Transcorp Group Targets Power Expansion Amid Cost Surge

Transcorp Group has said it is targeting power expansion amid cost surge, adding that its power subsidiary, Transcorp Power Plc, maintained its growth momentum with a 38 per cent increase in revenue, supported by an improvement in average generation capacity to 420 megawatts (MW), from 341 MW achieved in the previous year.

Speaking at the Investors’ Conference Call, which was held virtually, the Power Company’s chief executive officer (CEO), Peter Ikenga, said the Group plans to raise its power generation capacity to about 750 MW by 2026 and sustain efficiency through asset optimisation and digital innovation in its hospitality operations. While acknowledging the favourable business environment, Ikenga said, it remains cautious due to the foreign exchange volatility, regulatory changes, and receivables exposure in the power market.

The CEO noted that his firm was positioning itself for future growth under the Electricity Act 2023 and the federal government’s Decade of Gas initiative, which it anticipated would unlock additional opportunities in the energy value chain.

Earlier, the Group chairman, Transcorp Group, Mr Tony Elumelu, disclosed that its revenue base was driven by stronger performance in its power and hospitality businesses, as it reported a 39 per cent growth in gross revenue, reaching N413.44 billion for the nine months ended September 30, 2025.

According to the company’s unaudited financial presentation to investors and analysts, profit before tax rose by 18 per cent to N124.52 billion, while profit after tax climbed 20 per cent to N91.41 billion, compared with N75.91 billion recorded in the same period of 2024.

Despite the strong ranking, Transcorp noted that inflationary pressures and rising operating expenses continue to test margins, with its operating expenses jumping 64 per cent year-on-year to N61.3 billion, largely driven by general inflation, expansion costs, and impairment on receivables from the Nigerian Bulk Electricity Trading Plc (NBET).