Transnational Corporation Plc (Transcorp) has announced a major breakthrough in addressing longstanding liquidity constraints within its power business, revealing that it has reached strategic settlement agreements over its multi-billion naira receivables.
Speaking during a high-level investors' call after the release of the Group's 2025 financial results on Tuesday, the company's leadership disclosed that an extensive reconciliation process with the Nigeria Bulk Electricity Trading Company (NBET) and the Presidential Committee has positioned the group for significant debt recovery.
The president/Group CEO of Transcorp Plc, Owen Omogiafo, assured investors that the company remains focused on safeguarding shareholder value while ensuring that legacy debts do not erode returns.
"We have arrived at some conversations and agreement settlements with the presidential committee as it relates to the debt owed to Transafam, and we continue to speak with them regarding Transcorp Power Ughelli. We are quite confident that we will see a press down on the obligation," she said.
Keep up with the latest headlines on WhatsApp | LinkedIn
Omogiafo further noted that the federal government has shown strong commitment to clearing the sector's growing liabilities, adding that the first tranche of funding--reportedly exceeding N500 billion--has already been secured through a signing ceremony in Lagos.
She explained that the development is expected to result in significant write-backs on the company's balance sheet, further strengthening the group's N179.50 billion profit before tax.
"What I would like to highlight is that despite this huge debt owed to us, please take a look at our group. We have continued to operate and maintain our turbines, drive our maintenance plan, and improve staff welfare. We have reconciled the numbers that are owed, and those numbers have been signed by us and NBET. This is the highest progress that has been made," she added.
Despite the burden of outstanding receivables, Transcorp's power subsidiaries--responsible for about 15 per cent of Nigeria's grid capacity--have sustained optimal performance levels.
The managing director/CEO of Transcorp Power Plc, Peter Ikenga, said the company's ability to maintain steady power generation in spite of delayed payments reflects its operational resilience and diversified gas supply strategy.
He stated, "We recognise the value of ensuring consistent, reliable, and stable power generation. We are consistently working with various gas producers and transporters to ensure that even when they undergo maintenance programmes, we are only slightly impacted."
Looking ahead, the group is targeting an average available capacity of 760MW for Transcorp Power by the end of 2026, with the anticipated inflow from recovered debts expected to support expansion plans.
The settlement is also expected to reduce risk within the group's energy portfolio and boost investor confidence among its over 311,000 shareholders, many of whom anticipate stronger dividend payouts.
"We want to again thank you for your continued interest in Transcorp Group. We are keen to fix power in our country, and power must be fixed. Any impairment you see in our books today are monies that will be written back once this is finalised. We are built to last, and we will deliver even beyond," Omogiafo added.
2027: APC Remains Party To Beat, Says Nasarawa Speaker
By Oyindamola Olawuyi
The Speaker of the Nasarawa State House of Assembly, Dr. Danladi Jatau, has said the All Progressives Congress (APC) remains the party to beat at all levels in the upcoming 2027 general election.
Jatau made the remark on Tuesday in Lafia while hosting over 20 Peoples Democratic Party (PDP) stakeholders of Eggon extraction who are set to defect to the APC.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
He assured both new and existing members of equal opportunities and rights within the party. Expressing satisfaction with their decision, he described it as timely and well-informed.
"I will inform the governor and the party chairman of their move, after which they will be received officially," Jatau said, describing the defections as another significant gain and victory for the ruling party in the state.
He also called on party members to maintain loyalty, unity, and teamwork to ensure a landslide victory in 2027. The speaker urged residents to continue praying for and supporting the administration of President Bola Tinubu and Governor Abdullahi Sule to succeed.
Earlier, the leader of the defecting team, Alhaji Abubakar Company, explained that their decision to switch allegiance was motivated by the development and quality leadership of Governor Sule and Speaker Jatau. He added that they would add value to the party and help ensure its victory beyond 2027.
