worries about Geregu's financial stability and corporate governance.

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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.

Yari acknowledged the legitimate concerns among bondholders and the market, noting Geregu's reputation for reliability. He stated that his personal intervention addresses the immediate problem but does not absolve former owners of responsibility. He is also in discussions with the former owners, who have indicated a willingness to engage towards an amicable solution, aiming to resolve the underlying matter and secure the company's future.

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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.