Yari Blames Otedola, Akinfemiwa for Geregu N40bn Bond Default, Assures Investors

The Chairman of the Board of Directors of Geregu Power Plc, Senator Abdulaziz Yari, has attributed the company’s N40 billion default to its former majority owner and Chairman, Femi Otedola, and former Chief Executive Officer, Akin Akinfemiwa, while assuring that the outstanding issues were being addressed.
This comes as the Managing Partner at Segun Suleiman & Co., Faruk Yusuf, who spoke during an interview on ARISE News Channel, alleged that the former owners of Geregu Power, Amperion Power, misled the company’s new owners, MA’AM Energy Limited, over funds meant to secure its bond obligations, claiming that the money was held in an escrow account when it had allegedly already been utilised.
The allegations had heightened concerns over Geregu’s ability to meet its obligations to bond investors following the company’s default on a N40 billion bond obligation, putting its position and corporate governance under increased scrutiny.
On December 29, 2025, Otedola, the majority shareholder, sold his interest in Geregu Power to MA’AM Energy Limited for about $750 million, resulting in a change in its controlling ownership and a new board led by Yari.
But Yari, yesterday, said although the bond in question was issued and the underlying arrangements made under the tenure of the former owners and management, he decided to personally intervene to provide funds required to settle the immediate outstanding obligation.
THISDAY learnt that the intervention was in the sum of N6 billion.
In a statement he personally signed, Yari stressed that the move should not be interpreted as an admission of personal liability or an indication that the current board or management was responsible for the problem.
“I have also been in ongoing discussions with the former owners and management of the company, under whose tenure the bond in question was issued and the underlying arrangements were made. I am encouraged to report that they have indicated their willingness to continue engaging toward a lasting and amicable solution,” he stated.
“This intervention addresses the immediate concern facing bondholders. It does not close the underlying matter, and it does not absolve the former owners of a disappointing legacy,” the former Zamfara State governor noted.
Yari admitted that the situation had generated legitimate concerns among bondholders, shareholders and the wider market, noting that Geregu’s reputation for reliability and sound governance made it imperative to address the matter decisively.
According to him, his decision to personally provide the funds was driven by the need to protect the company’s reputation and restore confidence among investors, rather than an acceptance of responsibility for the obligation.
“I want to be precise about what this means and what it does not mean. This is not an admission that the obligation is personally mine, nor is it a judgment that the current board or management created this problem. It is a decision made in the interest of the institution I am privileged to chair,” he added.
He pointed out that he had been closely engaged with the board, management, financial and legal advisers and other relevant parties since the matter emerged, in an effort to establish how the obligation arose and determine the appropriate path towards its resolution.
According to him, the immediate funding would protect bondholders from further uncertainty while discussions continued with the former owners and management on the underlying liability.
He stated that the former owners and management had committed to working in good faith towards a full and fair accounting of how the obligation arose and how it should be treated and resolved between the parties.
“Our objective, ultimately, is a final, mutually acceptable resolution: fair treatment or reimbursement of the funds I am advancing now to protect the company, and clear, dependable arrangements for the company’s future obligations to bondholders,” Yari said.