Geregu Power bond default rattles investors as earnings plunge 88%
Geregu Power Plc has defaulted on a major bond payment following a significant decline in revenue and profitability during the first half of 2026. The company attributes these financial struggles to a costly turbine maintenance program intended to improve long-term infrastructure.
Why it matters
The default signals potential instability in the energy sector and raises concerns for investors regarding the company's liquidity and debt management.
Investors in Geregu Power Plc are facing renewed concerns over the company’s financial position after it defaulted on its N40.09 billion Series 1 Senior Unsecured Bond, missing both its eighth semi-annual coupon payment and scheduled fourth principal repayment.
The default was disclosed in an updated listing status published by FMDQ Securities Exchange, which classified the bond as being in “credit default” over the eighth coupon payment and fourth bullet principal repayment.
The development comes amid a sharp deterioration in Geregu Power’s revenue, profitability and operating cash flows, raising concerns over its immediate liquidity and debt-servicing capacity.
Issued on July 28, 2022, under the company’s N100 billion debt issuance programme, the seven-year bond carries a fixed interest rate of 14.50 per cent, with semi-annual coupon payments and scheduled principal repayments until its July 28, 2029 maturity.
The default therefore occurred midway through the bond’s life, rather than at maturity.
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