Geregu Faces ₦40bn Bond Default as NERC Dissolves Kaduna Disco Board

Geregu Power Plc has missed scheduled payments on its ₦40.09 billion bond obligations, raising concerns about the company’s liquidity and debt-servicing capacity.

FMDQ Securities Exchange classified the company’s Series 1 bond as being in credit default after Geregu failed to meet its eighth coupon payment and fourth scheduled principal repayment.

The ₦40.09 billion bond was issued in July 2022 under Geregu Power’s ₦100 billion debt issuance programme at a fixed coupon rate of 14.5 per cent, with final maturity due in 2029.

The development comes amid a sharp decline in the company’s financial performance. Geregu’s profit after tax fell by 88 per cent to ₦2.54 billion in the first half of 2026, while revenue dropped by nearly 79 per cent to ₦18.65 billion.

The company has attributed the disruption to a major turbine maintenance programme valued at about ₦61.47 billion, which reduced generation capacity and affected cash flow.

Despite the default, GCR Ratings has maintained Geregu Power’s long-term issuer rating at A(NG) with a stable outlook, reflecting expectations that performance could recover once the turbine overhaul is completed.

In a separate development, the Nigerian Electricity Regulatory Commission, NERC, has dissolved the board of Kaduna Electricity Distribution Company over prolonged financial and regulatory defaults.

NERC said Kaduna Disco owed about ₦415.5 billion to the Nigerian Bulk Electricity Trading Plc and another ₦41 billion to the Nigerian Independent System Operator, bringing its major market obligations to roughly ₦456.5 billion as of May 2026.

The regulator also cited weak investment, poor operational performance, low metering levels and persistent market remittance failures.

NERC has appointed a seven-member interim board to manage the company during the transition and says a new core investor is expected to be selected through an open and competitive process within 12 months.