Ibrahim Apekhade Yusuf in this report examines the policies and programmes of the Transcorp Power Plc, within the framework of the power generation industry vis-à-vis the implementation of the power sector roadmap of the federal government
At the centre of the problem of the nation’s power crisis has been the issue of distribution and generation of power; two major fulcrums in the power value chain, which is why the federal government took the bold initiative to privatise the sector eons ago
Journey of privatisation of power sector
Specifically, in 2013, the federal government privatised 11 electricity distribution companies (DISCOs) and six generating companies (GENCOs) while retaining 100% ownership of the Transmission Company of Nigeria (TCN) as part of a wider strategy to reform the sector and stimulate growth.
In spite of the privatisation initiative, the most challenging issue has been about financing the sector. According to available information, the nation’s power sector will require significant investment to achieve reliable power supply.
Industry operators estimate that the country will require as much as $100 billion in investment over the next 20 years to maintain current service.
Justification for power sector roadmap
In 2021, the federal government’s roadmap for the power sector focused on increasing electricity generation and improving the existing grid infrastructures.
This included a six-year partnership with Siemens AG for the Nigerian Electrification Roadmap (NER), which aimed to boost power capacity to 25,000 MW. The NER was structured in three phases, with Phase 1 (by 2021) focusing on quick impact projects to enhance the existing grid.
Enter Transcorp Power Plc
Of course, one of the major fallouts of the privatisation was the emergence of key sector players like the Transcorp Power Plc (TPP).
One of the subsidiaries of Africa’s leading and listed conglomerate, Transnational Corporation Plc, TPP was founded in 2012, and listed in 2024, precisely on March 4.
Those in the know say the company’s growth trajectory has been one of steady and incremental rise in the industry where it has been playing a leading role.
The company operates in the energy and power generation industry, focusing on electricity generation and distribution to support Nigeria’s growing energy demands.
The making of a behemoth
The company is the successor company from the merger of Transcorp Ughelli Power Limited and Ughelli Power Plc. Transcorp Ughelli Power Limited was incorporated in Nigeria on 24 September 2012 under the Companies and Allied Matters Act, of Nigeria as a private limited liability company for the purpose of acquiring 100% shareholding in Ughelli Power Plc from the Federal Government of Nigeria on 1 November 2013.
Subsequently, on 1 October 2015, Transcorp Ughelli Power Limited merged with its subsidiary, Ughelli Power Plc with a resultant change in name to Transcorp Power Limited, and cancellation of the share capital of Ughelli Power Plc.
On 19 December 2023, the company held an Extra ordinary General Meeting (EGM) and passed a resolution to convert the company from a private limited liability company to a public limited liability company, and the consequent change of name from Transcorp Power Limited to Transcorp Power Plc on 10 January 2024.
At the same meeting, the Company increased its share capital from ₦42,733,641.50 divided into 85,467,283 ordinary shares of ₦0.50 each to ₦3,750,000,000.00 divided into 7,500,000,000 ordinary shares of ₦0.50 each by the creation of an additional 7,414,532,717 ordinary shares of ₦0.50 each.
Read Also: Transcorp Power targets 25% of Nigeria’s electricity generation
It was also approved that the shares of the company be listed on the main Board of the Nigerian Exchange Limited (NGX).
Transcorp Power Plc (TPP) operates with a combined installed capacity of approximately 1,000 MW, accounting for 7.14% of Nigeria’s total installed capacity.
The power plant primarily uses gas, ensuring sustainable, reliable and efficient electricity generation.
Transcorp Power Plc is a gas-fired open cycle thermal power plant located in Ughelli, Delta State. It is the largest fossil-fuel-based power-generating station in the country. The plant has an installed capacity of 972 MW and can generate 2,500 GWh of electricity annually.
The power plant was built in four phases and designated as Delta I o Delta IV. Delta I which has been decommissioned had an installed capacity of 2X36MW or 72MW from two Stal-Laval gas turbines. Delta II has an installed capacity of 150MW from 6 X 25MW Hitachi H-25 gas turbines. Delta III has an installed capacity of 150MW from 6 X 25MW Hitachi H-25 gas turbines.
Delta IV has an installed capacity of 600MW from 6 X 100MW GE frame 9E gas turbines.
Transcorp power plant uses natural gas supplied by Nigeria Gas Infrastructure Company (NGIC) as the primary fuel for power generation.
The plant is equipped with a hydrogen production plant that provides hydrogen at 99.9% purity for cooling of the generator and a demineralised water plant that supports the plant cooling water requirement. The Hydrogen plant works on the principle of water electrolysis.
Transcorp Power Plc is linked to the Nigerian national grid through two 330kV and three 132kV high voltage power transmission lines.
Transcorp Power prioritises operational excellence through regular maintenance and optimisation of its power plants.
