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Transcorp Hotels posts N97bn revenue in 2025, declares N1.30 final dividend

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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.

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“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.

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“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.

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“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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Hardship: Labour pushes N154,000 minimum wage

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The National Public Service Negotiating Council of the Organised Labour has formally demanded a N154,000 minimum wage, a 120 per cent upward review of salaries and allowances for public workers in Nigeria.

The new demand, according to the union, is to mitigate what it described as the “life of servitude” currently being experienced in the country.

The demand was contained in a letter addressed to the Office of the Head of the Civil Service of the Federation, dated March 12, 2026, with reference number JNPSNC/Gen/Cor/Vol 1/163.

The demand was titled “Urgent need for the upward review of salaries and allowances of workers in the Nigerian public service and commendation for the approval of gratuity payment to retiring workers.”

The letter was jointly signed by the National Chairman of JNPSNC, Benjamin Anthony, and the National Secretary, Olowoyo Gbenga.

The JNPSNC premised its demand on the outcome of an exhaustive meeting of the council held on Monday, March 9, 2026, at the AUPCTRE National Secretariat, Wuse Zone 4, Abuja, Federal Capital Territory.

The letter read, “The National leadership of Joint National Public Service Negotiating Council writes to respectfully but firmly call the attention of your esteemed office to the urgent necessity for an upward review of salaries and allowances of all serving Public Servants in the Nigerian Public Service.

“Despite their immense contributions, public service workers continue to face severe economic hardship due to the rising cost of living and the declining purchasing power of their earnings.”

The council noted that over the years, Nigeria has experienced unprecedented economic pressures characterised by high inflation, increased fuel prices, rising transportation costs, and escalating prices of food items, housing, healthcare, and education.

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“The above realities have significantly eroded the real value of workers’ salaries and have made it increasingly difficult for many public servants to maintain a decent standard of living.

“It is important to note that the last major adjustments in workers’ remuneration have not sufficiently kept pace with the current economic realities.

“Many workers are now struggling to meet basic financial obligations, which has inevitably affected the morale, motivation, and overall productivity within the Public Service.”

The council stated that the national leadership of the Joint National Public Service Negotiating Council, therefore, strongly advocates an immediate and comprehensive review of the existing salary structure and allowances to reflect current economic conditions and ensure fairness, equity, and sustainability in workers’ remuneration.

“An upward review of workers’ salaries and allowances is a desideratum,” it stated.

It further noted that workers in the Nigerian Public Service had continued to demonstrate remarkable patience, professionalism, and commitment to their duties despite the prevailing economic difficulties.

However, it stressed that concrete steps must now be taken to safeguard their welfare and dignity.

In light of the foregoing, the council called on the office of the Head of the Civil Service of the Federation to urgently initiate the necessary processes for the upward review of salaries and allowances of public servants in Nigeria.

The council asked the Office of the Head of Service to initiate immediate negotiations and direct the National Salaries, Income and Wages Commission and relevant committees to begin immediate discussions with the Joint National Public Service Negotiating Council to negotiate for an upward review of salaries and allowances.

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“Consequently, new salary templates should be developed such that the minimum salary payable to an officer on Grade Level 01 Step 1 shall be N154,000 per month for Federal Public Servants (120% increase in Salaries and allowances).

“Harmonise Wages: ensure that the upward review is applied across all Ministries, Departments, and Agencies (MDAs), and strongly encourage implementation at sub-national levels to ensure equity;

“Implement Cost-of-Living Adjustments: Introduce automatic, periodic salary and allowance adjustments that align with inflation rates to prevent the recurring lag between wage review cycles; and prioritise welfare components: in addition to basic salary, implement non-monetary incentives such as subsidised transportation and affordable housing for civil servants,” the letter noted.

The council emphasised that a timely upward review of public servants’ salaries and allowances is not merely an economic imperative but a social necessity to ensure the sustenance of the workforce, maintain industrial harmony, and improve the efficiency of public service delivery.

It also reiterated its commitment to constructive dialogue with the government.

“We remain committed to constructive dialogue, resourceful engagement and collaboration with the government toward achieving a fair, sustainable, and mutually beneficial outcome for all stakeholders.

“We trust that this request will receive the prompt attention and action it deserves in the interest of workers, the Public Service as an institution and the nation at large; so as to nip in the bud possible escalation that may nosedive into spontaneous social unrest,” it added.

