Geregu Power Plc has paid N6.03 billion owed investors under its N40.09 billion Series 1 Senior Unsecured Bond, according to sources familiar with the transaction, weeks after the company defaulted on scheduled interest and principal payments.
Specifically, the payment, which amounts to N6,026,093,363.10, brings some relief to investors and could ease concerns that had mounted in the capital market following the company’s failure to meet its debt obligations when due.
Sources close to the matter confirmed the payment, although Geregu Power had yet to make a public announcement on the development as of the time of this report last night.
The development comes after FMDQ Securities Exchange classified the seven year bond as being in credit default following the non payment of its eighth semi annual coupon and fourth scheduled principal repayment. The bond was issued on July 28, 2022, at a fixed interest rate of 14.5 per cent under Geregu Power’s N100 billion debt issuance programme and is due to mature on July 28, 2029.
The default had triggered concerns among investors and analysts over Geregu Power’s liquidity position and its ability to service its obligations amid a sharp deterioration in its financial performance.
The company’s unaudited results for the six months ended June 30, 2026, showed that revenue plunged by about 78.7 per cent year on year to N18.66 billion, from N87.63 billion in the corresponding period of 2025.
Profit after tax also fell by about 88 per cent to N2.54 billion, compared with N20.27 billion a year earlier. The sharp decline was particularly pronounced in the second quarter, when revenue fell to just N419.1 million from N55.87 billion in the same quarter of 2025.
The weak performance was linked largely to reduced generation and operational constraints, including a major turbine maintenance programme that significantly affected the company’s generating capacity and cash flows. Reports indicate that Geregu incurred about N61.47 billion on the major turbine maintenance programme.
The bond crisis subsequently deepened when Agusto & Co withdrew the A minus rating previously assigned to Geregu Power and its N40.09 billion Series 1 bond.
The rating agency cited the payment default as well as concerns over the reliability of information available for its credit assessment. Agusto disclosed that Geregu’s management had informed it that previously issued financial statements were undergoing an independent verification process.
Geregu Power, in response to the growing concerns, said it had commenced a comprehensive review of its financial obligations and corporate records, including its transactions, liabilities, operational commitments, financing arrangements and other financial obligations, while assuring stakeholders of an orderly resolution. It also replaced the chief executive of the organisation.
The latest payment therefore represents a significant development in the unfolding bond dispute, particularly because the N40.09 billion represents the total issue size and not the amount that had fallen due for payment.
The bond was structured with semi annual coupon payments and scheduled principal repayments over its seven year tenor. Its default was therefore regarded as a significant event in Nigeria’s fixed income market, particularly as it occurred before the instrument’s 2029 maturity date.
For investors, the immediate payment could reduce pressure around Geregu’s outstanding bond obligations, although questions remain over the company’s underlying cash generation, operational recovery and the status of its financial statements.