Power
Geregu Power orders Siemens transformers to boost grid reliability
Geregu Power Plc has contracted Siemens Energy to supply three new generator transformers for its Kogi State facility following a steep revenue decline.
Key points
- Geregu Power contracts Siemens Energy for three generator transformers at its Ajaokuta plant.
- The procurement follows a 78.7% drop in half-year revenue reported for the first half of 2026.
- The agreement aims to curb equipment-related outages and stabilize national grid connections.
What happened
Geregu Power Plc has finalized a procurement accord with Siemens Energy to acquire three generator transformers, according to a corporate filing submitted to the Nigerian Exchange Limited. Nairametrics reported that the new hardware is designated for the GT11, GT12, and GT13 units situated at the company's thermal generation facility in Ajaokuta, Kogi State. Under the terms of the accord, Siemens Energy will oversee the complete lifecycle of the equipment, spanning design, manufacturing, testing, and delivery phases. Representatives from the Nigerian utility will also participate in Factory Acceptance Testing prior to any equipment shipment. Financial terms, delivery schedules, and expected commissioning dates were omitted from the public disclosure.
The infrastructure upgrade arrives on the heels of a challenging financial period for the power producer. Unaudited accounts for the six months concluding on June 30, 2026, revealed a dramatic contraction in corporate earnings. Energy sales and capacity-charge proceeds fell steeply, bringing overall turnover down to N18.66 billion. This performance contrasts sharply with the N87.63 billion registered during the identical timeframe in the previous year. Previous reporting indicated that extensive maintenance operations on a primary turbine compounded these operational headwinds earlier in the year. Despite the revenue downturn, the firm documented N291.41 million in property, plant, and equipment additions during the first half of the year, alongside a notable rise in machinery repair outlays which reached N1.53 billion compared to the prior year.
Why it matters
The operational stability of independent power producers remains critical for the wider Nigerian electricity framework. According to World Bank figures provided by the Centre for Energy Investment and Innovation, national electricity use per person stood at 140.6 kilowatt-hours in 2024, with grid access covering 62.5 percent of the population. These figures underscore the acute reliance on functioning thermal plants to maintain baseline grid stability. When major generation facilities encounter equipment bottlenecks or unexpected stoppages, the resulting deficits compound systemic stress across the transmission network. Targeted investments in core assets such as generator transformers are essential for mitigating downtime and improving overall plant reliability. However, funding these physical upgrades requires robust capital allocation that can severely test corporate balance sheets during periods of depressed revenue, making equipment financing and strategic supplier partnerships crucial subjects for sector investors and policymakers monitoring the Nigerian power market.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Grids decide whether generation becomes power that homes and businesses can rely on. Generation mix, transmission and distribution losses, and tariffs together shape reliability and the case for investment.
62.5% of people in Nigeria had electricity in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
