has confirmed that the Federal Government has started paying part of the long-standing debts owed to electricity generation companies, describing the move as a significant boost for confidence in Nigeria’s power sector.
Speaking during the company’s Annual General Meeting in Abuja on Friday, the President and Group Chief Executive Officer of Owen Omogiafo praised the administration of Bola Ahmed Tinubu for taking steps to address the huge backlog of debts owed to operators in the electricity industry.
According to her, reconciliation agreements covering outstanding payments have already been signed for Transcorp Power Plc and Transafam Power Limited. She revealed that payment processing for Transafam has already started, while payments to Transcorp Power are expected to commence later this year.
Nigeria’s outstanding debts to power generation companies and gas suppliers are estimated at about ₦6.8 trillion as of March 2026. The liabilities accumulated over several years due to unpaid invoices and subsidy obligations within the electricity market.
Earlier, President Tinubu approved a ₦3.3 trillion settlement plan aimed at easing the burden on generation companies and gas suppliers struggling with unpaid debts.
Omogiafo noted that the government’s recognition of the debt crisis represents a major shift from previous years when operators battled to get authorities to acknowledge the scale of the problem.
She also welcomed recent changes in the power sector leadership, especially the appointment of a Special Adviser on Power, describing it as a sign of stronger government commitment to the electricity industry.
Despite the positive developments, she stressed that more reforms are still needed to stabilise electricity supply and strengthen the sector.
On the company’s hospitality business, Omogiafo disclosed that the planned Transcorp Hilton Ikoyi project in Lagos remains one of the group’s priority investments. According to her, the 315-room luxury hotel is expected to be completed before 2030.
She jokingly added that she hopes to celebrate her 50th birthday at the completed hotel in 2030.
Chairman of Transcorp Plc, Tony Elumelu, said the company remains focused on delivering long-term value for shareholders despite economic challenges and market pressures.
Elumelu revealed that the group’s market capitalisation closed the 2025 financial year at ₦4.51 trillion, while two of its subsidiaries independently recorded market values of ₦1.75 trillion and ₦2.3 trillion respectively.
According to him, the company’s revenue rose by 33 per cent in 2025, with gross earnings increasing from ₦408 billion in 2024 to ₦544 billion. Profit before tax also climbed by 31 per cent to ₦179.5 billion, while total assets grew to over ₦1 trillion.
He attributed the performance largely to the group’s power and hospitality businesses, improved operational efficiency, and prudent financial management.
The board also approved a total dividend payout of ₦2.00 per share, amounting to over ₦20.3 billion for shareholders.
Elumelu added that Transcorp Power Plc improved its average available generation capacity from 477 megawatts in 2024 to 550 megawatts in 2025, while peak capacity reached 625 megawatts during the year.
Similarly, Transafam Power Limited increased its average available capacity from 250 megawatts to 348 megawatts, alongside significant growth in electricity generation output.
