Transcorp Hotels Plc has reported strong financial performance, posting N97bn in revenue for the 2025 financial year, a 38 per cent increase over the previous year.

At the 12th annual general meeting held in Abuja on Thursday, Chairman of the company, Awele Elumelu, said the hospitality firm entered 2026 on a solid footing following what she described as a successful year.

“So for Transcorp Hotels PLC, 2025 was actually a good year. We’ve entered 2026 quite strongly. We ended the year with a profit of 97bn, which was a 38% increase on the preceding year. And even profit as well, that was our revenue. We’re very happy to be going into the new year,” she said.

She added that the company rewarded shareholders with an improved dividend payout.

“And we’re very pleased that this year we’ve been able to give our shareholders shares of N1.30 kobo per share as the final dividend,” Elumelu stated.

According to her, the company’s performance reflects a combination of shareholder support, effective management, and strong corporate governance.

“So we know actually we’ve been able to delight our shareholders. But we thank them at the same time for their support because it’s through their support and through their encouragement and all the advice that they tend to give us at sessions like this and give the management. And through the hard work and commitment of the management, we’ve been able to do that. So that’s what we’ve been able to do with regard to shareholding.”

Elumelu highlighted brand strength and operational efficiency as key drivers of growth.

“We have a strong brand, and this has worked very well for us, and it continues to improve. We’ve had our management team, they’ve increased their operational efficiency.”

She also noted efforts to diversify the company’s offerings, including the development of a major events facility.

“We’ve also done some work in diversifying what we have. Just in 2025, we built and set up the Transcorp Event Center, which is a multifunctional center, which has a capacity of 5,000. We’ve had lots of big events in 2025, including the Afrexim event, which took up to 4,000 dignitaries from out of state.

“So that has played a major role in that. We’ve also had things like improving our digital technology and improving customer service generally. You can see from our rooms that we’ve seen a lot of digital improvements, from check-in to room service, and of course, our staff.

“We’re blessed with great staff, and so these are some of the things that have led to improvements in revenue.”

Looking ahead, she expressed optimism about the company’s prospects for 2026, including expansion plans.

“For 2026, the board is convinced and is confident that we will do better. Our management team is in line as well, and we just want to build on what we’ve been doing. We want to build on the brand that we’ve had.

“We want to build on investing in infrastructure, investing in technology, and investing in diversifying. We’re looking at setting up a branch in Lagos. We’ve been on this for a while. So this is also another avenue. And all this on the bedrock of good corporate governance, because we pride ourselves on being able to ensure that we carry out good corporate governance.”

Also speaking, the Managing Director of the company, Uzoamaka Oshogwe, said total dividend payout for the year stood at about N13 billion.

“Dividend in total is 13 billion. Because last year we paid, 10kobo, and then this year, that final dividend was 1 naira 20 kobo. So in total that was just slightly over 13 billion.”

On business performance in the new year, she said occupancy rates had picked up strongly after a slow start in January.

“January is kind of slow, but it’s been good. Our occupancy since the middle of January has been about 100%.”

Oshogwe disclosed that the company is collaborating with the Transcorp Group to address energy costs and sustainability concerns.

“Transcorp is known for hospitality, and we invest in hospitality and also in power. So what we’re doing is that we’re partnering with Transcorp Power to ensure that we begin to explore other options for cheaper power. One of the ones that we’ve actually implemented towards the end of last year was the dual gas burner.

“So that’s actually using gas to generate power. So all of our boilers, so if you think about the number of boilers we have in 667 rooms, that are powered by gas. So that not just saves us costs, it’s also very friendly to the environment.

“And then we’re also working with Transcorp Energy, and we’re looking at renewable energy. And that is also, what brings to mind the sustainability and the ESG factor into our operations.”

She added that capital allocation would be guided by projects capable of delivering multiple returns.

“We are putting in our money, where we can have multiple capital appreciations. So that is quite intentional, because funds are limited. So you must ensure that whatever projects you actually put your funds in have that multiplying effect in revenue generation.”

According to her, the company’s strategy for 2026 will focus on operational excellence, technology investment, and brand relevance.

“And then the second one is operational excellence. We started this last year. And that is just investing in our people and also in technology.

“So those are the two key areas that we’re actually going to pinpoint our operational excellence in. And then number three is brand relevance. Brand relevance is all about people beginning to understand what our brand stands for and equating that into sustainability in our growth.