Transcorp Power invests in capacity recovery and technology upgrades, contributing significantly to the national grid.
Transcorp Power Plc adheres to the regulations set by the Nigerian Electricity Regulatory Commission (NERC).
Its tariffs are approved under the Multi-Year Tariff Order (MYTO).
The TPP financial statements reflect robust performance with strong revenue and profitability.
For instance, the TPP Q1 2025 Annual Report highlights a significant 55% year-on-year increase in revenue, rising from ₦67.9 billion to ₦105.4 billion. This strong performance was primarily driven by an increased available capacity of 625MW compared to 500MW in Q1, 2024, despite the liquidity challenges in the sector, showcasing its commitment to closing the power supply gap in the country.
It is expedient to state that the GENCOS tariff is not linked to the Band tariff for DISCOs, which is determined separately based on the cost of distribution and retail services. The TPP continuously invests in upgrading its infrastructure and adopting new technologies. This commitment to innovation ensures that it remains at the forefront of the power generation industry.
TPP’s Corporate Social Responsibility (CSR) initiatives focus on education, skill acquisition, and environmental sustainability.
A fully owned and funded Transcorp Power Schools, Annual Community Development Projects, Skill Acquisition Programmes and Seed Funding, Bursary, and Employment Opportunities for community youths.
The company met the free float requirement as at 31 March 2025 with 576,732,716 shares (7.69%) valued at N210,449,768,068 as on that date.
How TPP is bridging the power supply gap in Nigeria
In a view to mitigate the challenges experienced in the power sector in Nigeria, subsidiaries of leading conglomerate Transnational Corporation Plc (Transcorp) – Transcorp Power plc and TransAfam Power Limited have emerged as key players in the power sector in Nigeria through various initiatives, responsible for 20 percent of Nigeria’s power generation.
Transcorp Power PLC recently reintegrated two turbines into the national grid. The return of the turbines – GT9 and GT20, previously out for refurbishment, has increased Transcorp Power’s generating capacity to 625 MW.
Despite facing gas supply constraints, especially at its plant in Afam, Rivers State, Transcorp remains committed to increasing its power generation capabilities through strategic investments and partnerships aimed at ensuring long-term sustainability.
Transcorp Power’s recent listing on the Nigerian Exchange Limited has attracted new investors, diversified shareholder base, and enhanced capital-raising options. This development is expected to drive further investments in power generation and infrastructure, while returning value to shareholders.
Transcorp and its subsidiaries actively engage in corporate social responsibility projects that positively impact local communities, reinforcing its position as a responsible corporate citizen.
Important milestones
Transcorp Power Plc’s mission is to provide affordable, reliable, and sustainable electricity to power Nigeria’s economic growth. The company envisions becoming the leading electricity provider in Africa, leveraging innovation and operational efficiency.
To many observers, it was therefore not surprising when Transcorp Power Plc announced results for the first quarter ended March 31, 2025, the outlook showed that it was indeed something to cheer about.
The company recorded an impressive 55% year-on-year increase in revenue, rising from ₦67.9 billion to ₦105.4 billion.
This strong performance was primarily driven by an increased available capacity of 625MW compared to 500MW in Q1, 2024. This growth has been achieved notwithstanding the liquidity challenges in the sector, showcasing our commitment to closing the power supply gap in the country.
Profit before tax grew by 50%, from ₦28.8 billion in Q1, 2024 to ₦43.3 billion in Q1, 2025. This substantial growth reflects not only higher revenues but also continued improvements in cost efficiency and operational excellence.
Insider sources acknowledged that operational efficiency, strategic investments, and improved power generation capacity drove the company’s financial performance.
Notably, Transcorp completed the repayment of foreign currency loans, reducing its net finance cost by 45%.
Dr Owen Omogiafo, President/Group CEO of Transcorp, stated, “Despite the challenging macroeconomic environment, we have consistently recorded impressive growth across all indices. We remain committed to improving lives and transforming Africa’s power sector.”
While Transcorp’s success suggests that Nigeria’s power sector can be profitable, industry experts warn that broader sector growth remains unlikely without resolving the debt crisis, tariff shortfalls, and infrastructure deficiencies.
Nigeria’s power sector sits at a crossroads. While companies like Transcorp thrive, widespread debt, poor financial planning, and policy gaps stifle sector-wide progress.
While commending the good fortunes of the company, the Managing Director/CEO of Transcorp Power Plc, Peter Ikenga revealed that it delivered a strong performance in Q1 2025, a development which reflects disciplined execution, reliable operations, and unwavering focus on efficiency.
“Despite the challenges impacting the sector, we continue to optimise our generating capacity from 500MW in Q1 2024 to 625MW in Q1 2025. We remain firmly committed to delivering long-term value for our shareholders while powering progress across Africa.”
