Federal Government initiates settlement of electricity bills, according to Transcorp chief

n n

The President/Group Chief Executive Officer of Transnational Corporation Plc, Owen Omogiafo, has said the Federal Government has commenced repayment of longstanding debts owed to power generation companies, describing the move as the most significant progress yet in resolving liquidity challenges in Nigeria’s electricity sector.

n

Omogiafo disclosed this in an interview with journalists on the sidelines of the company’s 20th Annual General Meeting held in Abuja on Friday.

n

“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.

n

She added, “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.”

n

The development signals early implementation of the Federal Government’s intervention to clear legacy debts, finalised at about N3.3tn owed to generation companies and gas suppliers, a longstanding issue that has constrained liquidity across the Nigerian Electricity Supply Industry.

n

Omogiafo noted that despite persistent challenges in the sector, including gas supply constraints and transmission infrastructure gaps, the Group has continued to deliver strong performance.

n

“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 said.

n

She stressed that the company remains focused on managing these constraints while leveraging opportunities within the sector. “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 added.

n

The Transcorp CEO also expressed optimism that recent policy actions and leadership changes in the power sector would improve investor confidence. She further highlighted the Group’s diversified operations, noting that investments in power and hospitality continue to drive growth despite macroeconomic pressures.

n

On shareholder returns, Omogiafo said the company has recorded a significant transformation over the years, moving from kobo-denominated dividends to stronger payouts.

n

“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.

n

Financial results presented at the meeting showed that the Group recorded a 33 per cent increase in revenue to N544bn in the 2025 financial year, driven by growth in its power and hospitality businesses.

n

Profit before tax rose by 31 per cent to N179.5bn, while profit after tax grew by 44 per cent to N135.9bn, reflecting improved operational efficiency and stronger earnings.

n

Total assets increased by 33 per cent to about N1tn from N751bn in 2024, while shareholders’ funds rose by 47 per cent to N353bn, indicating stronger capitalisation and investor confidence.

n

The Board also proposed a total dividend 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 a total payout of over N20.32bn.

n

Operationally, the Group’s power business recorded improvements, with Transcorp Power Plc increasing its average available capacity to 550 megawatts from 477MW in 2024, while peak capacity rose to 625MW. Average generation also increased to 391MW from 332MW.

n

Similarly, Transafam Power Limited increased its available capacity to 348MW from 250MW and improved average generation to 102MW, reflecting ongoing asset optimisation and improved gas supply.

n

In the hospitality segment, Transcorp Hotels Plc delivered a strong performance, supported by increased demand and the addition of a 5,000-seat event centre in Abuja, which has strengthened its position in Nigeria’s meetings and conferences market.

n

Earlier, the Chairman of the Board of Directors, Tony Elumelu, attributed the Group’s performance to improved 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,” he said.

n

He added that the company’s profit grew by over 30 per cent during the year, while shareholders are now earning N2 per share in dividends, compared to kobo 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,” Elumelu said.

n

He reiterated that the Group’s investments in electricity, hospitality, and energy are aimed at driving economic development and improving living standards.

n

The PUNCH earlier reported that President Bola Tinubu approved a N3.3tn payment plan aimed at resolving long-standing debts in Nigeria’s power sector and boosting the reliability of electricity supply.

n

The plan addressed legacy debts accumulated between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme. Following a comprehensive review, the government agreed on N3.3tn as a full and final settlement, ensuring transparency and fairness.

n

A statement issued by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, stated that implementation of the repayment plan has already begun, with fifteen power plants already signed settlement agreements totalling N2.3tn.

n n