# Geregu Power bond default and chairman's personal settlement

> Live situation record from CLSTR: https://clstr.news/situations/geregu-power-bond-default-in-nigeria
> Updated: 2026-08-21T14:32:40.000Z. Sources: 9. Developments: 4.

Geregu Power Plc 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. The default followed a sharp decline in financial performance for the six-month period ending June 30, 2026, during which profit after tax dropped 88% to N2.54 billion and revenue fell 78.71% to N18.65 billion. The company missed its eighth semi-annual coupon payment and its fourth scheduled principal bullet repayment.

In a significant development, the company’s Board Chairman, Senator Abdulaziz Abubakar Yari, used personal funds to settle the outstanding bond obligations. Yari, whose investment group acquired the utility in late 2025, stated the intervention aimed to “prevent reputational damage and protect company equity.” He noted that while the debt was inherited from previous management, discussions regarding reimbursement for the liability are ongoing.

The settlement has prompted discussions regarding corporate governance, with legal practitioner Chidi Odinkalu commenting on the implications of political figures using personal capital to bail out publicly listed energy corporations.

This crisis follows scrutiny over the utilization of the original 2022 bond proceeds. While funds were earmarked for expanding capacity and acquiring strategic assets—such as a power generation company through the Bureau of Public Enterprises—company sources suggest the acquisition objectives were not met, leading to internal concerns regarding how the proceeds were deployed under previous management.

## Timeline

### 2026-08-21: Geregu Power Chairman settles bond default with personal funds

Geregu Power Chairman Abdulaziz Yari has personally funded the settlement of a ₦40.09 billion bond default inherited from previous management to protect investor confidence.

3 sources. https://clstr.news/cluster/geregu-power-chairman-settles-bond-default-with-personal-funds

### 2026-08-17: Geregu Power Plc faces scrutiny over N40bn bond usage

Geregu Power Plc faces scrutiny over the use of N40 billion in bond proceeds following a debt default and reports that intended power asset acquisitions were not achieved.

2 sources. https://clstr.news/cluster/geregu-power-plc-faces-scrutiny-over-n40bn-bond-usage

### 2026-08-13: Geregu Power addresses bond repayment concerns following default

Geregu Power Plc is working with stakeholders to resolve bond repayment concerns following a default on its ₦40.09 billion Series 1 senior unsecured bond in Nigeria.

4 sources. https://clstr.news/cluster/geregu-power-addresses-bond-repayment-concerns-following-default

### 2026-08-09: Geregu Power defaults on N40.09 billion bond in Nigeria

Geregu Power Plc has defaulted on a N40.09 billion bond, the first corporate default in Nigeria's debt market in seven years, amid a sharp collapse in revenue and profitability.

3 sources. https://clstr.news/cluster/geregu-power-defaults-on-n4009-billion-bond-in-nigeria

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Cite as: Geregu Power bond default and chairman's personal settlement. CLSTR, https://clstr.news/situations/geregu-power-bond-default-in-nigeria