Transnational Corporation Plc (Transcorp) has reached a significant milestone in resolving its long-standing power receivables, securing multi-billion naira debt settlement agreements with the Nigerian Bulk Electricity Trading Company (NBET) and the Presidential Committee on Power Sector Debt.
This breakthrough is expected to unlock substantial write-backs, strengthening Transcorp’s balance sheet and paving the way for increased investments in Nigeria’s energy sector.
The settlement agreements cover debts owed to Transcorp’s power subsidiaries, Transafam and Transcorp Power Ughelli, which supply approximately 15% of Nigeria’s total grid capacity.
This development comes after years of delayed payments, highlighting Transcorp’s resilience and commitment to maintaining stable power generation.
Owen Omogiafo, President and Group CEO of Transcorp, expressed confidence in the settlement, stating, “We have arrived at some conversations and agreement settlements with the presidential committee… We are quite confident that we will see a press down on the obligation.”
The Nigerian government has already raised over N500 billion to clear energy sector liabilities, with a signing ceremony held in Lagos.
This settlement is part of the Presidential Power Sector Debt Reduction Programme, aimed at addressing legacy debts and restoring liquidity in the energy sector.
Transcorp plans to utilize the recovered funds to expand its power generation capacity, targeting 760MW by the end of 2026 and supporting record dividends for shareholders.