The national leadership of the council commended President Bola Tinubu for approving 100 per cent gratuity payment to retiring federal public servants.

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The commendation was conveyed through the Head of the Civil Service of the Federation, Didi Esther Walson-Jack.

According to the council, the approval represented a major step towards improving the welfare of retiring public servants.

“From the perspective of the national leadership of the Joint National Public Service Negotiating Council, the approval is not only a positive development but also a bold step towards ensuring that retiring public servants escape the life of servitude and serfdom often being experienced when out of public service which is always characterised by impoverish life after service,” it said.

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Refineries spend N5.7tn on foreign oil despite naira-for-crude policy

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Despite its status as Africa’s largest crude oil producer, Nigeria imported crude oil worth a staggering N5.734tn between January and December 2025 as domestic refineries grappled with persistent feedstock shortages, exposing a deepening supply paradox in the country’s oil sector, The PUNCH reports.

This comes in spite of the Federal Government’s much-publicised naira-for-crude policy designed to prioritise local supply.

Yet, even as the policy sought to channel crude to local refineries, Nigeria produced 530.41 million barrels and earned about N55.5tn from crude oil sales in 2025, highlighting a stark disconnect between robust upstream output and domestic supply shortages.

Data obtained from the National Bureau of Statistics and analysed by our correspondent on Tuesday, showed that the surge represents a dramatic shift from 2024, when no crude imports were recorded, indicating a 100 per cent increase year-on-year.

An analysis of the NBS Foreign Trade in Goods Statistics report revealed that crude oil imports, classified under “Petroleum oils and oils obtained from bituminous minerals, crude”, became one of Nigeria’s major import items in 2025, driven by supply shortages to domestic refineries.

In the first quarter alone, Nigeria imported crude worth N1.19tn, underscoring the urgency with which refinery operators turned to alternative feedstock sources.

The figure rose sharply by about 37.8 per cent to N1.64tn in the second quarter, before climbing further by 46.5 per cent to N2.403tn in the third quarter, reflecting intensifying domestic supply constraints.

However, imports dropped steeply by approximately 79.2 per cent to N499.75bn in the fourth quarter, suggesting a late-year easing in demand or improved local availability, though still indicative of a volatile and inconsistent crude supply environment throughout the year.

Although the NBS report did not name specific refineries, the pattern reflects the broader systemic failure in aligning domestic crude production with local refining demand.

A further breakdown of the figures shows wide monthly fluctuations in crude imports, reflecting unstable supply conditions in the domestic market.

Refineries imported crude worth N335.69bn in January, rising by 32.6 per cent to N445.27bn in February, before declining by 8.5 per cent to N407.29bn in March.

Imports dipped slightly to N335.31bn in April but surged dramatically by 116 per cent to N724.23bn in May, suggesting heightened supply constraints locally.

In June, imports fell by 19.5 per cent to N582.94bn, before spiking to a yearly peak of N1.28tn in July, an increase of about 120 per cent, marking the highest monthly import bill in the year.

This was followed by a 51.8 per cent drop to N619.24bn in August, and further declines to N499.41bn in September and N407.08bn in October.

Imports plunged sharply by 77.2 per cent to N92.67bn in November, before dropping to zero in December, indicating a temporary easing of demand or improved local supply towards year-end.

Overall, the trend underscores a volatile supply environment, with refineries forced to adjust sourcing strategies month by month.

Findings by The PUNCH indicate that local refineries, ranging from modular plants to mega facilities such as the Dangote Refinery, are increasingly turning to international markets due to persistent challenges in sourcing crude domestically.

The refineries cite a combination of structural and commercial factors behind the development.

This was confirmed by the Crude Oil Refinery-owners Association of Nigeria, which noted that refineries turn to imports for survival and increased production capacity.

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The CORAN Publicity secretary, Eche Idoko, stated in an interview that domestic refiners within the supply chain have been marginalised.

He confirmed that for several months, no allocation has been received under the Domestic Crude Oil Supply Obligation framework, naira for crude policy or through any other special arrangements.

He said, “Local refiners, especially the modular refineries, have not been getting crude, I mean zero allocation, under the DCSO or any other special arrangement.”

He said the DCSO implementation has been hampered by the ‘willing buyer, willing seller’ policy

Idoko said a modular refinery like Opac couldn’t get crude, and it stopped production for months.

According to Idoko, local refineries have the capacity to produce more than their current output, blaming the lack of enough feedstock for the current output. “We have the capacity to produce far more than what we are producing now. The challenge has always been inadequate feedstock,” he stated.

