Transcorp decries N650bn power generation debt

The Federal Government owes Transcorp Power up to N650bn for its generated power. The company decried the liquidity challenges facing the power sector, saying this has been affecting operations.

The Group Chief Executive Officer of Transcorp Plc, Owen Omogiafo, disclosed this during a live television interview on Thursday, which was monitored by our correspondent.

According to her, Transcorp Plc as a group has an installed capacity of 2,000 megawatts but generates about half of that due to illiquidity.

“For Transcorp Plc as a group, our installed capacity is 2,000MW but available capacity today is about a thousand of that. Why? Is it because we don’t want to put in more? Is it that we don’t have the wherewithal to increase that? No!

“But when you look at the liquidity challenges that we’re facing, it’s interesting to know that Transcorp Group alone is owed about N650bn by the government.

“We’re owed about N650bn from the power that we’ve generated. So, if you look at it as an investor, I want to be able to do more. I want to run a sustainable business. But at the same time, we need to be able to ensure that there’s liquidity, and the money is coming back so I can continue to reinvest,“ she said.

However, Omogiafo noted that despite the challenges, Transcorp has been able to maintain, sustain, and have strong resolute results, declaring N55bn in dividends.

Speaking about investments in the power sector, she disclosed that the company has three power generation companies through the privatisation exercise.

“If we start with the Transcorp Power Ugeli, when we bought into it in 2013, it was doing about 160MW. As of the close of 2024, our available capacity had risen to 625MW out of an installed 972MW of power. If you look at TransAfam, we just got into TransAfam in 2021; it was 35MW, before privatisation. When we closed in 2024, our available capacity for TransAfam had risen to 305MW. That is indeed progress,” she said.

Omogiafo stressed that the group’s Heirs Energies is rich in gas, saying it has continued to supply gas to TransAfam power, and helping to increase its output.

Omogiafo stated that Nigeria today has a significant quantum of self-generated power of up to 50 gigawatts.

She stressed that the world is moving towards renewable and sustainable energy, and Transcorp is looking at energy sufficiency for Nigeria and Africa; trying to deal with the energy poverty across the continent.

“Nigeria already has an installed capacity of about 13,000MW. So, to bridge the gap between where we are today and what the needs are, what’s actually needed is we’re going to be adding renewable energy sources because we are uniquely positioned. We have huge solar capacity, wind, and water.

“TransCorp Energy is going to be in there driving that as well because of the goodwill that we enjoy. You find international partners talking to us. They are asking us, what are you thinking? What are your thoughts? Can we come to work with you? Can we partner with you in Nigeria and the continent to see how we’re bringing renewable energy solutions here? Also, we are looking at new technology that can make power generation more efficient as well as power distribution,” she said.

Recently, the Chief Executive Officer of the Association of Power Generation Companies, Dr Joy Ogaji, disclosed that the Gencos are suffering, and they need urgent and pragmatic solutions to ease their liquidity crisis, stressing that the liquidity crisis is N4.7tn.

“As for liquidity, GenCos are seriously suffering and urgently need pragmatic solutions to ease the liquidity crisis, totalling N4.7tn,” Ogaji stated.