FG Initiates Repayment of Power Sector Debts

The Federal Government of Nigeria has begun repaying long-standing debts owed to power generation companies, as stated by Owen Omogiafo, the CEO of Transcorp Power Plc. During an interview at the company's 20th Annual General Meeting in Abuja, Omogiafo described this development as a significant step towards resolving liquidity challenges in Nigeria's electricity sector.

She disclosed that Transcorp Power has signed a settlement agreement with Transafam Power, which will initiate payments this year. Omogiafo commended President Bola Tinubu for making substantial progress regarding the historical debt issue, which totals approximately N3.3 trillion owed to generation companies and gas suppliers.

Despite ongoing challenges, including gas supply constraints and transmission infrastructure gaps, Transcorp Power has shown strong performance, with a reported 33% increase in revenue to N544 billion for the 2025 financial year. The company also recorded a profit before tax of N179.5 billion, reflecting improved operational efficiency.

The board proposed a total dividend of N2.00 per share for the 2025 financial year.