Idoko stated that some modular refineries like OPAC produce about 10 per cent of their capacities, while some shut down due to a lack of crude oil.

“A good example, the OPAC refinery has a 10,000-barrel capacity. It produces just about 1,000, and it’s not consistent. Sometimes, the refinery is shut down for months because of the unavailability of crude. The Dangote refinery was recently producing at 60 per cent of its total capacity due to the unavailability of feedstock.”

Earlier this month, Dangote Petroleum Refinery & Petrochemicals also cleared the air on the crude oil supply being received from the Nigerian National Petroleum Company under the naira-for-crude arrangement, disclosing that it receives five cargoes of crude monthly which are paid for in naira.

However, it stated that this falls significantly short of the 13 cargoes required each month to meet domestic demand.

The refinery in a statement issued further explained that the shortfall of eight cargoes is being bought from other sources outside the country.

In addition, it stated that the NNPC cargoes are priced at international market rates plus a premium.

As a result, the company said it is compelled to source additional crude from local and international traders, procuring foreign exchange at prevailing open market rates to complete the purchases.

Further investigations revealed that International Oil Companies operating in Nigeria have been reluctant to prioritise domestic crude supply, largely due to better pricing and fewer regulatory constraints in the international market.

Experts say IOCs prefer exporting crude under long-term contracts denominated in dollars, rather than selling locally under conditions that may involve pricing benchmarks, currency risks, or policy uncertainties.

They added that disputes over pricing frameworks, particularly when crude is sold at a premium and third-party influence, have further complicated domestic supply arrangements.

Similarly, an alternative solution provided by the government through the naira-for-crude policy to allow domestic refineries to purchase crude oil in local currency, reduce pressure on foreign exchange, and ensure a steady feedstock supply hasn’t met expectations.

The policy introduced in October 2024 gained prominence with the ramp-up of refining capacity, particularly from the Dangote Refinery, and was expected to mark a turning point in Nigeria’s downstream sector.

Under the arrangement, refiners would pay for crude in naira, while the government would manage foreign exchange implications through the Nigerian National Petroleum Company Limited.

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However, the 2025 import figures suggest that the policy has not fully achieved its core objective.

This situation is driven by several structural challenges, including a mismatch between allocated crude and refinery demand, persistent pricing disagreements over benchmark terms, concerns among upstream producers about naira volatility, and existing forward sales and export commitments that limit the volume of crude available for domestic refining.

The NBS data further showed that Nigeria sourced its imported crude primarily from African countries such as Algeria, Angola while imports from the United States of America accounting for the largest share.

This trend reflects the growing integration of global crude markets, where refiners prioritise reliability and quality over geographic proximity.

Commenting, energy analysts have faulted the implementation of the Federal Government’s naira-for-crude policy, arguing that it has failed to significantly improve domestic crude supply or reduce fuel prices.

The Chief Executive Officer of Petroleumprice.ng, Jeremiah Olatide, said the policy has delivered little impact since its introduction in 2024, as most refineries continue to rely heavily on imported crude.

Speaking in a telephone interview with The PUNCH, he said, “For me, the naira-for-crude policy that was initiated in 2024 has not yielded any reasonable output because the Dangote refinery still sources about 65 to 70 per cent of its feedstock from abroad, while about 95 per cent of modular refineries also source their crude outside the naira-for-crude initiative.

“So, the initiative, for me, is not effective, and that is why we are still seeing a large inflow and importation of crude oil in 2025. In turn, prices at the depot and pump have not been different from when we were fully importing refined products.”

He noted that while the coming on stream of large-scale refining capacity has improved product availability, it has not translated into price relief for consumers.

“The only difference now is that we no longer have supply fears; there is availability of products. But in terms of pricing, I would say the naira-for-crude policy has not translated into lower prices at the depot or pump,” he added.

Jeremiah attributed this to the continued reliance on international pricing benchmarks, even for locally supplied crude.

“Dangote’s crude from the Nigerian National Petroleum Company is still priced internationally and benchmarked to Brent. So it is not as effective as the name implies. The refinery still has to pay based on international prices when converted,” he said.

He argued that to achieve meaningful price stability, the government may need to rethink its approach.

“For me, I feel that the subsidy removal in 2023 should be replaced with another form of subsidy, but this time targeted at refineries. The crude supplied to local refineries should be subsidised. That is the only way prices can be stabilised and Nigerians will feel the impact at the pump,” he stated.

