The Federal Government has begun repaying longstanding debts owed to power generation companies, according to the President and Group Chief Executive Officer of Transnational Corporation Plc (Transcorp), Owen Omogiafo.
Omogiafo described the development as the most significant progress made so far in resolving the liquidity crisis that has long plagued Nigeria’s electricity sector.
She made the disclosure on Friday during an interview on the sidelines of Transcorp Plc’s 20th Annual General Meeting held in Abuja.
“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,” Omogiafo stated.
She commended the Bola Tinubu administration, saying: “This is the greatest progress we have made as it relates to dealing with the historical debt.”
The repayment forms part of the Federal Government’s intervention to clear about N3.3 trillion in legacy debts owed to generation companies and gas suppliers between February 2015 and March 2025.
The initiative aims to restore liquidity and improve stability in the Nigerian Electricity Supply Industry.Despite ongoing challenges such as gas supply constraints and inadequate transmission infrastructure, Omogiafo noted that Transcorp Group has continued to deliver strong operational performance.
The Transcorp CEO expressed optimism that recent policy measures and leadership changes in the power sector would boost investor confidence.
This debt repayment effort follows President Tinubu’s approval of a comprehensive N3.3 trillion settlement plan, with implementation already underway.
Fifteen power plants have reportedly signed settlement agreements totalling N2.3 trillion.
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