By News Desk

ABUJA, Nigeria — The Chairman of the Board of Directors of Geregu Power Plc, Senator Abdul’aziz Abubakar Yari, has personally provided private funds to settle the company’s outstanding bond obligations following a recent default on scheduled coupon and principal repayments.

The announcement was conveyed in an official press statement released on August 19, 2026, aimed at reassuring bondholders, institutional investors, and capital market stakeholders regarding the financial stability of the power generation utility.

Context of the Debt Default and Personal Funding

The financial liability stems from Geregu Power’s ₦40.09 billion Series 1 Senior Unsecured Bond issued in July 2022 under previous management and ownership. Ownership of the power firm transitioned to Yari’s investment group in late 2025.

In the official statement, Senator Yari outlined his rationale for stepping in directly to fund the debt service:

• Scope of Responsibility: Yari emphasized that while board leadership oversees corporate strategy rather than day-to-day debt servicing, he elected to advance personal capital to avert reputational damage and protect company equity.
• Dispute with Previous Management: The statement clarified that his intervention does not relieve the company’s former owners of liability. Discussions remain ongoing regarding full accounting and eventual reimbursement for the inherited debt obligations.
• Market Stability: Yari noted that failure to intervene early would undermine investor confidence in the broader electricity market and negatively impact shareholders.

Reactions and Governance Concerns

The development has triggered public reaction from legal and civil rights commentators, including legal practitioner Chidi Odinkalu, who raised questions online regarding corporate governance standards and the normalization of personal bailouts by political figures for publicly listed energy corporations.

Despite the governance questions surrounding executive intervention, the personal capital injection resolves immediate debt default actions by bond trustees. Further financial disclosures regarding reimbursement agreements between current and previous management are expected in subsequent regulatory filings to the Nigerian Exchange Group.