Transcorp Power has announced plans to increase its contribution to Nigeria’s total power generation to 25 per cent as part of an ambitious expansion drive.
The announcement was made by the company’s chairman, Emmanuel Nnorom, during its 12th Annual General Meeting on Tuesday in Abuja. Currently, Transcorp Power contributes 12% of the nation’s electricity supply, but it is positioning itself to significantly scale up its generation capacity in the coming years.
“We have major investments we are going to make in the year. Our plan is to contribute 25 percent of power generation in the country,” Nnorom said.
According to Nnorom, the company is targeting a 15 per cent contribution by 2025 as the first step toward achieving the long-term goal of 25 per cent. This move aligns with the company’s strategy to enhance energy availability in Nigeria and support economic growth through reliable power generation. The expansion plan is expected to involve upgrading existing infrastructure, increasing generation capacity, and potentially investing in new power projects.
With Nigeria facing persistent electricity challenges, Transcorp Power’s expansion is seen as a crucial development in addressing the country’s energy deficit. The company’s commitment to increasing generation capacity underscores its role as a key player in the power sector. If successful, this initiative could lead to improved electricity supply for businesses and households, contributing to national development and industrialisation.
Shareholders at the AGM approved the board’s proposal for the sharing of a full dividend of N5 comprising the interim dividend of N1.50k and a final dividend of N3.50k per share being a total dividend of N37.5 billion.
The board chairman also expressed concern over the N293bn unpaid funds by the Nigerian Bulk Electricity Trading (NBET) for the electricity supplied to it by the generating arm of Transcorp Power, which he said is affecting the company’s operations. “N293 billion sitting somewhere is a bit stressful. It also affects gas supply, “ he said while fielding questions from the shareholders at The meeting. He however said “We are working to ensure it’s resolved.”
Managing director of Transcorp Power Peter Ikenga allayed fears raised by some shareholders, stating that despite the macroeconomic challenges and increase in impairments, the company is in a good position to achieve the set targets. “We are on the right trajectory,” the MD said, adding “Your company is in the right hands.”
The company recorded impressive performance in 2024. In the year under review, Transcorp Power achieved a growth in revenue of 115 per cent, rising from N142.1 billion in 2023 to N305.9bn in 2024. Operating profit for the year under review is N114.03bn compared to N64.63 billion in 2023. Profit before tax increased from N528 billion in 2023 to N113.3bn in 2024. Profit after tax increased by 165 per cent from N30.2 billion in FY 2023 to N80.01 billion in FY 2024.
The chairman said “the financial performance reflects our unwavering commitment to our shareholders and stakeholders. We remain steadfast in our pursuit of value creation and assure our investors of continued robust returns.”
He announced that in the year, the company fully paid down its FX acquisition loan from $215 million in 2014. Following the complete repayment of its United States Dollar loan, the company’s gearing ratio reduced significantly from 64.48 per cent in FY 2023 to 29.70 per cent in FY 2024, indicating improved financial stability.
In 2024, the company was listed on the main board of the Nigerian Exchange (NGX) on the 4th March 2024, at a market cap of N1.80 trillion which has grown by N2.70 trillion as of December 31st, 2024.
“In the year, in line with our strategic purpose of providing much needed power to Nigeria, we successfully recovered an additional 125MW capacity to our current generating capacity. This has further boosted our ability to generate more power in 2025 and create greater value for stakeholders,” he stated.
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