Geregu Power, Transcorp Power generate N154.6bn profit in 2024 amid dilapidated power sector

With the dilapidated power sector in Nigeria, Geregu Power Plc and Transcorp Power Plc generated a sum of N154.6 billion profit in 2024, a growth of 100.3 per cent when compared to N77.15billion recorded in 2023.

Through its operations, Geregu Power and Transcorp Power have contributed significantly to Nigeria’s national grid.

As gathered by Westernpost, Transcorp Power reported N113.3 billion profit in 2024, representing an increase of 114.7 per cent from N52.76 billion in 2023 as Geregu Power declared N41.27 billion profit in 2024, representing an increase of 69.2 per cent from N24.4 billion in 2023.

In the year under review, the two power generating companies improved on revenue generation as most Nigerians pay heavily for consumption.

Transcorp Power announced N305.94 billion revenue in i2024, about 115 per cent growth from N142.12 billion in corresponding period. Transcorp Power’s capacity charge of about N100.04 billion in 2024 from N47.07billion in 2023, while its energy delivered moved from N95.03 billion in 2023 to N205.9 billion in 2024.

For Geregu Power, its revenue stood at N137.13 billion in 2024, about 65 per cent increase from N82.91billion declared in 2023.

Geregu Power recorded revenue surges in Energy Sold and Capacity Charges printing N87.4 billion and N49.6 billion respectively. While energy sold rose 69%, capacity charge delivered a revenue jump of 59.4per cent.

State of power sector in Nigeria

Nigeria’s power sector faces significant challenges, including inadequate generation capacity, aging infrastructure, and frequent grid failures.

Despite having an installed capacity of approximately 13,500 megawatts (MW), the country often generates only around 4,000 Megawatts (MW), which is insufficient for its population of over 200 million.

The transmission network is particularly problematic, with losses averaging 7.79 MW for every 100 MW injected into the grid. This inefficiency is due to underinvestment, vandalism, and outdated equipment. Consequently, major cities like Lagos, Abuja, and Kano experience frequent blackouts, with the grid collapsing multiple times annually.

In response to these issues, the Nigerian government enacted the Electricity Act 2023, transferring regulatory authority from the federal government to the country’s 36 states. This devolution aims to encourage localized solutions and attract investment in the power sector.

Efforts to diversify energy sources are underway, with a focus on renewable energy projects. However, challenges such as high borrowing costs and financial instability hinder progress. International support, including a N115.2 billion or  $75 million pledge from USAID, aims to assist Nigeria’s electricity reforms and clean energy transition.

Despite these initiatives, systemic challenges persist, and significant investment is required to achieve a reliable power supply. Industry operators estimate that the country will need as much as $100 billion over the next 20 years to maintain current service levels.

Transcorp Power

Transcorp Power, operation is in the Ughelli Power Plant in Delta State. The plant has an installed capacity of 972MW and plays a pivotal role in providing stable and reliable electricity to support economic growth.

The company is committed to sustainable power generation and aims to be a leading provider in Nigeria and beyond.  

Geregu Power

Geregu Power is a prominent Nigerian power generation company dedicated to accelerating economic growth through sustainable energy solutions. Located in Ajaokuta, Kogi State, the company operates the Geregu Power Plant, which was commissioned in 2007 and has an installed capacity of 435 MW. The plant comprises three Siemens V94.2 gas turbines, each with a capacity of 145 MW.

In 2013, Geregu Power was acquired by Amperion Power Distribution Company Limited. Since then, the company has undertaken significant overhauls to enhance plant performance and efficiency. Notably, in 2016, a major overhaul increased the plant’s capacity from 414 MW to 435 MW.

In June 2024, Geregu Power signed a memorandum of understanding with Siemens Energy to expand the plant’s capacity to 1.2 gigawatts (GW).

The expansion plan includes upgrading the existing capacity to 500 MW, adding a combined cycle unit to generate an additional 200 MW, and constructing new units with lower emission turbines to provide an extra 500 MW.  

In October 2022, Geregu Power made history by becoming the first power company to list on the Nigerian Exchange Limited (NGX), reflecting its commitment to transparency and growth.

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