Geregu Power Defaults on N40 Billion Bond Payment

Geregu Power Plc has defaulted on a N40.09 billion bond payment, a significant financial breach that has intensified concerns over the power generation company's liquidity and operational stability. The default, disclosed in an updated listing by the FMDQ Securities Exchange, involves the missed eighth coupon payment and fourth principal repayment on its Series 1 Senior Unsecured Bond. The bond, issued on July 28, 2022, under a N100 billion debt issuance programme, carries a fixed 14.50% interest rate and is scheduled to mature on July 28, 2029. The missed payments represent a midterm breach, occurring midway through the bond's seven-year lifecycle.

The default coincides with a severe deterioration in Geregu Power's financial performance. For the first half of 2026, the company reported an 88% decline in profit after tax to N2.54 billion, down from N20.27 billion in the same period of 2025. Revenue plunged 78.71% to N18.65 billion from N87.63 billion. The contraction was particularly acute in the second quarter, where revenue collapsed to N419.1 million from N55.87 billion in Q2 2025. These results fell far short of the company's own earlier projections, which had forecast Q1...