Emmanuel Addeh in Abuja
Geregu Power Plc has commenced a comprehensive review of its financial obligations and corporate records amid concerns over its bond repayment obligations, assuring shareholders, investors and regulators that it is committed to an orderly resolution of the issues.
In a statement issued in response to recent widespread publications concerning the company’s bond repayment obligations, the power generation company said its current board and management had undertaken a detailed review and reconciliation of its transactions, liabilities, operational commitments, financing arrangements and financial obligations.
Geregu Power Plc’s bond default emerged after the company failed to meet the eighth semi annual coupon payment and fourth scheduled bullet principal repayment on its N40.09 billion Series 1 Senior Unsecured Fixed Rate Bond.
The default came amid a sharp deterioration in Geregu’s financial performance in the first half of 2026. Revenue fell 78.7 per cent to N18.65 billion from N87.63 billion in the corresponding period of 2025, while profit after tax plunged about 88 per cent to N2.54 billion from N20.27 billion. The company has linked the operational setback to its N61.47 billion major turbine maintenance programme.
But in a statement, the company said the ongoing exercise also covered related corporate documentation and was aimed at ensuring “transparency, accuracy and prudent financial management.”
“Since assuming responsibility for the Company’s affairs, the current Board and Management have undertaken a comprehensive review and reconciliation of the Company’s transactions, liabilities, operational commitments, financing arrangements, financial obligations and related corporate documentation,” Geregu stated.
It added that the process was intended to provide greater clarity around its financial position while ensuring that the company continued to meet its responsibilities to stakeholders.
Geregu said it was aware of concerns raised by shareholders, stakeholders and regulators, stressing that it remained engaged with relevant parties and advisers to resolve the challenges confronting the company.
“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,” the company said.
According to the power producer, discussions and engagements with relevant stakeholders were ongoing, while it would continue to act in good faith in fulfilling its responsibilities.
The statement followed recent reports raising questions over Geregu Power’s obligations under its bond programme, prompting the company to publicly address concerns surrounding the repayment of its debt.
Geregu reassured investors that the financial review would not distract it from its core business of power generation.
“The Company considers it important to reassure its shareholders, investors, regulators and the general public that it remains fully committed to the task of generating power for its consumers,” it stated.
The company further pledged continued transparency and responsible corporate governance, saying the board and management would maintain constructive engagement with all stakeholders.
“The board and management remain committed to transparency, responsible corporate governance and constructive engagement with all stakeholders,” Geregu said, adding that it would continue to provide the market with appropriate updates on material developments concerning its performance in line with applicable regulatory requirements.
The company expressed appreciation to its stakeholders for their “patience, understanding, and continued support” during the period.