Nigerian executive Owen Omogiafo says government’s commitment to energy debt promises gains for Transcorp

Nigerian executive Owen Omogiafo said the Federal Government’s plan to settle legacy energy debt could strengthen Transnational Corporation Plc (Transcorp), Nigeria’s largest listed conglomerate. Speaking during a high-level investors’ call on Tuesday, Omogiafo said resolving these debts would improve cash flow and operational stability, allowing the company to invest further in power and energy infrastructure, supporting growth across key sectors.

Transcorp posts strong growth, expansion ahead

During the call, Omogiafo highlighted that Transcorp recorded an 83 percent year-on-year growth in revenue and a 31 percent rise in profit, demonstrating resilience across its diversified operations. “The government has shown unprecedented commitment to clearing the energy sector’s mounting liabilities,” Omogiafo said, noting that this could result in significant write-backs on the group’s balance sheet and directly boost the conglomerate’s already strong N179.5 billion profit before tax ($131.3 million).

Despite these historical receivables, Transcorp’s power subsidiaries, which supply roughly 15 percent of Nigeria’s grid, maintained high operational efficiency. Peter Ikenga, MD/CEO of Transcorp Power Plc, said, “We recognize the importance of consistent and reliable power generation. Even when gas producers undergo maintenance, our operations are only slightly impacted.” With a 2026 target of 760MW average available capacity, settling the government’s obligations will provide the liquidity to fund further expansion.

Transcorp maintains focus on shareholder value

Transcorp remains committed to protecting shareholders and sustaining profitability across its power, hospitality, and energy investments. Omogiafo told investors, “Any impairment you see in our books today will be written back once the government finalises these payments. We are built to last and will deliver beyond expectations.” She added that disciplined execution and the strength of its diversified portfolio underpinned the year’s results.

For the year ended Dec. 31, 2025, Transcorp reported profit after tax of N135.9 billion ($100.2 million), a 44 percent rise from N94.1 billion ($69.3 million) in 2024. Revenue grew 33 percent to N544.1 billion ($402.8 million), up from N407.9 billion ($302 million), supported by strong performance in both power and hospitality. The group’s power business led the gains, generating N483.97 billion ($358.2 million), a 38 percent increase driven by higher output and steadier gas supply. Transcorp Hotels Plc mirrored that growth, posting N97.04 billion ($71.8 million), fueled by increased demand for rooms, events, and premium guest services.

The board approves N20.3 billion dividend

The group’s total assets crossed N1 trillion ($740 million), up from N751.5 billion ($554.4 million), while shareholders’ funds grew 47 percent to N363.4 billion ($268.1 million). Retained earnings increased from N105.55 billion ($77.9 million) to N181.18 billion ($133.7 million). Reflecting these gains, the board recommended a full-year dividend of N2 ($0.00147) per share, totaling N20.3 billion, double the prior year, including an interim payout of N0.4 ($0.000294) per share already distributed and a proposed final dividend of N1.6 ($0.00118).