Follow Us on Google
By Chukwuma Umeorah
Power generation companies quoted on the Nigerian Exchange Limited (NGX) are grappling with tightening liquidity despite higher earnings, as trade receivables surged to about N602.5 billion in the nine months ended September 30, 2025, compared with an estimated N420.2 billion in the same period of 2024. Trade receivables represent money owed to the companies by customers or market operators, mainly the Nigerian Bulk Electricity Trading Plc (NBET) for electricity already supplied but not yet paid for.
A review of the unaudited financial statements of Transcorp Power Plc and Geregu Power Plc shows that while both companies recorded a combined revenue of over N446.8 billion in the nine months of 2025, up from about N335.9 billion reported in the same period last year, the bulk of their income remains trapped in uncollected payments, exposing them to continued liquidity strain.
Transcorp Power’s receivables rose sharply to N432.149 billion in Q3 2025, from about N298.389 billion as of December 2024, representing a year-on-year rise of nearly 45 per cent. Geregu Power’s receivables also increased from roughly N121.82 billion to N170.351 billion during the same period. The figures bring total unpaid bills for the two firms to over N602.5 billion, far above last year’s level, highlighting the worsening state of collections from market operators in the Nigerian Electricity Supply Industry (NESI).
Despite the jump in revenue, both firms maintained modest profits. Transcorp Power’s profit after tax rose to N68.424 billion in Q3 2025 from N58.4 billion in the corresponding period of 2024, representing an increase of 17 per cent. Geregu Power’s profit after tax also improved slightly to N25.141 billion, compared with N23.464 billion recorded in 2024.
However, their cost structures expanded even faster. Transcorp Power’s cost of sales climbed to N188.872 billion in the period under review, from N127.093 billion a year earlier, driven largely by higher gas prices, maintenance, and foreign exchange losses. These costs may have been exacerbated by N216 billion in debts owed to gas suppliers, which according to reports “triggered supply halts in December 2024, as over 70 per cent of Nigeria’s power relies on gas.” Geregu Power’s cost of sales also rose significantly to about N80 billion, up from N61 billion in Q3 2024. Collectively, the two companies’ cost of sales rose to about N268.872 billion, eroding part of the gains from increased turnover.
Other News
Finance costs also remained elevated. Transcorp Power reported N8.646 billion in interest expenses during the nine months, up from N7.916 billion in the previous year, while Geregu Power’s financing expenses climbed to N3.3 billion from N2.8 billion in Q3 2024. The two firms together owed about N103.163 billion in borrowings; N34.611 billion for Transcorp and N68.552 billion for Geregu highlighting growing reliance on debt to sustain operations amid cashflow gaps.
The liquidity challenge was further reflected in their cash positions. The combined cash and cash equivalents of both companies stood at about N35.74 billion. Transcorp with N7.638 billion and Geregu with N28.102 billion, down from roughly N48.271 billion recorded at the end of last year. This was despite the declaration of dividends totalling N57 billion, suggesting that both companies paid out more cash to shareholders than they retained in their accounts.
Impairment losses on financial assets also widened, reflecting rising credit risks. Transcorp Power booked N7.689 billion in impairment, up from N4.296 billion in Q3 2024, while Geregu Power recorded N3.87 billion, compared with N3.6 billion in the prior period. The combined impairment charge of about N11.559 billion signals continued delays in payments from off-takers.
Commenting on the company’s performance, Chairman of Transcorp Power Plc, Emmanuel Nnorom, stated, “Our performance in the third quarter, building on the positive momentum in the first half of the year, demonstrates Transcorp Power’s resilience and capacity to sustain profitability, despite economic challenges, supported by efficient operations strategies and prudent cost management. This sustained performance, in the face of economic headwinds, will further strengthen investor confidence in our capacity to create shared value and maintain our growth trajectory.”
Similarly, the Managing Director/Chief Executive Officer, Peter Ikenga, said, “The Q3 2025 results are underpinned by further growth in energy delivered to the grid, and emphasising our strategic approach, that ensures we deliver ever increasing value to our shareholders and stakeholders. These results illustrate our continuous drive to improve our business operations, eliminating waste and harnessing value. We are confident of finishing the year strong in fulfilment of our mission to improve lives and transform Africa.”
While these companies emphasised operational efficiency and prudent cost management, the underlying data suggests both listed GenCos were grappling with severe cashflow strain. The rising debt levels, combined with thin cash reserves and ballooning receivables, pose potential threats to the sustainability of future payouts and expansion plans.
