Agusto & Co, Nigeria’s premier credit rating agency, has withdrawn its “A-” rating assigned to Geregu Power Plc’s N40.09 billion 7-year 14.5% Series 1 Senior Unsecured Fixed Rate Bond due 2029.
The rating agency cited the power generation company’s failure to meet its debt obligations as the primary driver behind the action.
The decision follows an initial report by Pluboard detailing how FMDQ Securities Exchange updated the status of Geregu Power’s Series 1 bond to reflect a credit default on its eighth coupon payment and fourth principal repayment.
In a statement published on August 14, Agusto & Co said it had withdrawn the ‘A-‘ rating “following the Company’s recent default on the eighth coupon payment and fourth principal repayment.”
The agency went further, disclosing a dimension to the Geregu situation that had not previously been made public. It said “the withdrawal reflects both the default event and Agusto & Co’s conclusion that it no longer possesses sufficient reliable information to maintain a credit rating opinion.”
The reason for that information gap, according to Agusto, is that Geregu Power’s own management told the agency that the company’s “previously issued financial statements were undergoing an independent verification process.”
“Pending completion of this review, Agusto & Co is unable to rely on the current audited financial statements and, therefore, cannot provide an opinion regarding the Company’s creditworthiness,” the agency said.
Agusto added that it would “reassess Geregu Power’s rating after the completion of the independent forensic review and receipt of reliable financial statements for the year ended December 31, 2025.”
Following Pluboard’s report on the missed debt service, the board and management of Geregu Power Plc issued a statement to the Nigerian Exchange (NGX) addressing the default and reassuring investors.
The statement, signed by company secretary The Structure HQ, acknowledged the anxiety generated across the market:
“The board of Geregu Power Plc wishes to assure the country’s investment community of its commitment to resolving the various challenges confronting it,” the company stated. “The company is actively engaged with relevant stakeholders to resolve the various challenges and ensure an orderly and mutually beneficial outcome.”
The company added that the current board—which assumed leadership following the acquisition of a majority stake by MA’AM Energy Limited—is conducting a structured financial cleanup.
“Since assuming responsibility for the company’s affairs, the current board and management have undertaken a comprehensive review and reconciliation of the company’s transactions, liabilities, operational commitments, financing arrangements, financial obligations, and related corporate documentation,” the disclosure added. “This process is aimed at ensuring transparency, accuracy, and prudent financial management.”
Sharp Operational Downturn
Fact-checking of market data confirms that while the total value of the Series 1 debt facility issued under Geregu’s N100 billion multi-issuance program stands at N40.09 billion, the actual default applies specifically to the missed semi-annual coupon payment and amortizing principal installment due in July 2026.
The liquidity strain coincides with a sharp drop in operational output during the second quarter of 2026. Company filings show that half-year revenue fell 78.7% to N18.65 billion from N87.63 billion in H1 2025, driven largely by a near-complete stall in Q2 generation output where turnover plunged to N419.1 million compared to N55.87 billion in the same period of 2025. Consequently, half-year profit after tax contracted 88% to N2.5 billion.
Geregu’s Series 1 bond, issued on July 28, 2022, represents the first major corporate debt default recorded on the Nigerian debt capital market in seven years.
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