Geregu Power stock freezes at 52-week low amid bond default and rating withdrawal
Nigeria’s first corporate bond default in seven years has triggered a rating withdrawal and severe valuation losses at Geregu Power, freezing trading and raising systemic concerns for the country's debt markets.
Geregu Power Plc shares remain immobilized at a 52-week low of N825.70 following the company’s default on its N40.09 billion Series 1 Senior Unsecured Bond. The missed eighth semi-annual coupon and fourth principal repayment mark Nigeria’s first corporate bond default in seven years.
Long-term shareholders have endured severe wealth erosion, with a 27.67 percent year-to-date decline wiping out approximately N789.5 billion from the power generator’s valuation. At the start of 2026, the stock traded at N1,141.50, valuing the firm at N2.854 trillion.
Agusto & Co has withdrawn its “A-” credit rating for the company and the bond, citing the default and a lack of reliable financial information. The rating agency noted it cannot provide an opinion on creditworthiness while the company’s previously issued financial statements undergo an independent verification process.
This development places renewed focus on credit risk analysis within Nigeria’s debt capital markets. Intelligence Africa Analytics Limited emphasized that the default reinforces the necessity of looking beyond historical financial performance when assessing creditworthiness in the sector.
Market participants are currently pricing in these compounding risks, resulting in heavy downside contraction rather than a panic-driven freefall. Trading data shows intense illiquidity, with a total volume of just 15,666 shares traded across seven recent sessions as buyers hesitate and sellers refuse to accept lower prices.
The liquidity crisis contrasts sharply with the company’s capital allocation decisions in the 2025 financial year. Despite a marginal net profit dip to N27.25 billion from N27.43 billion in 2024, revenue rose to N184.935 billion from N137.126 billion. Nevertheless, the board secured shareholder approval for an aggressive N22.5 billion dividend payout, representing an 82.5 percent payout ratio.
Navigating this turbulent landscape, Geregu Power has initiated its second major executive shakeup in seven months. The board appointed Mohammed Sani Jaoji as acting chief executive officer, replacing interim CEO Sean Manley of Siemens Energy, whose tenure concluded on August 14, 2026.
Jaoji, a former Technical Assistant to the Minister of Power, brings over three decades of sector experience, though his appointment remains subject to Nigerian Electricity Regulatory Commission approval. Meanwhile, the company stated on August 12 that it remains actively engaged with stakeholders to achieve an orderly resolution to its repayment obligations.
