By Oke Peter
Transcorp Plc has confirmed that the Federal Government has commenced the settlement of long-standing “legacy debts” owed to electricity Generation Companies (GenCos), in a move expected to restore confidence in Nigeria’s struggling power sector.
The President and Group Chief Executive Officer of Transcorp Plc, Owen Omogiafo, disclosed this on Friday, May 8, 2026, during the company’s Annual General Meeting (AGM) held in Abuja.
Omogiafo commended the administration of President Bola Ahmed Tinubu for making progress in addressing the historic debt burden owed to power sector operators, noting that reconciliation agreements covering outstanding payments have already been signed for Transcorp Power Plc and Transafam Power Limited.
According to her, payment processing for Transafam Power has already commenced, while payments due to Transcorp Power Plc are expected to begin later in the year.
Nigeria’s cumulative legacy debts owed to GenCos and gas suppliers are estimated at about ₦6.8 trillion as of March 2026. The debts were largely accumulated between 2015 and 2025 due to unpaid invoices and subsidy-related obligations within the electricity market.
President Tinubu had earlier approved a ₦3.3 trillion settlement plan aimed at reducing the backlog of outstanding obligations owed to GenCos and gas suppliers.
President and Group Chief Executive Officer of Transcorp Plc, Owen Omogiafo
Omogiafo described the government’s acknowledgement of the debt crisis as a major improvement over previous years, when operators struggled to secure official recognition of the problem. She also welcomed recent leadership changes in the sector, particularly the appointment of a Special Adviser on Power, which she said signals stronger government attention to the industry.
While expressing optimism, she stressed that more reforms are still required to stabilise electricity supply and improve market sustainability.
In his remarks at the AGM, Chairman of Transcorp Plc, Tony Elumelu, highlighted the group’s financial performance, stating that the company remained focused on long-term shareholder value through prudent capital allocation, operational efficiency and strong corporate governance.
Despite economic challenges in 2025, Transcorp recorded gross earnings of ₦544 billion, up from ₦408 billion in 2024.
Elumelu said Transcorp Power Plc maintained its position as one of Nigeria’s leading GenCos, with average available generation capacity at its Ughelli power plant in Delta State rising from 477 megawatts (MW) in 2024 to 550MW in 2025, representing a 15 percent increase. Peak available capacity reached 625MW during the year.
Average electricity generation also rose from 332MW to 391MW, while peak generation climbed to 553MW, translating to an 88.5 percent utilisation rate.
Similarly, Transafam Power Limited increased its average available capacity from 250MW to 348MW, a 39 percent rise, while its average generation grew from 53MW in 2024 to 102MW in 2025.
Elumelu noted that the improvements were achieved despite persistent gas supply shortages and constraints in evacuating power due to transmission limitations. He added that vandalism of critical Transmission Company of Nigeria (TCN) infrastructure further worsened evacuation challenges during the period.
