The President and Group Chief Executive Officer of Transnational Corporation Plc, Owen Omogiafo, has confirmed that the Federal Government has commenced repayment of longstanding debts owed to power generation companies, describing the development as the biggest breakthrough yet in addressing liquidity challenges within Nigeria’s electricity sector.
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, both Transcorp Power Plc and Transafam Power Limited have signed settlement reconciliation agreements with the government as part of the debt repayment programme.
“For us in Transcorp Power and Transafam, we have actually signed our settlement reconciliation contracts. For Transafam, they started the payments. And for Transcorp Power, they will start sometime this year,” she said.
Omogiafo commended the administration of Bola Ahmed Tinubu for taking concrete steps toward resolving the long-standing debt crisis in the power sector.
“So first of all, let me start by commending the Federal Government under President Bola Tinubu. This is the greatest progress we have made as it relates to dealing with the historical debt,” she added.
The repayment plan forms part of the Federal Government’s intervention to clear legacy debts estimated at about N3.3tn owed to generation companies and gas suppliers, a major issue that has weakened liquidity across the Nigerian Electricity Supply Industry.
Despite ongoing challenges in the sector, Omogiafo said the Group has maintained strong operational and financial performance.
“It’s common knowledge about the challenges the power sector is facing. We deal with the gas issues and the transmission infrastructure issues… but despite the challenges that we saw in the sector, we were able to produce the kind of results that we have produced,” she stated.
She stressed that the company remains focused on turning sector challenges into growth opportunities while sustaining long-term value creation.
“There will always be challenges. That’s just the reality. But it’s what you do with those challenges and how you create opportunities out of them,” she said.
Omogiafo also expressed optimism that recent reforms and leadership changes within the power sector would strengthen investor confidence and improve industry performance.
She highlighted the company’s diversified investments, noting that its power and hospitality businesses continue to drive growth despite prevailing macroeconomic pressures.
On shareholder returns, the Transcorp CEO said the company has undergone a remarkable transformation over the years.
“Once upon a time, Transcorp was paying two kobo… today we are paying dividends in naira. We are creating sustainable value… we can’t pay less than what we’re paying today,” she said.
Financial results presented during the AGM showed that the Group recorded a 33 per cent increase in revenue to N544bn in the 2025 financial year, driven largely by growth in its power and hospitality operations.
Profit before tax rose by 31 per cent to N179.5bn, while profit after tax increased by 44 per cent to N135.9bn, reflecting stronger operational efficiency and earnings performance.
Total assets also climbed by 33 per cent to nearly N1tn from N751bn recorded in 2024, while shareholders’ funds rose by 47 per cent to N353bn.
The Board proposed a total dividend payout of N2.00 per share for the 2025 financial year, comprising an interim dividend of 40 kobo and a final dividend of N1.60, amounting to over N20.32bn in total payouts.
Operationally, Transcorp Power Plc increased its average available capacity to 550 megawatts from 477MW recorded in 2024, while peak capacity rose to 625MW. Average generation also improved to 391MW from 332MW.
Similarly, Transafam Power Limited expanded its available capacity to 348MW from 250MW and improved average generation to 102MW, supported by better gas supply and ongoing asset optimisation.
In the hospitality segment, Transcorp Hotels Plc recorded strong growth driven by increased demand and the addition of a 5,000-seat event centre in Abuja, strengthening its position in Nigeria’s meetings and conferences market.
Earlier, the Chairman of the Board of Directors, Tony Elumelu, attributed the company’s improved performance to better operating conditions, effective management, and sustained shareholder support.
“I think the operating environment is gradually also improving. All of these culminated in the increase in performance that you have seen,” Elumelu said.
He added that shareholders are now receiving N2 per share in dividends compared to kobo-denominated payouts in previous years.
“More importantly, to our shareholders who have told us that they are tired of kobo kobo dividend, they are now happy to be receiving two naira per share. That is fantastic,” he stated.
Elumelu reiterated that the Group’s investments in electricity, hospitality and energy remain focused on driving economic growth and improving living standards across Nigeria.
The Federal Government recently approved a N3.3tn payment framework under the Presidential Power Sector Financial Reforms Programme to resolve longstanding debts accumulated between February 2015 and March 2025.
According to a statement issued by Bayo Onanuga, implementation of the repayment plan has already commenced, with 15 power plants signing settlement agreements valued at N2.3tn.