“So those are the three key areas that we’re going to be concentrating on this year to ensure that we sustain the revenue growth, and we also multiply it. Because one of the shareholders, first of all, started by saying 100 billion. And I said, we are already there,” she concluded.

The company reported a profit before tax of N22.613bn for the year ended December 31, 2024, representing an impressive 138.48 per cent year-on-year growth. It also declared a final dividend of N0.64 per share, bringing the total dividend for the year to N0.74, including the N0.10 interim dividend previously paid.

Despite cost pressures, the company maintained solid margins. Although the cost of sales grew faster than revenue, gross profit margin remained strong at 70.89 per cent. Room sales, with an 84.5 per cent margin, remained the most profitable segment, while food and beverages, at 42.9 per cent, operated with comparatively tighter margins. Operational expenses increased during the year, largely driven by energy costs, which surged from N2.425 billion in 2023 to N4.763 billion.

On the balance sheet, total assets grew by 11.58 per cent to N140.696 billion, reflecting continued expansion. Total borrowings declined by 22.12 per cent, reducing financial leverage, while interest expenses fell 10.21 per cent year-on-year to N2.798 billion.

This improved the company’s interest coverage ratio to 9.30 times from 4.22 times in 2023, indicating that operating profit comfortably covered interest obligations. Shareholders’ funds also rose by 20.54 per cent year-on-year, supported by strong earnings growth and retained profits, further strengthening its financial position.

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Organised labour in the federal public service has issued a Friday deadline to the Federal Government, demanding the immediate release of funds to settle three months’ outstanding wage awards and other pending allowances owed to workers across Ministries, Departments and Agencies.

The leadership of the Joint National Public Service Negotiating Council (Trade Union Side) conveyed the ultimatum in a letter addressed to the Federal Ministry of Labour and Employment, warning that failure to meet the February 27, 2026, deadline would compel the eight unions in the civil service to take decisive action.

The unions accused the government of withholding funds meant for workers, alleging that relevant agencies were prepared to process payments once the Ministry of Finance released the required funds.

The wage award dispute, which has persisted for over two years, followed the Federal Government’s approval of a N70,000 minimum wage after the removal of fuel subsidy.

Labour leaders stated that although partial payments were made after sustained pressure, three months remain unpaid since July 2024, heightening tension within the federal workforce.

In a letter addressed to the Minister of Finance and Coordinating Minister of the Economy, the union stated: “This wage award has dragged on for over two years now since the implementation of the N70,000 minimum wage payment was approved.”

The unions recalled that “the wage award was approved as a cushioning measure following fuel subsidy removal and was to run until the commencement of the new minimum wage implementation in July 2024.

“It is beyond the imagination and expectations of federal workers that the Federal Government left five months unpaid ab initio; not until there was much pressure did the Federal Government effect the staggered payment of two months, leaving the balance of three months since July 2024 unpaid.”

The JNPSNC further alleged that “all relevant government agencies responsible for effecting payment are prepared to do so but are constrained by the non-release of funds by the Ministry of Finance.

“Available information revealed that all government agencies responsible for the payment of the wage award are ready to pay, but this is subject to the release of funds by the Honourable Minister of Finance, who is deliberately holding back the money.”

Beyond the wage award arrears, the unions listed other outstanding obligations requiring urgent attention, including promotion arrears for workers elevated more than three years ago, salary arrears for employees recruited between 2015 and 2024, and the proper implementation of a 40 per cent peculiar allowance based on the N70,000 minimum wage.

Warning of possible industrial action, the unions declared: “If the money meant for the payment of the wage award is not released on or before Friday, 27th February, 2026, the national leadership will take the bull by the horn and ensure appropriate actions are taken.”

They insisted that workers’ entitlements must not be treated with levity and that employees should not be subjected to undue hardship over delayed payments.

Copies of the letter were also forwarded to the Federal Ministry of Labour and Employment, the Office of the Head of the Civil Service of the Federation, the Nigeria Labour Congress, the Trade Union Congress, security agencies and affiliate unions for urgent attention.

The executive order issued by President Bola Tinubu stopping the deduction of management fees and the Frontier Exploration Fund by the Nigerian National Petroleum Company Limited has effectively halted revenue streams that generated about N2.076tn in four years, investigations by The PUNCH have shown.

An analysis of monthly earnings submitted to the Federation Account Allocation Committee and obtained by our correspondent in Abuja on Wednesday revealed that the national oil company received N20.739bn from the deductions in 2022, N695.9bn in 2023, N452.6bn in 2024, and N906.91bn in 2025, bringing the total to about N2.1tn between 2022 and 2025.

