FG begins repayment of N3.3trn power sector debts, says Transcorp President 

The President and Group Chief Executive Officer of Transnational Corporation Plc, Owen Omogiafo, has revealed that the Federal Government has commenced repayment of N3.3 trillion longstanding debts owed to power generation companies.

Omogiafo described the move as the most significant progress yet in resolving liquidity challenges in Nigeria’s electricity sector.

Omogiafo disclosed this in an interview with journalists on the sidelines of the company’s 20th Annual General Meeting held in Abuja on Friday.

She stated, “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.

“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 development signals early implementation of the Federal Government’s intervention to clear legacy debts, finalised at about N3.3trillion owed to generation companies and gas suppliers, a longstanding issue that has constrained liquidity across the Nigerian Electricity Supply Industry.

Omogiafo noted that despite persistent challenges in the sector, including gas supply constraints and transmission infrastructure gaps, the Group has continued to deliver 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 that we saw in the sector, we were able to produce the kind of results that we have produced,” she said.

She stressed that the company remains focused on managing these constraints while leveraging 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 added.

The Transcorp CEO also expressed optimism that recent policy actions and leadership changes in the power sector would improve investor confidence.

She further highlighted the Group’s diversified operations, noting that investments in power and hospitality continue to drive growth despite macroeconomic pressures.