Transcorp Power Plc has set an ambitious goal to double its contribution to Nigeria’s electricity grid, aiming for a 25% share of national power consumption, up from its current 12%. This strategic move, announced by Chairman Emmanuel Nnorom at the company’s Annual General Meeting, signals a significant push to bolster Nigeria’s energy sector amid persistent challenges.
“The power we’re generating today, our target is 25% of the power consumed in Nigeria,” Nnorom stated. “We are presently at about 12% of power consumed in Nigeria. And the plan this year is to be at 15%. Our target is to be at 25%.”
This ambition comes as Transcorp Power reports a staggering 115% revenue growth in 2024, soaring from N142.1 billion in 2023 to N305.9 billion. This financial surge, coupled with a 165% increase in profit after tax, from N30.2 billion to N80.01 billion, underscores the company’s robust performance despite prevailing macroeconomic headwinds.
“The repayment of our USD loan has significantly strengthened our financial position, enabling us to pursue more growth opportunities,” Nnorom added, highlighting the complete repayment of a $215 million foreign currency acquisition loan secured in 2014. This move notably reduced the company’s gearing ratio, reinforcing its financial stability.
For many Nigerians, consistent electricity remains a daily struggle. As I consider the implications, I recognize that Transcorp Power’s expansion could mean more stable power for households and businesses, potentially stimulating economic activity. However, realizing this vision hinges on addressing critical challenges like gas supply constraints and grid stability.
“The power sector remains critical to Nigeria’s economic growth. While gas supply constraints and grid stability issues posed challenges, we proactively secured alternative fuel sources and invested in grid infrastructure to mitigate risks,” Nnorom acknowledged.
The company’s commitment to shareholder value is evident in its proposed full dividend of N5 per share, totaling N37.5 billion. This includes an interim dividend of N1.50k and a final dividend of N3.50k per share.
Furthermore, Transcorp Power has expanded its partnership with Société Béninoise de Production d’Électricité in the Republic of Benin, increasing contracted capacity from 130MW to 200MW. This move not only strengthens its regional presence but also optimizes plant capacity and facilitates higher electricity exports.
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The ongoing transition within the Nigerian Electricity Supply Industry, moving towards bilateral contracts between generation and distribution companies, presents both opportunities and challenges. As noted by the company, “Transcorp Power is well-positioned to leverage this transition, having executed a Power Purchase Agreement with Abuja Electricity Distribution Company and engaging in advanced discussions with other DisCos.” This shift, replacing the current intermediary role of the Nigerian Bulk Electricity Trading Plc, could streamline operations and enhance efficiency.
“We’re on the right trajectory,” assured Managing Director and CEO Peter Ikenga, outlining strategic priorities for 2025, including plant capacity recovery, operational efficiency improvements, and rigorous maintenance plans.
Looking ahead, Transcorp Power’s success will depend on its ability to navigate the complex landscape of Nigeria’s power sector, addressing infrastructure gaps and ensuring a reliable energy supply that fuels economic growth and improves the lives of millions.
