Geregu Power Faces Debt Default
OpenLife News reports that barely nine months after Nigerian politician Abdulaziz Yari took control of Geregu Power Plc through his Abuja-based vehicle, MA’AM Energy, the power company is facing mounting pressure from falling revenue, weaker earnings and a missed debt payment.
Yari’s $750m Takeover
Yari acquired a 95 percent stake in Amperion Power Distribution Company on Dec. 29 for $750 million, giving him control of the entity through which billionaire businessman Femi Otedola had held indirect control of 77 percent of Geregu’s listed shares.
The transaction was financed by a bank consortium with Blackbirch Capital serving as financial adviser.
Otedola resigned as chairman on the day of the transaction. Eight other directors also stepped down, including Chief Executive Akin Akinfemiwa and Deputy Chief Executive Julius Omodayo-Owotuga.
Yari was appointed chairman with immediate effect and a new board was installed. It included Abdulkadeer Njiddah as a non-executive director and Usman Gur Mohammed, Mahmud Magaji, Mohammed Sani Jaafaru and Neka Uzoamaka Adogu as independent non-executive directors.
Geregu’s Debt Burden Gains Focus
At the time of the takeover, Geregu was coming off a strong 2025. The company reported full-year revenue of N184.9 billion ($135.7 million), compared with N137.1 billion ($100.6 million) in 2024.
Pre-tax profit rose slightly to N41.98 billion ($30.9 million).
The picture has since changed sharply. Geregu’s market capitalization stood at N2.85 trillion ($2.1 billion) at the start of 2026, making it the 10th most valuable stock on the Nigerian Exchange. It is now worth N2.06 trillion ($1.51 billion), after shares fell 27.67 percent since the beginning of the year.
The pressure became more serious after Geregu defaulted on its N40.09 billion ($29.4 million) Series 1 Senior Unsecured Bond, according to an updated listing status published by FMDQ Securities Exchange.
The company missed both its eighth semi-annual coupon payment and its scheduled fourth principal bullet repayment.
The bond was issued on July 28, 2022, at a fixed interest rate of 14.50% under Geregu’s N100 billion ($73.4 million) debt issuance program. It has a seven-year term maturing July 28, 2029.
Revenue Slumps 79 Percent After Maintenance
For the six months ended June 30, 2026, Profit after tax fell 88% to N2.54 billion ($1.9 million), from N20.27 billion ($14.9 million). Revenue dropped 78.71% to N18.65 billion ($13.7 million), from N87.63 billion ($64.3 million). Net profit margin fell to 13.34%, from 23.23%.
The second quarter was particularly difficult. Geregu generated just N419.1 million ($308,000) in turnover, compared with N55.87 billion ($41 million) in Q2 2025.
The company had forecast Q1 2026 revenue of N57.11 billion ($41.9 million). The actual results were far weaker.
Geregu attributed the decline to a planned N61.47 billion ($45.1 million) major turbine maintenance programme intended to support long-term plant capacity. The work reduced the amount of capacity and energy the company could bill for during the period.
The company received some relief from financial asset impairment reversals of N16.12 billion ($11.82 million). Total liabilities declined to N239.33 billion ($175.6 million).
Ratings Agency Takes Stable View
GCR Ratings maintained Geregu’s national scale long-term issuer rating at <strong>A(NG) with a stable outlook, citing expectations that power generation and revenue will recover once turbine maintenance is completed and full capacity returns to the grid.
Shares and Market Value Hit
Geregu’s shares closed at N825.7 ($0.60) on Aug. 12, down from N1,141.5 ($0.83) at the start of the year. The 27.67% decline has cut its market capitalization by about N790 billion.
Immediate Test for Yari
For Yari, who took control in a $750 million transaction less than a year ago, the deterioration presents an immediate financial test. The company has moved from N184.9 billion ($135.7 million) revenue in 2025 to just N18.65 billion ($13.7 million) in H1 2026.
Geregu’s financial position now rests heavily on how quickly power-generating capacity and revenue recover following the turbine maintenance program. For now, the numbers show a company under strain, with shares, earnings and cash flows all reflecting the pressure.
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