Geregu Power addresses bond repayment concerns following default

Geregu Power Plc has issued a statement to reassure investors following reports regarding its ability to meet bond repayment obligations. The company stated it is engaging with stakeholders and advisers to resolve outstanding challenges and is conducting a comprehensive review of its financial and operational affairs to ensure transparency and accurate financial positioning.

While the company did not specify the exact value or timeline of the affected obligations, the situation follows a default on its ₦40.09 billion Series 1 senior unsecured bond, which is part of a larger ₦100 billion bond programme. This event has drawn attention to credit risk within Nigeria’s corporate debt market.

Intelligence Africa Ratings noted that while the default is a significant event, it does not necessarily indicate a deterioration of the entire Nigerian power sector's systemic credit fundamentals. The sector continues to face structural challenges, including liquidity pressures and reliance on Nigerian Bulk Electricity Trading Plc as a primary offtaker, but remains supported by high barriers to entry and the essential nature of electricity.