This development followed the President’s directive that all revenues due to the federation must be remitted in full, without prior deductions, in line with constitutional fiscal provisions and transparency reforms in the oil and gas sector.

The order, which prioritises constitutional fiscal provisions governing the Federation Account over certain operational funding arrangements under the Petroleum Industry Act, specifically halts automatic deductions such as management fees and contributions to the Frontier Exploration Fund from oil and gas revenues before remittance, insisting that all earnings must first be paid into the Federation Account in line with the Constitution.

The move has sparked varying reactions. State governments and fiscal transparency advocates have welcomed the order, saying it will boost distributable revenues, strengthen accountability, and address longstanding concerns about opaque deductions.

However, industry players and legal analysts warn that the order could create tensions between statutory provisions of the Petroleum Industry Act and constitutional fiscal rules, potentially leading to policy uncertainty.

They argue that frontier exploration and joint venture funding mechanisms were designed to support reserve growth and operational efficiency, and caution that abrupt changes could slow investments and affect production if alternative funding models are not provided.

Labour groups, including the Petroleum and Natural Gas Senior Staff Association of Nigeria, have called for clarity on the implementation framework, insisting that reforms must not disrupt production or job security. They also urged the government to design a transparent funding mechanism for critical industry projects while ensuring strict oversight of remittances.

Overall, stakeholders agree that the success of the executive order will depend on transparency, disciplined implementation, and the ability of the government to balance fiscal reforms with sustained oil and gas investment.

A presidential implementation committee has been directed to oversee and coordinate the effective implementation of the new directive on oil and gas revenue remittance.

Further analysis of the four-year trend showed sharp fluctuations in the deductions retained by the NNPC. In 2022, the company received N20.739bn from management fees, frontier funds, and services-related deductions. This rose to N695.9bn in 2023, representing an increase of N675.161bn or an extraordinary 3,255.4 per cent year-on-year growth, reflecting a major expansion in retained earnings.

However, in 2024, the amount dropped significantly to N452.6bn, representing a decline of N243.3bn compared to 2023, a sharp 34.96 per cent decrease. The downward trend was reversed in 2025 when deductions surged to N906.91bn, an increase of N454.31bn over 2024, translating to a dramatic 100.37 per cent year-on-year increase.

Comparing 2025 with 2022, the retained deductions rose by N886.171bn, representing a cumulative increase of about 4,271.6 per cent over the period and a total of N2.1tn.

The data underscored not only the scale of the deductions but also the volatility in annual retention levels, a factor that has intensified debate over the recent executive directive mandating full remittance of oil and gas revenues to the Federation Account before any operational charges.

Monthly data indicated that the deductions consistently reduced distributable profits to the federation. In 2022, the NNPC received N14.323bn from frontier exploration services but recorded a deficit of N36.15bn, N3.21bn as management fees, and another N3.21bn from frontier funds.

A month-on-month analysis of 2023 earnings showed that in January 2023, NNPC retained N29.30bn. This declined in February to N25.66bn, reflecting a 12.42 per cent month-on-month drop. In March, earnings rose sharply to N44.78bn, marking a 74.49 per cent increase over February.

In April, deductions fell to N32.74bn, a 26.88 per cent decrease from March. In May, retained earnings climbed to N38.99bn, representing a 19.09 per cent increase. By June, deductions surged to N63.72bn, a 63.43 per cent jump, the strongest growth recorded in the first half of the year.

However, in July, earnings dropped to N47.38bn, a 25.64 per cent decline. In August, they fell further to N38.11bn, indicating a 19.57 per cent decrease. The trend reversed in September, with deductions rising to N48.44bn, a 27.11 per cent increase.

In October, retained earnings dipped slightly to N46.17bn, a 4.69 per cent decline. A dramatic spike occurred in November, when deductions soared to N110.996bn, a 140.41 per cent increase over October, reflecting a sharp jump in total profit for the month.

The upward trajectory continued into December, when N169.63bn was retained, representing a further 52.82 per cent increase compared to November, the highest monthly figure recorded in 2023.

Overall, while the percentage split remained structurally constant at approximately 60 per cent of profit, the actual value of earnings retained by NNPC fluctuated widely, with month-on-month movements ranging from a 26.88 per cent decline to a 140.41 per cent surge, underscoring the volatility in oil sector revenues during the year.

