The President and Group Chief Executive Officer of Transnational Corporation Plc, Owen Omogiafo, has revealed that the Federal Government has started paying long-standing debts owed to electricity generation companies in Nigeria.
She described the development as one of the biggest breakthroughs in solving the financial problems affecting the country’s power sector for many years.
Speaking during the company’s 20th Annual General Meeting in Abuja, Omogiafo explained that both Transcorp Power Plc and Transafam Power Limited have already signed settlement agreements with the government.
According to her, payments have already started for Transafam, while Transcorp Power is expected to begin receiving payments later this year.
She praised the administration of President Bola Tinubu for taking action on the issue, noting that the repayment plan marks the most serious effort so far in addressing historical debts in the electricity industry.
The Federal Government recently approved a repayment arrangement covering about N3.3 trillion owed to power generation companies and gas suppliers. These debts, accumulated over several years, have created major financial difficulties across Nigeria’s electricity sector.
Despite the challenges facing the industry, Omogiafo said Transcorp has continued to achieve strong business results. She explained that problems such as unstable gas supply and weak transmission infrastructure still affect operations, but the company has managed to perform well through careful planning and management.
She stated that challenges are unavoidable in the power sector, but companies must find ways to turn those difficulties into opportunities for growth.
Omogiafo also expressed confidence that recent reforms and leadership changes in the electricity sector would encourage more investor confidence and improve the business environment.
She highlighted the company’s investments in power generation and hospitality as key drivers of its growth and profitability.
On shareholder returns, she said the company has experienced major improvement over the years. According to her, Transcorp has moved from paying shareholders dividends in kobo to paying stronger returns in naira.
Financial results presented at the meeting showed that the Group recorded a 33 percent increase in revenue, rising to N544 billion in the 2025 financial year.
Profit before tax increased by 31 percent to N179.5 billion, while profit after tax rose by 44 percent to N135.9 billion.
The company’s total assets also climbed to nearly N1 trillion, while shareholders’ funds increased significantly, showing stronger investor confidence and improved financial strength.
The Board proposed a total dividend payout of N2.00 per share for shareholders for the 2025 financial year. This includes an interim dividend of 40 kobo and a final dividend of N1.60 per share.
In the power sector, Transcorp Power Plc increased its available generation capacity from 477 megawatts in 2024 to 550 megawatts in 2025. Peak generation also improved to 625 megawatts.
Similarly, Transafam Power Limited improved its available capacity and electricity generation due to better gas supply and equipment optimisation.
The company’s hospitality business also recorded strong growth. Increased customer demand and the addition of a new 5,000-seat event centre in Abuja helped strengthen its position in Nigeria’s conference and events market.
Chairman of the Board, Tony Elumelu, credited the company’s strong performance to better operating conditions, effective management, and continued support from shareholders.
He noted that shareholders who once received dividends in kobo are now enjoying returns of N2 per share, describing it as a major achievement for the company and its investors.
