The Federal Government has commenced repayment of longstanding debts owed to power generation companies under a N3.3 trillion settlement plan aimed at easing liquidity constraints in Nigeria’s electricity sector.
President and Group Chief Executive Officer of Transnational Corporation Plc, Owen Omogiafo, confirmed the development on Friday, May 8, 2026, in Abuja at the company’s 20th Annual General Meeting, describing it as a key milestone in resolving legacy obligations in the power industry.
She said settlement and reconciliation agreements had been signed with Transcorp Power Plc and Transafam Power Limited, with payments already underway in some cases and others expected to begin within the year.
“For Transafam, payments have started. For Transcorp Power, they will begin sometime this year,” she said, commending the Federal Government under President Bola Tinubu for the intervention.
Omogiafo said the move signals a turning point for the electricity market, which continues to face liquidity gaps, gas supply challenges, and transmission constraints.
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The repayment forms part of the Federal Government’s N3.3 trillion power sector debt programme covering obligations accrued between February 2015 and March 2025 under the Presidential Power Sector Financial Reforms Programme. About 15 power plants have already signed agreements worth around N2.3 trillion.
Despite sector challenges, she said Transcorp maintained strong performance, driven by operational efficiency.
Chairman Tony Elumelu said profitability rose by over 30 percent, adding that shareholders now receive stronger dividends.
Financial results showed revenue up 33 percent to N544 billion in 2025, profit before tax up 31 percent to N179.5 billion, and profit after tax up 44 percent to N135.9 billion.
Total assets rose to about N1 trillion from N751 billion in 2024, while shareholders’ funds grew 47 percent to N353 billion. The Board proposed a N2.00 per share dividend, totaling over N20.32 billion.
In operations, Transcorp Power increased average capacity to 550MW from 477MW, while Transafam rose to 348MW from 250MW. Transcorp Hotels also posted gains driven by stronger demand and its Abuja event centre.
The repayment plan is expected to ease sector liquidity pressures and improve power supply stability.