The Federal Government has begun the process of repaying longstanding debts owed to power generation companies, a development hailed by Transnational Corporation Plc (Transcorp) President and Group Chief Executive Officer, Owen Omogiafo, as the most significant progress yet in addressing liquidity challenges within Nigeria’s electricity sector.
Omogiafo disclosed this on the sidelines of Transcorp’s 20th Annual General Meeting in Abuja, stating that settlement reconciliation contracts have been signed for Transafam and Transcorp Power. Payments have commenced for Transafam, with Transcorp Power set to receive theirs later this year.
This initiative is part of the Federal Government’s intervention to clear legacy debts, estimated at approximately N3.3tn, owed to generation companies and gas suppliers. This issue has long constrained liquidity across the Nigerian Electricity Supply Industry.
Omogiafo commended President Bola Tinubu’s administration for this progress, noting that the plan addresses debts accumulated between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme. A statement from the Presidency indicated that N3.3tn was agreed upon as a full and final settlement.
Implementation of the repayment plan has already begun, with fifteen power plants signing settlement agreements valued at N2.3tn. Despite persistent sector challenges such as gas supply constraints and transmission infrastructure gaps, Transcorp has continued to deliver strong performance.
The Group’s financial results for the 2025 financial year showed a 33 per cent increase in revenue to N544bn, driven by its power and hospitality businesses. Profit before tax rose by 31 per cent to N179.5bn, and profit after tax grew by 44 per cent to N135.9bn.
Total assets increased by 33 per cent to about N1tn, while shareholders’ funds rose by 47 per cent to N353bn. The Board proposed a total dividend of N2.00 per share for FY2025, amounting to over N20.32bn.
Operationally, Transcorp Power Plc increased its average available capacity to 550MW from 477MW in 2024, with peak capacity reaching 625MW. Transafam Power Limited improved its available capacity to 348MW from 250MW.
Transcorp Hotels Plc also reported strong performance, bolstered by increased demand and the addition of a new 5,000-seat event centre in Abuja.