Similarly, in 2024, deductions persisted despite fluctuating oil earnings. In September 2024, N35.17bn was removed under each category, with the federation receiving N46.9bn out of N117.24bn profit. In November, N47.9bn was deducted under each category, leaving N63.87bn for distribution.

In January 2024, NNPC retained N14.67bn. This surged in February to N46.022bn, representing a 213.7 per cent increase month-on-month. However, the figure dropped significantly in March to N12.342bn, marking a 73.2 per cent decline compared to February.

In April, retained earnings rebounded to N24.028bn, reflecting a 94.7 per cent increase. The amount declined again in May to N12.524bn, a 47.9 per cent decrease, and further dropped in June to N11.64bn, representing a 7.1 per cent fall.

In July, earnings edged up to N12.342bn, a 6.0 per cent increase over June. However, they plunged in August to N5.36bn, translating to a 56.6 per cent decline.

A sharp spike was recorded in September, when deductions rose dramatically to N70.346bn, representing a 1,211.7 per cent increase from August, the highest monthly growth rate for the year. In October, earnings declined to N61.108bn, a 13.1 per cent drop, before rising again in November to N95.808bn, marking a 56.8 per cent increase.

The trend reversed in December, when retained earnings fell sharply to N44.504bn, reflecting a 53.6 per cent decline compared to November. Overall, the data highlighted extreme volatility in NNPC’s retained earnings in 2024, with month-on-month changes ranging from a 73.2 per cent contraction to a 1,211.7 per cent surge during the year.

Findings further indicated that NNPC may lose about N906.91bn in management fees and Frontier Exploration Fund deductions. Each of the funds accounted for N453.455bn in 2025. A breakdown showed that the N453.455bn realised for frontier exploration fell short of the N710.520bn budgeted for the year, leaving a deficit of N257.066bn.

The monthly trend reveals the volatility of the fund. In January, N31.77bn was deducted from the frontier line when PSC profits came in at N105.91bn. The February deduction rose to N38.30bn from a profit of N127.67bn, representing a 20.6 per cent increase on the January inflow.

March provided the first big surge, with N61.49bn allocated to frontier exploration from profits of N204.96bn, a jump of 60.5 per cent on February’s figure. April, however, saw deductions ease back to N36.58bn as profits slid to N121.93bn, a 40.5 per cent drop compared with March.

In May, the fund received N38.8bn, only slightly higher than April’s contribution, reflecting profits of N129.33bn. June delivered the lowest allocation so far this year, just N6.83bn, after profits collapsed to N22.77bn. That represented an 82.4 per cent fall from May.

The flow recovered somewhat in July, with N25.34bn transferred into the fund from profits of N84.48bn. In August, the trend rose sharply to its highest level so far this year, as production sharing contract earnings surged to N263.13bn. This translated to N78.94bn remitted to the Frontier Exploration Fund, more than three times the July contribution and about twelve times the amount recorded in June.

The momentum was sustained in subsequent months. In September, PSC profit stood at N275.38bn, with N82.61bn deducted for frontier exploration. October recorded a sharp decline, as profit dropped to N36.82bn, while deductions amounted to N11.05bn.

In November, profit rebounded to N112.32bn, with N33.70bn transferred to the fund. However, by December, PSC earnings moderated again to N26.82bn, resulting in frontier exploration deductions of N8.05bn.

The same 30 per cent rule also applied to NNPC’s management fees, which mirrored the frontier deductions exactly.

In January, NNPC booked N31.77bn; in February, N38.30bn; in March, N61.49bn; in April, N36.58bn; in May, N38.8bn; in June, N6.83bn; in July, N25.34bn; in August, N78.94bn; N82.614bn in September; N11.046bn in October; N33.695bn in November; and N8.046bn in December.

Energy experts claim that the new order would significantly alter the structure of oil revenue flows. According to them, if the deductions had been suspended earlier, the federation could have received the full N2.1tn over the period, strengthening fiscal buffers and infrastructure funding.

The President’s directive, which took effect immediately, mandates the NNPC to remit gross revenues and seek approval for legitimate operational expenses through the budgetary process.

Any breach of the directive, according to the document, would be treated as a violation of a lawful executive order and constitutional fiscal provisions.

The policy has drawn mixed reactions from stakeholders. While state governments and some economists welcomed the move as a step towards transparency, industry operators cautioned that cutting the funding stream for frontier exploration could affect long-term oil and gas development.

