Geregu Power has reported a significant appreciation of its capital base in an unaudited interim financial statement recently submitted to the Nigerian Exchange (NGX). Total equity rising to N60.73bn for the first quarter ended 31 March 2026. This is up from N58.63bn recorded at the end of December 2025.
Besides equity growth, Geregu achieved a strategic reduction in its debt profile within the same period. Total liabilities dropped from N246.38bn in December 2025 to N239.33bn by the end of March 2026, a reduction of approximately N7.05bn in just three months.
The deleveraging was most visible in the company’s bond payables and borrowings. Non-current bond payables fell from N24.18bn to N20.04bn, while total borrowings (current and non-current) saw a combined reduction of over N4bn.
Cash and cash equivalents stood at N29.37bn as of 31 March, while trade and other receivables remained robust at N200.26bn, indicating a consistent, though high-volume, revenue pipeline within the power sector.
Total current assets reached N238.19bn, reinforcing the company’s ability to cover its short-term operational requirements while maintaining its status as a fundamentally viable and strategically relevant entity in the Nigerian power market.
All is not well however. Profits after tax fell to N2.10bn, down from N10.43bn in Q1 2025. Revenue dropped to N18.24 billion from N31.76 billion. These sharp declines are believed to reflect transitional challenges (recall that Femi Otedola sold his majority stake in Geregu Power last December to MA’AM Energy, which has since has begun integrating Geregu into its broader energy portfolio), including possible inefficiencies, reduced generation output, and integration costs.
The apparent contradiction between profit decline and capital base growth comes down to the difference between earnings performance and balance sheet strength. Capital base can grow even if profits fall, depending on other balance sheet movements. Possible drivers of growth include Retained earnings from prior periods, revaluation gains, fresh capital injections, suspended dividend payouts etc.
So while Geregu’s profit slump show short-term and operational challenges, its capital base appreciation suggests long-term financial strength and the possibility of eventually turning things around.
