Tinubu Govt Begins Repayment of N3.3tn Power Debt, Ignites Historic Turnaround in Nigeria’s Electricity Sector

In a landmark move for Nigeria’s troubled electricity sector, the Federal Government has commenced repayment of longstanding debts owed to power generation companies (GenCos), according to Owen Omogiafo, President and Group CEO of Transnational Corporation Plc (Transcorp).

Describing the development as the “greatest progress yet” in resolving the industry’s deep liquidity crisis, Omogiafo disclosed that settlement contracts have been signed for two major power plants under the Transcorp Group.

“For Transafam, they have started the payments. And for Transcorp Power, they will start sometime this year,” Omogiafo said on the sidelines of the company’s 20th Annual General Meeting in Abuja on Friday.

She specifically commended President Bola Tinubu’s administration for tackling the legacy debt estimated at about N3.3 trillion owed to GenCos and gas suppliers a burden that has long choked the Nigerian Electricity Supply Industry (NESI).

The repayment marks early implementation of a government intervention approved under the Presidential Power Sector Financial Reforms Programme, targeting debts accumulated between February 2015 and March 2025.

According to a statement by Bayo Onanuga, Special Adviser to the President on Information and Strategy, fifteen power plants have already signed settlement agreements worth N2.3 trillion.

Despite persistent challenges including gas supply constraints and transmission infrastructure gaps Omogiafo noted that Transcorp has continued to deliver strong financial performance.

The Group’s 2025 financial results showed a 33% revenue increase to N544 billion, with profit after tax leaping 44% to N135.9 billion. Total assets rose 33% to about N1 trillion.

Transcorp Power Plc increased its average available capacity to 550 megawatts (from 477MW in 2024), while Transafam Power Limited raised available capacity to 348MW (from 250MW).

In the hospitality arm, Transcorp Hotels Plc saw strong demand, boosted by a new 5,000-seat event centre in Abuja.

Shareholders are now reaping rewards: the Board proposed a total dividend of N2.00 per share for 2025 a far cry from the “kobo kobo” dividends of the past.

“They are now happy to be receiving two naira per share. That is fantastic,” said Tony Elumelu, Transcorp’s Board Chairman, who credited improved operating conditions and effective management for the turnaround.

Omogiafo struck an optimistic tone for investors across the continent: “There will always be challenges… but it’s what you do with those challenges and how you create opportunities out of them.”