Transnational Corporation Plc has announced a major breakthrough in resolving long-standing liquidity challenges within its power business, confirming strategic settlement agreements over its multi-billion naira receivables.
The development was disclosed during a high-level investors’ call following the release of the Group’s 2025 financial results. According to the company, a detailed reconciliation process with the Nigeria Bulk Electricity Trading Company and a presidential committee has paved the way for significant debt recovery.
The President and Group CEO of Transcorp Plc, Owen Omogiafo, assured investors that the company is taking decisive steps to protect shareholder value.
“We have arrived at some conversations and agreement settlements with the presidential committee as it relates to the debt owed to Transafam, and we continue to speak with them regarding Transcorp Power Ughelli. We are quite confident that we will see a press down on the obligation,” she said.
Omogiafo also revealed that the Federal Government has shown strong commitment to addressing the power sector’s debt burden. She noted that the first tranche of funding—reportedly exceeding N500 billion—has already been raised following a signing ceremony in Lagos.
The anticipated recovery is expected to trigger substantial write-backs on the company’s balance sheet, strengthening its already solid financial performance, including a profit before tax of N179.50 billion.
Despite the heavy receivables, Transcorp’s power subsidiaries—responsible for about 15 percent of Nigeria’s electricity grid capacity—have maintained stable operations.
The Managing Director and CEO of Transcorp Power Plc, Peter Ikenga, highlighted the company’s resilience in sustaining power generation despite financial constraints.
“We recognise the value of ensuring consistent, reliable, and stable power generation. We are consistently working with various gas producers and transporters to ensure that even when they undergo maintenance programmes, we are only slightly impacted,” he said.
Looking ahead, the company is targeting an average available capacity of 760MW by the end of 2026. The resolution of these debts is expected to provide the liquidity needed to support expansion plans and improve operational capacity.
The settlement is also seen as a major confidence booster for the company’s over 311,000 shareholders, many of whom are anticipating stronger returns and record dividends.
Omogiafo reaffirmed the company’s long-term vision, stating that Transcorp remains committed to transforming Nigeria’s power sector and delivering sustained value.
