Geregu Power Generation Company, now under the ownership of Senator Yari, has failed to meet a N40 billion bond payment. This development occurred shortly after Femi Otedola, Chairman of FirstBank, divested his majority shares in the utility firm. Records from the Securities and Exchange Commission confirm the default on the N40.09 billion Series 1 Senior Unsecured Bond.
This debt instrument was launched in July 2022 as part of a N100 billion program. It was designed with a 14.50 percent interest rate and scheduled for full maturity in 2029. By failing to meet the current obligation, the company has broken the terms of the agreement halfway through its lifecycle.
Market analysts have signaled alarm over this shortfall. Financial expert Olumide Adesina noted that if the company were listed in the United States, its market valuation would have plummeted by 20 percent immediately. Other observers, such as finance educator Toby, highlighted that the missed payment indicates severe strain on the company’s liquidity, which is particularly concerning for an essential power supplier.
The company’s financial health appears to be declining, as unaudited reports for the first half of 2025 reveal an 88 percent decline in profit after tax, dropping to N2.51 billion from N20.27 billion the previous year. This situation follows the December 2025 transaction where Otedola transferred his stake to MA’AM Energy Limited, an entity connected to Senator Yari, for N1.88 trillion.
