Geregu Power signs Siemens transformer deal after sharp revenue decline 

Geregu Power Plc has signed an agreement with Siemens Energy for three generator transformers to strengthen plant reliability, following a sharp decline in electricity revenue during the first half of 2026. 

The company disclosed the agreement in an October 23, 2026 announcement filed with the Nigerian Exchange Limited. 

The transformers will serve its GT11, GT12 and GT13 generating units at the Geregu Power Plant in Ajaokuta, Kogi State, supporting efforts to reduce equipment-related outages. 

Siemens agreement targets plant reliability 

Geregu said the transformers are expected to enhance equipment reliability and strengthen the plant’s connection to Nigeria’s national grid. Siemens Energy will design, manufacture, test and deliver the equipment under the agreement. 

Geregu will also participate in Factory Acceptance Testing before the transformers are shipped to Nigeria, as part of the procurement process. 

• “The procurement forms part of Geregu’s continued investment in the maintenance, modernisation and improvement of its generating assets,” the company stated. 

• “The initiative is aimed at strengthening critical plant infrastructure, operational reliability, minimising the risk of equipment failure, and supporting the safe and reliable operation of the plant.” 

The company did not disclose the contract value, delivery schedule or commissioning date. 

Its Ajaokuta plant currently operates three Siemens V94.2 gas turbine generator units with a combined installed capacity of 435 megawatts. The agreement builds on the existing relationship between the two companies and focuses on infrastructure serving those units. 

The announcement did not disclose an increase in installed generating capacity. 

Energy sales revenue falls 78% 

Geregu’s unaudited financial statements for the six months ended June 30, 2026, show a steep contraction in both energy sales and capacity-charge revenue. Total revenue fell 78.7% to N18.66 billion, compared with N87.63 billion in the corresponding period of 2025. 

The breakdown in Note 6 shows that the decline affected both components of the company’s electricity revenue. 

• Revenue from energy sold dropped 78.1% to N12.46 billion, from N56.77 billion. 

• Capacity-charge revenue declined 79.9% to N6.20 billion, from N30.87 billion. 

• Second-quarter revenue fell to N419.13 million, compared with N55.87 billion a year earlier. 

• Half-year profit after tax fell approximately 88% to N2.54 billion, from N20.27 billion. 

The revenue figures are disclosed in the company’s half-year financial statement, while Nairametrics’ August coverage also highlighted the earnings decline and reported that a major turbine maintenance programme had disrupted operations. 

The latest transformer procurement adds further context to Geregu’s investment in equipment reliability following that weak first-half performance. 

Asset investment and bond repayment 

The half-year accounts also record N291.41 million in additions to property, plant and equipment, providing a measure of capital investment recognised during January–June 2026.  

These accounting additions should be distinguished from cash capital expenditure and from the undisclosed value of the October transformer agreement. 

The additions were concentrated in equipment and vehicles, according to the fixed-asset schedule. 

• Office equipment accounted for N163.27 million. 

• Trucks and vehicles contributed N91.84 million. 

• Computer equipment accounted for N20.15 million, while furniture and fittings added N16.16 million. 

The accounts separately recognised N1.53 billion in repairs and maintenance expenses for plant and machinery, compared with N839.30 million a year earlier. That operating expense is separate from the fixed-asset additions.