Geregu Power defaults on N40.09 billion bond in Nigeria

Geregu Power Plc has defaulted on its N40.09 billion Series 1 Senior Unsecured Bond, marking the first corporate bond default in Nigeria's debt capital market in seven years. According to the FMDQ Securities Exchange, the company missed its eighth semi-annual coupon payment and its fourth scheduled principal bullet repayment.

The default follows a significant decline in the company's financial performance. For the six-month period ending June 30, 2026, Geregu Power reported an 88% drop in profit after tax to N2.54 billion, down from N20.27 billion in the previous year. Revenue also saw a substantial decrease, falling 78.71% to N18.65 billion.

The missed payments raise questions regarding the company's near-term liquidity and operational stability, especially as these results contrast sharply with earlier financial guidance. The default occurs at a sensitive time for the Nigerian power sector as regulators work to stabilize investor confidence in the industry's finances.