Geregu Power Plc has appointed Mohammed Sani Jaoji as acting Chief Executive Officer, effective August 17, 2026, subject to regulatory approval. This second leadership shakeup in seven months follows the non-renewal of interim CEO Sean Manley’s tenure, which expired on August 14.
The executive transition coincides with a critical liquidity crisis. Days prior, Geregu defaulted on a ₦6.03 billion payment obligation under its ₦40.09 billion, 14.5% Series 1 Senior Unsecured Bond. The company's financial health deteriorated sharply in H1 2026, with profit after tax plunging 88% year-on-year to ₦2.54 billion. Revenue also plummeted 78.7% year-on-year, with Q2 revenue collapsing to ₦419 million from ₦55.87 billion in Q2 2025. Management attributed the decline to a massive ₦61.47 billion turbine maintenance programme that temporarily curtailed generation capacity.
The default has triggered immediate credit consequences. Agusto & Co. withdrew its "A-" rating on both Geregu and the bond, citing the default and a lack of reliable information, while GCR Ratings also downgraded or withdrew its assessments due to liquidity pressures. This liquidity crunch has raised questions about capital allocation; a new board under MA’AM Energy approved a ₦22.5 billion dividend in January 2026, shortly after billionaire Femi Otedola divested his majority stake for ₦1.088 trillion in December 2025. Compounding these difficulties, Nigerian power producers are collectively owed approximately ₦6.5 trillion by the government and distribution companies, severely limiting sector-wide cash flows.
Investors should watch for NERC’s approval of Jaoji’s appointment and the subsequent selection of a substantive CEO. Crucially, the market will monitor Geregu's ongoing talks with advisers and regulators to resolve its bond obligations, alongside the recovery of generation capacity following the costly maintenance cycle.
