The Federal Government has commenced repayment of long-standing debts owed to power generation companies, a development described by Transnational Corporation Plc as a major step toward resolving one of the biggest financial challenges in Nigeria’s electricity sector.
President and Group Chief Executive Officer of Transcorp Plc, Owen Omogiafo, disclosed this while speaking with journalists on the sidelines of the company’s 20th Annual General Meeting held in Abuja on Friday.
According to her, the move represents the most significant progress recorded so far in addressing historical debt obligations that have weakened liquidity across the Nigerian Electricity Supply Industry for years.
Omogiafo said both Transcorp Power and Transafam Power have already signed settlement reconciliation agreements with the Federal Government.
She explained that payment has already commenced for Transafam, while Transcorp Power is expected to begin receiving payments later this year.
She commended the administration of President Bola Tinubu for taking concrete steps toward resolving legacy financial obligations in the power sector, noting that the development marks a major turning point for power generation companies that have operated for years under severe financial pressure.
The debt repayment forms part of the Federal Government’s broader intervention aimed at clearing legacy liabilities estimated at about N3.3 trillion owed to generation companies and gas suppliers.
The accumulated debt has long been identified as one of the major factors affecting liquidity, investment confidence and operational stability across the sector.
Omogiafo said despite persistent difficulties facing the industry — including gas supply constraints and weaknesses in transmission infrastructure — the group has continued to maintain strong operational performance.
According to her, the company has remained focused on navigating sector-wide challenges while identifying opportunities that support growth and long-term sustainability.
She noted that challenges remain part of the operating environment, but added that the ability to manage those constraints and convert them into opportunities remains central to the company’s strategy.
The Transcorp chief executive also expressed optimism that recent policy interventions and leadership changes in the electricity sector would improve investor confidence and create a more stable operating climate.
She added that the group’s diversified investment structure, particularly in power generation and hospitality, has continued to support growth despite broader macroeconomic pressures.
On shareholder returns, Omogiafo said Transcorp has recorded remarkable progress over the years, moving from what she described as kobo-denominated dividends to significantly stronger payouts.
She said the company’s focus remains on creating sustainable long-term value and maintaining a dividend culture that reflects improved performance.
Financial results presented at the annual meeting showed that the group recorded a 33 per cent increase in revenue, rising to N544 billion in the 2025 financial year.
The growth was driven largely by stronger earnings from the company’s power and hospitality businesses.
Profit before tax rose by 31 per cent to N179.5 billion, while profit after tax increased by 44 per cent to N135.9 billion.
The company said the improved earnings reflected stronger operational efficiency, better cost management and improved business performance across its core segments.
Total assets also grew by 33 per cent to approximately N1 trillion, compared with N751 billion recorded in 2024.
Shareholders’ funds rose by 47 per cent to N353 billion, indicating stronger capitalisation and improved investor confidence.
The board proposed a total dividend of N2.00 per share for the 2025 financial year.
The proposed payout includes an interim dividend of 40 kobo and a final dividend of N1.60, bringing the total dividend distribution to more than N20.32 billion.
Operationally, Transcorp’s power business also posted stronger performance during the year.
Transcorp Power Plc increased its average available capacity to 550 megawatts from 477 megawatts recorded in 2024.
Peak available capacity rose to 625 megawatts, while average generation improved to 391 megawatts from 332 megawatts.
Transafam Power Limited also recorded notable gains.
Available capacity increased to 348 megawatts from 250 megawatts, while average generation rose to 102 megawatts.
The company attributed the improvement to continued asset optimisation and better gas supply conditions.
In the hospitality segment, Transcorp Hotels Plc posted strong performance driven by rising demand and expanded capacity.
A major boost came from the addition of a 5,000-seat event centre in Abuja, which has further strengthened the group’s position in Nigeria’s meetings, conferences and events market.
Chairman of the Board of Directors, Tony Elumelu, said the company’s performance reflected improving operating conditions, disciplined management and sustained support from shareholders.
According to him, the gradually improving business environment contributed to the strong financial results recorded during the year.
He noted that the company’s profit grew by more than 30 per cent, while shareholders are now receiving N2 per share in dividends — a major improvement from previous years when payouts were measured in kobo.
Elumelu said the development reflects the value being created for investors and demonstrates the group’s long-term growth trajectory.
He added that Transcorp’s investments in electricity, hospitality and energy remain focused on supporting economic development, expanding productive capacity and improving living standards.
The Federal Government’s repayment plan had earlier been announced by President Bola Tinubu as part of efforts to restore financial stability in the power sector and improve electricity supply reliability.
The N3.3 trillion settlement addresses legacy debts accumulated between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme.
Following a comprehensive review of the claims, the government approved the amount as full and final settlement aimed at ensuring transparency, fairness and long-term sector sustainability.
A statement earlier issued by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, said implementation of the repayment programme has already begun.
According to the statement, 15 power plants have so far signed settlement agreements valued at about N2.3 trillion, marking the first major phase of the debt resolution process.
