Transcorp Power Sets Sights on Dominating Nigeria’s Electricity Market
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Transcorp Power Plc has unveiled bold plans to increase its share of Nigeria’s electricity generation from 12 per cent to 25 per cent, underscoring its ambition to become a dominant player in the nation’s power sector. The announcement was made by the company’s Chairman, Emmanuel Nnorom, during its Annual General Meeting in Abuja on Tuesday.
“The power we’re generating today—our target is to provide 25 per cent of the power consumed in Nigeria. We are presently at about 12 per cent, and the plan this year is to reach 15 per cent. Our ultimate goal is to hit 25 per cent,” Nnorom stated. He noted that the company is prioritising enhancements in gas supply and infrastructure to boost output and support Nigeria’s industrial growth.
Record-Breaking Financial Performance Amid Economic Challenges
Despite facing macroeconomic headwinds, Transcorp Power reported a remarkable 115 per cent surge in revenue for 2024, climbing from N142.1bn in 2023 to N305.9bn. Operating profit rose to N114.03bn from N64.63bn, while profit before tax more than doubled from N52.8bn to N113.3bn. Profit after tax saw a staggering 165 per cent increase, reaching N80.01bn in 2024.
The company also achieved a significant financial milestone by fully repaying its $215m foreign currency acquisition loan, secured in 2014. This repayment drastically reduced its gearing ratio from 64.48 per cent in 2023 to 29.70 per cent in 2024, thereby strengthening its financial position. “The repayment of our USD loan has significantly bolstered our financial stability, enabling us to pursue further growth opportunities,” Nnorom said.
Power Generation and Capacity Expansion
In line with its aggressive growth strategy, Transcorp Power recovered an additional 125MW of capacity in 2024, increasing its total available capacity from 500MW at the start of the year to 625MW by year-end. This enhancement is expected to further boost the company’s generation capacity in 2025.
Nnorom highlighted the company’s proactive approach to tackling sector challenges, including gas supply constraints and grid stability issues. “We secured alternative fuel sources and invested in grid infrastructure to mitigate these risks,” he said.
Pioneering Industry Transition and Regional Expansion
Transcorp Power is positioning itself as a frontrunner in Nigeria’s evolving Electricity Supply Industry, which is transitioning towards a bilateral contract model between generation and distribution companies. This shift aims to replace the existing intermediary role played by the Nigerian Bulk Electricity Trading Plc.
“Transcorp Power is well-positioned to leverage this transition, having already executed a Power Purchase Agreement with Abuja Electricity Distribution Company and engaging in advanced discussions with other DisCos,” Nnorom noted.
On the regional front, Transcorp Power reinforced its leadership by expanding its partnership with Société Béninoise de Production d’Électricité in the Republic of Benin. This strategic move increased its contracted capacity from 130MW to 200MW, paving the way for higher electricity exports and reducing stranded capacity at its plants.
Strong Growth Outlook and Shareholder Value
Transcorp Power’s Managing Director and CEO, Peter Ikenga, expressed optimism about the company’s growth trajectory for 2025, citing its solid financial position and strategic priorities. “We’re on the right trajectory. Our records over the last six years show consistent growth, and we have even better things in store for 2025,” Ikenga stated.
Key priorities for 2025 include recovering plant capacity, enhancing operational efficiency, and implementing rigorous maintenance plans. Additionally, the company plans to invest in human capital, optimise costs, and improve its environmental, social, and governance practices.
On the financial front, Transcorp Power, which was listed on the Main Board of the Nigerian Exchange in March 2024 with an initial market capitalisation of N1.80tn, saw its value rise to N2.70tn by the end of the year. The company also demonstrated its commitment to delivering shareholder value by declaring a full dividend of N5 per share, totalling N37.5bn.
Leading the Charge in Nigeria’s Power Sector
As Transcorp Power Plc charts its path to increasing its market share to 25 per cent, its strategic investments and bold vision underscore its role as a key driver of Nigeria’s power sector transformation. With its robust financial performance, ambitious growth targets, and proactive adaptation to industry changes, the company is well-positioned to redefine Nigeria’s electricity landscape.
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