GenCos: Nigerian Government begins payment of power sector’s N3.3trn ‘legacy debts’ –Official

*Owen Omogiafo, President and Group Chief Executive Officer of Transcorp Plc, discloses the Federal Government of Nigeria has started settling long-standing ‘legacy debts’ owed to the electricity Generation Companies, stating the Transcorp Hilton Ikoyi, in Lagos, will be ready before 2030

Isola Moses | ConsumerConnect

As a decisive measure towards improving confidence in Nigeria’s much beleaguered electricity sector, Transcorp Plc has affirmed the Federal Government commenced settling part of the long-standing debts owed to the electricity Generation Companies (GenCos).

Owen Omogiafo, President and Group Chief Executive Officer (GCEO) of Transcorp Plc, disclosed this development Friday, May 8, 2026, during the company’s Annual General Meeting (AGM), held in Abuja, FCT.

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Omogiafo particularly commended the administration of President Bola Ahmed Tinubu for making considerable progress in addressing the historical debts owed to service operators in the power sector of Nigerian economy.

She also explained the settlement reconciliation agreements covering outstanding debts have already been signed for Transcorp Power Plc and Transafam Power Limited.

Likewise, payment processing for Transafam has already commenced, said the GCEO.

But payments owed to Transcorp Power Plc are expected to begin later this year.

ConsumerConnect gathered that the country’s cumulative legacy debts owed to the electricity Generation Companies and gas suppliers stand at about ₦6.8 trillion as of March 2026.

It is recalled that the debts accumulated largely between 2015 and 2025 due to unpaid invoices and subsidy obligations in the electricity market in the West African country.

Subsequently, President Tinubu approved a ₦3.3 trillion settlement plan to reduce the burden of outstanding obligations owed to power generation companies and gas suppliers in the sector.

Impact of government’s intervention in power sector

Recalling the relatively inclement operating environment in the electricity market, Omogiafo said the government’s acknowledgement of the debt crisis facing the power sector marked a major improvement over previous years, when operators struggled to secure official recognition of the problem.

The GCEO of Transcorp Plc welcomed recent leadership changes within the power sector, particularly the appointment of a Special Adviser on Power.

According to her, the development reflects stronger government attention on the electricity industry in Nigeria.

Expressing optimism about developments in the sector, Omogiafo as well maintained that more reforms and improvements are still required to stabilise electricity supply and support operators.

On Transcorp Hilton Ikoyi project

The Group Chief Executive of the conglomerate also disclosed that the proposed Transcorp Hilton Ikoyi project, in Lagos, is one of the company’s top priorities.

She noted that the proposed hotel project would be a 315-room luxury facility expected to be completed before 2030.

In his address at the AGM, Mr. Tony Elumelu, Chairman of Transcorp Plc, spoke on the company’s financial performance.

Elumelu said creating sustainable long-term value for the company’s shareholders had remained central to its operations.

He stated that despite economic challenges and market pressures in 2025, the group remained focused on prudent capital allocation, operational efficiency and strong corporate governance.

Despite prevailing economic pressures in the country, the Group yet recorded Gross Earnings of ₦544 billion 2025, compared with ₦408 billion 2024.

The Transcorp Group, Elumelu stated, also recorded major operational and strategic milestones during the year across its power, hospitality and energy businesses.

On market performance of Transcorp Power Plc

Elumelu said Transcorp Power Plc maintained its position as one of the leading electricity Generation Companies in Nigeria, recording growth across major operational and financial indicators.

According to him, average available generation capacity at the Ughelli power plant, in Delta State, South-South Nigeria, increased from 477 megawatts (MW) in 2024 to 550 megawatts in 2025, representing a 15 percent increase.

Peak available capacity during the year reached 625 megawatts, stated he.

The Group also disclosed the average electricity generation increased from 332 megawatts to 391 megawatts, while peak generation rose to 553 megawatts, translating to 88.5 percent utilisation.

Similarly, Transafam Power Limited increased its average available capacity from 250 megawatts to 348 megawatts, representing a 39 percent increase.

Average generation at Transafam also rose significantly from 53 megawatts in 2024 to 102 megawatts in 2025.

Elumelu noted those achievements were recorded in the industry despite persistent gas supply shortages and transmission evacuation constraints within the troubled national grid.

Electricity evacuation challenges as well worsened the last financial because of vandalism of the Transmission Company of Nigeria’s critical infrastructure.

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