Geregu Power Plc has signed an agreement with Siemens Energy for the supply of three generator transformers, as the electricity company moves to strengthen plant reliability following a sharp decline in revenue in the first half of 2026.
The company disclosed the agreement in a notice filed with the Nigerian Exchange Limited on October 23, 2026.
The transformers are intended for generating units GT11, GT12 and GT13 at the Geregu Power Plant in Ajaokuta, Kogi State.
According to the company, the equipment is expected to improve plant reliability, reduce the risk of equipment-related outages and strengthen the facility’s connection to the national grid.
Under the agreement, Siemens Energy will handle the design, manufacture, testing and delivery of the transformers.
Geregu Power also disclosed that it would participate in Factory Acceptance Testing before the equipment is shipped to Nigeria.
The company described the procurement as part of its ongoing investment in maintaining and modernising its generating assets.
“The procurement forms part of Geregu’s continued investment in the maintenance, modernisation and improvement of its generating assets,” the company stated.
It added that the project was designed to strengthen critical infrastructure and support safe and reliable plant operations.
“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,” it said.
The company did not disclose the value of the agreement, the expected delivery schedule or the date the transformers would be commissioned.
Geregu’s Ajaokuta facility operates three Siemens V94.2 gas turbine generator units with a combined installed capacity of 435 megawatts.
The latest procurement focuses on equipment supporting the existing generating units. The announcement did not indicate that the deal would increase the plant’s installed electricity generation capacity.
The agreement comes amid a significant contraction in the company’s financial performance during the first six months of the year.
Geregu Power’s unaudited financial statements for the period ended June 30, 2026, showed that total revenue fell by 78.7 per cent to N18.66bn from N87.63bn recorded in the corresponding period of 2025.
Revenue from electricity sold declined by 78.1 per cent to N12.46bn, compared with N56.77bn in the previous year’s corresponding period.
Revenue from capacity charges also dropped by 79.9 per cent to N6.20bn from N30.87bn.
The company’s second-quarter revenue fell to N419.13m, compared with N55.87bn in the same quarter of 2025.
Profit after tax for the first half of 2026 declined by approximately 88 per cent to N2.54bn from N20.27bn a year earlier.
The company has previously faced operational disruptions associated with major turbine maintenance, adding to the pressure on its earnings.
The Siemens agreement represents an investment in equipment reliability, although its financial and operational benefits will depend on the delivery, installation and performance of the new transformers.