Future projections
Expectedly, as part of a future forward projection, Transcorp Power Plc has announced plans to generate 25 percent of the electricity consumed in Nigeria in the near future, up from its current share of 12 percent.
Chairman of the Board of Directors, Mr. Emmanuel Nnorom, made this disclosure during the company’s Annual General Meeting (AGM), in Abuja recently.
“The power we’re generating today, our target is 25 percent of the power consumed in Nigeria. We are presently at about 12 percent of power consumed in Nigeria. And the plan this year is to be at 15 percent. Our target is to be at 25 percent,” Nnorom said.
He also noted the company’s focus on improving gas supply and infrastructure to support industrial growth.
Speaking on the company’s performance, Nnorom revealed: “In the midst of macroeconomic challenges, in 2024, we achieved an impressive growth in revenue of 115%, rising from N142.1 billion in 2023 to N305.9 billion in 2024. Operating profit for the year under review is N114.03 billion compared to N64.63 billion in 2023. Profit before tax increased from N52.8 billion in 2023 to N113.3 billion in 2024. Profit after tax increased by 165% from N30.2 billion in FY 2023 to N80.01 billion in FY 2024.”
Nnorom highlighted the company’s improved financial stability, noting that in 2024, Transcorp Power fully repaid its foreign currency acquisition loan of $215 million taken in 2014. With the complete repayment of the loan, the company’s gearing ratio dropped from 64.48 percent in 2023 to 29.70 percent in 2024.
“The repayment of our USD loan has significantly strengthened our financial position, enabling us to pursue more growth opportunities,” he stated.
The company was listed on the Main Board of the Nigerian Exchange (NGX) on March 4, 2024, with an initial market capitalisation of N1.80 trillion, which increased to N2.70 trillion by December 31, 2024.
In terms of dividends, Nnorom said, “In line with our corporate commitment to provide enduring value to our esteemed shareholders, the Board of Directors recommended and paid an interim dividend of N1.50k per ordinary share in July 2024. The Board has now recommended a full dividend of N5 per share, comprising the interim dividend of N1.50k and a final dividend of N3.50k per share, for approval at the 12th AGM. This brings the total dividend payout to N37.5 billion.”
During the year, Transcorp Power recovered an additional 125MW of capacity, increasing its available capacity from 500MW at the start of the year to 625MW by the end of 2024. This improvement is expected to enhance the company’s power generation capacity in 2025.
“The power sector remains critical to Nigeria’s economic growth. While gas supply constraints and grid stability issues posed challenges, we proactively secured alternative fuel sources and invested in grid infrastructure to mitigate risks,” Nnorom explained.
He also noted that the Nigerian Electricity Supply Industry (NESI) is transitioning to a bilateral contract model between generation and distribution companies, replacing the current system where the Nigerian Bulk Electricity Trading Plc (NBET) acts as an intermediary.
“Transcorp Power is well-positioned to leverage this transition, having executed a Power Purchase Agreement (PPA) with Abuja Electricity Distribution Company and engaging in advanced discussions with other DisCos,” he said.
The company also strengthened its position in the regional electricity market through its role as an Executive Board member of the West Africa Power Pool (WAPP).
A key milestone in 2024 was expanding its partnership with Société Béninoise de Production d’Électricité (SBPE) in the Republic of Benin, increasing its contracted capacity from 130MW to 200MW. This expansion allows for higher electricity exports and reduces stranded capacity at its plants.
Looking ahead, the energy sector is expected to play a crucial role in Nigeria’s economic development, with increased investments in renewable energy projects such as solar and wind.
Expatiating, Ikenga also assured shareholders of the company’s positive outlook for 2025.
“We’re on the right trajectory. If you look at our records over the last six years, we’ve been on an upward trajectory. And I can assure you that we have better things to come in 2025, at the end of the year,” Ikenga stated.
He added that the company’s strategic priorities for the year included recovering plant capacity, improving operational excellence, and implementing rigorous maintenance plans. Other priorities included investing in human capital, optimising costs, and enhancing environmental, social, and governance (ESG) practices.
Ikenga reassured shareholders of the company’s long-term prospects. “You will smile by His grace. I just want to assure you that your company is in the right hands. We’re moving things in the right direction. With time, shareholders will continue to smile to the bank,” he said.
With the Nigerian government’s renewed commitment to increasing energy generation and a projected CAGR of 4.28% from 2025 to 2030, according to Market Intelligence and Advisory Firm, Mordor Intelligence, optimism is growing about the nation’s path to a stable power supply.
This is just as analysts have argued that Transcorp Plc continued investment in the power sector in Nigeria not only signals a promising trajectory for the sector, but it is an indication that Nigeria may finally be close to bridging its electricity gap, and this could drive substantial economic growth for our dear nation.
