Geregu Power Plc faces scrutiny over N40bn bond usage

Geregu Power Plc is facing scrutiny following a corporate debt default and questions regarding the utilization of a N40 billion series 1 senior unsecured bond. Issued on July 28, 2022, the bond was intended for general corporate purposes, including expanding power generation capacity and acquiring strategic power assets in Nigeria and other African countries.

Financial records from 2022 indicated the proceeds were earmarked to finance the acquisition of a power generation company through a bidding process with the Bureau of Public Enterprises (BPE). While 2023 records show a $4,000,000 bid bond commitment for the acquisition of Geregu II, company sources suggest the acquisition objective was not met. This has led to internal concerns regarding how the bond proceeds were deployed under the company’s previous management.