Geregu Power Plc has commenced a comprehensive review of its financial obligations and corporate records following concerns over its ability to meet repayment obligations under its bond programme.
The company said its board and management are reviewing its transactions, liabilities, operational commitments, financing arrangements and other financial obligations to gain a clearer picture of its financial position.
The development follows Geregu’s default on the eighth semi-annual coupon payment and fourth scheduled bullet principal repayment under its N40.09 billion Series 1 Senior Unsecured Fixed Rate Bond.
The company said the review is aimed at promoting transparency, strengthening financial accountability and supporting efforts to resolve the challenges surrounding its outstanding obligations.
The repayment concerns come as Geregu Power faces a significant deterioration in its financial performance.
For the first half of 2026, the company recorded a 78.7 per cent decline in revenue, which fell to N18.65 billion, compared with N87.63 billion in the corresponding period of 2025.
Profit after tax also dropped sharply by about 88 per cent, falling from N20.27 billion in the first half of 2025 to N2.54 billion in the same period of 2026.
The company has linked the operational pressures affecting its business to its N61.47 billion major turbine maintenance programme, which has constrained its power generation capacity and weighed on financial performance.
In its response to concerns surrounding its bond obligations, Geregu said the current board and management had initiated a detailed review of its financial and corporate records.
The exercise covers transactions, liabilities, operational commitments, financing arrangements, financial obligations and related documentation.
According to the company, the review is expected to provide greater clarity on its financial position while helping management determine how best to address its responsibilities to stakeholders.
Geregu also acknowledged concerns raised by shareholders, investors and regulators, saying it remains in discussions with relevant stakeholders and professional advisers.
Despite the challenges, Geregu said it remains committed to resolving the issues surrounding its financial obligations.
The company said discussions with relevant parties are ongoing and pledged to work towards an orderly and mutually beneficial resolution.
Geregu remains actively engaged with relevant stakeholders and advisers regarding the resolution of the various challenges and is committed to achieving an orderly and mutually beneficial outcome, the company said.
The assurance is expected to be closely watched by investors, particularly given the company’s outstanding bond obligations and recent deterioration in earnings.
Geregu stressed that the financial review would not distract the company from its core responsibility of generating electricity.
The power producer said it remains committed to maintaining its operations while addressing the challenges surrounding its financial obligations.
The company also pledged to uphold transparency and responsible corporate governance throughout the process.
Its board and management said they would continue engaging with stakeholders and provide updates on material developments in line with applicable regulatory requirements.
The development places renewed attention on Geregu Power’s financial position as the company navigates operational pressures, reduced revenue and significant maintenance costs.
The resolution of the N40.09 billion bond obligations will be closely monitored by investors and other participants in Nigeria’s capital and power sectors.
For now, the company is reviewing its financial position and engaging relevant stakeholders as it seeks a resolution to the outstanding obligations.
The immediate focus for investors will be whether Geregu can restore sufficient cash flow, maintain electricity generation and establish a credible pathway for addressing its bond repayment commitments.
