Transcorp Plc confirmed that the Federal Government has started settling part of the long-standing debts owed to electricity generation companies, describing the move as a major step toward improving confidence in Nigeria’s power sector.

President and Group Chief Executive Officer of Transcorp Plc, Owen Omogiafo, disclosed this on Friday during the company’s Annual General Meeting held in Abuja.

Omogiafo commended the administration of President Bola Ahmed Tinubu for making progress in addressing the historical debts owed to electricity sector operators.

According to her, settlement reconciliation agreements covering outstanding debts have already been signed for Transcorp Power Plc and Transafam Power Limited, while payment processing for Transafam has already commenced.

She added that payments owed to Transcorp Power Plc are expected to begin later this year.

Nigeria’s cumulative legacy debts owed to generation companies and gas suppliers currently stand at about ₦6.8 trillion as of March 2026. The debts accumulated largely between 2015 and 2025 due to unpaid invoices and subsidy obligations in the electricity market.

President Bola Ahmed Tinubu had earlier approved a ₦3.3 trillion settlement plan to reduce the burden of outstanding obligations owed to power generation companies and gas suppliers.

Omogiafo said the government’s acknowledgement of the debt crisis facing the power sector marks a major improvement over previous years, when operators struggled to secure official recognition of the problem.

She also welcomed recent leadership changes within the power sector, particularly the appointment of a Special Adviser on Power, which she said reflects stronger government attention on the electricity industry.

While expressing optimism about developments in the sector, Omogiafo maintained that more reforms and improvements are still required to stabilise electricity supply and support operators.

She also disclosed that the planned Transcorp Hilton Ikoyi project in Lagos remains one of the company’s top priorities.

According to her, the proposed hotel project will be a 315-room luxury facility expected to be completed before 2030.

Omogiafo linked the project timeline to her personal milestone, saying she hopes to celebrate her 50th birthday at the completed hotel in 2030.

Speaking on the company’s financial performance, Chairman of Transcorp Plc, Tony Elumelu, said creating sustainable long-term value for shareholders remains central to the company’s operations.

Elumelu stated that despite economic challenges and market pressures in 2025, the group remained focused on prudent capital allocation, operational efficiency and strong corporate governance.

According to him, the company’s market capitalisation closed the year at ₦4.51 trillion amid broader market volatility and macroeconomic pressures.

He disclosed that two of the group’s subsidiaries independently recorded market capitalisations of ₦1.75 trillion and ₦2.3 trillion, respectively, reflecting what he described as significant unrealised value within the group’s portfolio.

Elumelu said the listed subsidiaries continued to make strong contributions to the Nigerian capital market and to strengthen investor confidence in the company’s long-term fundamentals.

He assured shareholders that dividend payments would not fall below the current year’s payout, stressing that the company remains committed to sustainable returns.

Revenue for the 2025 financial year rose by 33 per cent compared to the previous year, a performance Elumelu attributed to the efforts of the group leadership, subsidiary chief executives, executive management, board members and supportive shareholders.

Despite prevailing economic pressures, the group recorded gross earnings of ₦544 billion in 2025, compared with ₦408 billion in 2024.

Profit before tax increased by 31 per cent to ₦179.5 billion, while total assets rose to ₦1.002 trillion from ₦751 billion recorded in the previous year. Shareholders’ funds also increased by 47 per cent to ₦353 billion.

Elumelu explained that the strong performance was driven mainly by the power and hospitality businesses, supported by operational efficiencies, prudent financial management and improved utilisation of company assets.

Following the results, the Board of Directors recommended a total dividend payout of ₦2.00 per share.

The dividend consists of an interim dividend of 40 kobo paid in August 2025 and a final dividend of ₦1.60 per share approved at the company’s 20th Annual General Meeting. The total dividend payout amounts to over ₦20.3 billion.

Elumelu said the group recorded major operational and strategic milestones during the year across its power, hospitality and energy businesses.

According to him, the company intensified efforts to optimise key assets and strengthen investments in high-growth sectors.

Transcorp Power Plc maintained its position as one of the leading electricity generation companies in the country, recording growth across major operational and financial indicators.

Average available generation capacity at the Ughelli power plant increased from 477 megawatts in 2024 to 550 megawatts in 2025, representing a 15 per cent increase.

Peak available capacity during the year reached 625 megawatts.

Average electricity generation also increased from 332 megawatts to 391 megawatts, while peak generation rose to 553 megawatts, translating to 88.5 per cent utilisation.

Similarly, Transafam Power Limited increased its average available capacity from 250 megawatts to 348 megawatts, representing a 39 per cent increase.

Average generation at Transafam also rose significantly from 53 megawatts in 2024 to 102 megawatts in 2025.

Elumelu said these achievements were recorded despite persistent gas supply shortages and transmission evacuation constraints within the national grid.

He noted that electricity evacuation challenges worsened during the year following repeated vandalism of the Transmission Company of Nigeria’s infrastructure.

According to him, the company’s performance demonstrates operational resilience, disciplined plant management and commitment to sustaining generation growth despite difficult operating conditions.

Safety performance also remained strong during the year, with Transcorp Power Plc recording zero infractions while successfully achieving its “Goal Zero” safety target.

In the hospitality segment, Transcorp Hotels Plc recorded a historic annual revenue of about ₦97 billion.

The company also advanced plans for its 315-room five-star hotel project in Ikoyi, Lagos, which will include a lifestyle and relaxation centre.

Elumelu further disclosed that the dual-fuel burner project at Transcorp Hilton Abuja became fully operational during the year.

According to him, the project is delivering monthly cost savings of approximately ₦25 million while supporting environmental sustainability efforts.

He added that the hotel recycled more than 2,000 kilograms of materials during the year as part of its environmental management initiatives.

Operational efficiency within the group was also improved by relocating four trailer-mounted turbines from Transafam Power in Port Harcourt to Transcorp Power in Ughelli, ensuring better utilisation of existing assets.

“These achievements reflect our unwavering commitment to operational leadership, strategic growth, and sustainable value creation for all our stakeholders,” Elumelu told shareholders. (The Nation)

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