An NNPC source had earlier narrated how the directive could affect the long-term reform trajectory of the NNPCL, especially as conversations around its potential listing on the stock exchange continue.

The senior official warned that the new directive could significantly disrupt ongoing production sharing contract operations, affect staff deployment, and send negative signals to investors, particularly in the deepwater segment of Nigeria’s oil and gas industry.

This official, who spoke on condition of anonymity because he was not authorised to speak publicly, said the order could weaken the company’s operational oversight over production sharing contracts and affect hundreds of personnel dedicated to such activities.

According to him, no fewer than 400 to 500 staff are dedicated daily to overseeing and managing PSC operations, including monitoring production, reviewing costs and ensuring compliance across various deepwater assets.

He said, “It would affect us to a great extent because we have staff who are dedicated to these lines of activities. We have no fewer than 400 to 500 staff whose daily work is focused on production sharing contracts. These are professionals working on rigs, platforms, seismic operations and cost monitoring. We are talking about personnel across 39 PSC sites, out of which 14 are producing, and about five major sites contribute nearly 80 per cent of output under these arrangements.”

According to him, the directive could disrupt the monitoring framework that ensures cost efficiency and transparency in deepwater operations.

“It would impact us negatively. That is the truth. It is an extremely bad situation and not well thought out. I personally believe that the president was wrongly advised. The Petroleum Industry Act was crafted with deepwater assets development in mind. The idea was to create enabling laws that would attract investors. But this order is already sending a wrong signal to prospective investors. It shows that with just an executive order, a law can be changed overnight without a single debate.

“The new order says royalties and taxes should be remitted to the Federation Account Allocation Committee. But that is a wrong impression that has to be corrected. These monies are already being remitted to FAAC. But the point is that royalties are lifted as barrels and not given to you as cash. That is the way the commercial contracts governing this arrangement are designed. Deepwater assets are governed by production sharing contracts.

“And that means we are sharing production, not cash; barrels of oil, cubic metres of gas. Each party is expected to sell its barrels and get cash. So the crude oil that represents royalties and tax, the agreement signed between NNPC and international oil companies gives the right to take the barrels, sell them and remit the money to FAAC. That is the clear situation of things and it is what has been happening since 2022 after the PIA was signed in August 2021,” he asserted.

The official explained that under existing commercial arrangements, royalties and taxes from PSC operations are remitted to the Federation Account through crude oil lifting rather than direct cash payments.

“These monies are already remitted to FAAC. But the issue is that royalties are lifted as barrels and not given as cash. Deepwater operations are governed by production sharing contracts. We are sharing production, not cash. Each party sells its share and remits the proceeds. That is the arrangement that has been in place since the implementation of the Petroleum Industry Act in 2021,” he added.

He warned that any attempt to change the process could create confusion and operational gaps.

“By the language used in the order, it appears there is an assumption that royalties and taxes are paid in cash. They are not. If this is changed, it means international oil companies would sell government crude and remit directly. That is practically impossible. NNPC represents the government as concessionaire because a sovereign nation cannot enter commercial agreements directly. Our role is to midwife the process from seismic to production and ensure that costs are properly verified,” he said.

The source further expressed concerns about the implications for financing and existing obligations tied to crude-backed loans.

“Some of the production barrels are already tied to loan repayments. The current administration secured about $3.175bn in 2023 with crude as collateral. There are monthly remittance schedules to lenders covering both principal and interest. If all revenues are redirected without clarity, who will meet those obligations? This raises questions for lenders and could affect our ability to raise future capital for major projects,” he said.

He added that the directive could weaken investor confidence in Nigeria’s regulatory and fiscal stability.

“If investors see that agreements can be disrupted by policy shifts, they will hesitate. We are currently pursuing at least three deepwater developments. Some investors are already asking whether this signals instability in policy. This order could send the wrong message to the international community,” he stated.

The Frontier Exploration Fund was created under the Petroleum Industry Act to support hydrocarbon exploration in frontier basins such as the Chad, Sokoto, Anambra and Benue troughs, as part of efforts to boost reserves and attract investment.

Supporters of the directive, however, argued that frontier exploration should be funded through the national budget or private investment, rather than through automatic deductions from federation revenues.

Perspectives from other industry players warned that the transition must be carefully managed to avoid disruptions to ongoing joint venture operations and exploration activities.

They urged the Federal Government to design a transparent funding model for strategic projects while ensuring that operational efficiency and production growth are not compromised.

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