Yari Blames Otedola, Akinfemiwa for Geregu N40bn Bond Default

Geregu Power Plc Chairman Abdulaziz Yari has attributed the company’s recent bond default to arrangements made under its former ownership and management, led by Femi Otedola and former Chief Executive Officer Akin Akinfemiwa.

Yari said the N40.09 billion Series 1 Senior Unsecured Bond was issued in July 2022, more than three years before the current ownership and board took control of the company in December 2025.

The Geregu chairman said he had personally provided funds to settle the immediate outstanding obligation following the company’s default on a scheduled coupon and principal repayment.

The amount due at the time of the default was about N6.026 billion, rather than the entire N40.09 billion value of the bond, according to financial expert Faruk Yusuf.

Yari stressed that his intervention should not be interpreted as an admission of personal liability or responsibility by the current board and management.

He said discussions were ongoing with the former owners and management towards a lasting resolution, including possible reimbursement of the funds he advanced to protect the company and reassure investors.

Yari also assured bondholders and shareholders that Geregu would honour its obligations and maintain sound corporate governance.

The development follows concerns over the use of funds associated with the bond after an earlier planned acquisition of another power asset did not materialise. Allegations that funds earmarked for the bond obligations were subsequently utilised have also emerged, although those claims have not been independently established.