The President and Group Chief Executive Officer of Transnational Corporation Plc, Owen Omogiafo, says the Federal Government has commenced repayment of longstanding debts owed to power generation companies.

Omogiafo described the development as the most significant progress so far in addressing liquidity challenges in Nigeria’s electricity sector.

She disclosed this while speaking with journalists on the sidelines of the company’s 20th Annual General Meeting held in Abuja on Friday.

According to her, Transafam Power has already begun receiving payments, while Transcorp Power is expected to start receiving payments later this year.

“For us in Transcorp Power and Transafam, we have actually signed our settlement reconciliation contracts. For Transafam, they started the payments. And for Transcorp Power, they will start sometime this year,” she said.

“So first of all, let me start by commending the Federal Government under President Bola Tinubu. This is the greatest progress we have made as it relates to dealing with the historical debt.”

The repayment forms part of the Federal Government’s intervention to clear legacy debts estimated at about N3.3tn owed to generation companies and gas suppliers, a challenge that has affected liquidity across the Nigerian Electricity Supply Industry.

Omogiafo noted that despite persistent challenges such as gas supply constraints and transmission infrastructure gaps, the company continued to record strong performance.

“It’s common knowledge about the challenges the power sector is facing. We deal with the gas issues and the transmission infrastructure issues, but despite the challenges, we were able to produce the kind of results that we have produced,” she said.

She added that the company remained focused on turning challenges into opportunities within the sector.

“There will always be challenges. That’s just the reality. But it’s what you do with those challenges and how you create opportunities out of them,” she stated.

Omogiafo also expressed optimism that recent policy actions and leadership changes in the power sector would boost investor confidence.

She highlighted the Group’s diversified investments in power and hospitality as major drivers of growth despite prevailing macroeconomic pressures.

On shareholder returns, she said the company had moved from paying kobo-denominated dividends to stronger payouts.

“Once upon a time, Transcorp was paying two kobo. Today we are paying dividends in naira. We are creating sustainable value and we can’t pay less than what we’re paying today,” she said.

Financial results presented at the AGM showed that the Group recorded a 33 per cent increase in revenue to N544bn in the 2025 financial year.

Profit before tax rose by 31 per cent to N179.5bn, while profit after tax increased by 44 per cent to N135.9bn.

Total assets also grew by 33 per cent to about N1tn from N751bn in 2024, while shareholders’ funds rose by 47 per cent to N353bn.

The Board proposed a total dividend of N2.00 per share for the 2025 financial year, comprising an interim dividend of 40 kobo and a final dividend of N1.60, amounting to a total payout of over N20.32bn.

Operationally, Transcorp Power Plc increased its average available capacity to 550 megawatts from 477MW in 2024, while peak capacity rose to 625MW.

Similarly, Transafam Power Limited improved its available capacity to 348MW from 250MW and increased average generation to 102MW.

In the hospitality segment, Transcorp Hotels Plc recorded improved performance, supported by increased demand and the addition of a 5,000-seat event centre in Abuja.

Earlier, Chairman of the Board, Tony Elumelu, attributed the Group’s performance to improved operating conditions, effective management and sustained shareholder support.

“I think the operating environment is gradually improving. All of these culminated in the increase in performance that you have seen,” he said.

Elumelu noted that shareholders were now receiving N2 per share in dividends compared to previous kobo payouts.

“More importantly, to our shareholders who have told us that they are tired of kobo kobo dividend, they are now happy to be receiving two naira per share. That is fantastic,” he added.

President Bola Tinubu had earlier approved a N3.3tn repayment plan aimed at resolving longstanding debts in the power sector and improving electricity supply nationwide.

According to a statement by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, implementation of the repayment plan has already commenced, with 15 power plants signing settlement agreements worth N2.3tn.