Geregu Power Plc has defaulted on its N40.09 billion Series 1 bond, exposing significant liquidity challenges hidden behind years of strong revenue and accounting profits. Analysis reveals that the power generator consistently paid out dividends exceeding its free cash flow, while rising trade receivables from the Nigerian Bulk Electricity Trading Plc drained its cash reserves. The company’s aggressive dividend policy, coupled with a tight share structure and limited free float, left minority investors vulnerable as the firm struggled to reconcile reported earnings with actual cash generation.