He added that the current arrangement contradicts provisions of the Petroleum Industry Act, which prioritises domestic crude supply.

“The agreement should be revisited. The policy is not effective, and Nigerians are not supposed to be buying fuel at high prices, considering that we have crude and a giant refinery. Local refineries should not struggle to access crude at all,” he said.

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Similarly, a Professor of Energy, Dayo Ayoade, said structural issues in Nigeria’s upstream sector have made it difficult for policies like naira-for-crude to succeed in practice.

“We have deeply unreliable supply from NNPC, largely because the company forward-sold crude oil to secure loans for the government in the past,” he said.

“Also, for over 19 years while the Petroleum Industry Bill was being delayed, there was significant underinvestment in the upstream sector. When you combine this with government’s priority of earning foreign exchange and servicing debts, you will see that, in practice, initiatives like naira-for-crude are more on paper than reality.”

He explained that Nigeria’s current production levels are insufficient to meet both export obligations and domestic refining demand.

“NNPC must have crude oil that it can supply, but it doesn’t. By the time international oil companies take their allocations under joint ventures and production sharing contracts, very little is left,” he said.

“Take the 650,000 barrels per day Dangote refinery, for instance. It would require about 650,000 barrels daily to operate at full capacity. That is not feasible at the moment. That crude simply does not exist in available volumes right now.”

Ayoade further noted that crude importation is built into the operational model of modern refineries.

“We also need to understand that the configuration of the refinery requires a blend of different crude grades. Nigeria’s light sweet crude alone is not sufficient, so some level of importation is part of the refinery’s design and business plan,” he said.

On the outlook for 2026, he warned that the trend of crude importation by domestic refineries is likely to persist.

“This pattern will likely will continue in 2026 because issues like logistics bottlenecks, pipeline vandalism, oil theft, and delayed field development cannot be solved in a short time,” he said.

“As long as crude oil accounts for over 95 per cent of our foreign exchange earnings and the government prioritises exports, we will continue to see this pattern for a few more years.”

He added, “That is why I am always cautious when people talk about new refineries coming on stream. The real question is: where will the crude oil come from? That is the fundamental issue.”

Nigeria has long relied on imported refined petroleum products due to inadequate domestic refining capacity. However, recent investments in local refineries were expected to reverse this trend by boosting in-country processing of crude oil.

The Petroleum Industry Act introduced provisions aimed at ensuring a steady supply of crude to domestic refineries, including domestic crude supply obligations.

However, implementation challenges, legacy contractual commitments, and market realities have slowed progress, leaving refiners to navigate supply gaps through imports.

The N5.734tn crude import bill in 2025 now highlights a new phase in Nigeria’s oil sector paradox, where the challenge is no longer just refining capacity, but access to crude itself.

As the country pushes to maximise value from its hydrocarbon resources, the ability to align upstream production with downstream demand will remain critical to achieving true energy independence.

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FG unveils ‘fly now, pay later’ credit scheme for domestic flights

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The Federal Government has introduced a new consumer credit product, “Fly Now, Pay Later,” aimed at making domestic air travel more accessible to Nigerians.

The Nigerian Consumer Credit Corporation disclosed this in an announcement posted on its X handle on Tuesday, stating that the initiative would allow eligible customers to book local flights and repay the cost over time through structured financing.

According to CREDICORP, the scheme is designed to remove the upfront financial barrier that often delays important trips for many Nigerians.

“Through this initiative, eligible customers can book domestic flights today and repay the cost over time through structured financing, removing the upfront barrier that often delays important trips,” the statement read.

CREDICORP said the solution is being delivered in partnership with MyVisaro and Alert Microfinance Bank as part of efforts to expand access to responsible consumer credit.

To apply, the corporation urged interested individuals to visit visaro.ng and book a flight to any city in Nigeria.

 

FG unveils ‘fly now, pay later’ credit scheme for domestic flights

“At CREDICORP, we remain committed to expanding responsible consumer credit and enabling Nigerians live better now, including flying locally. Fly now. Pay later. Opportunity shouldn’t wait,” it added.

The corporation noted that the initiative aligns with its broader mandate to promote financial inclusion and improve access to essential services through innovative credit solutions.

The launch comes amid growing concerns over the rising cost of domestic air travel in Nigeria, with many citizens facing affordability challenges despite increasing demand for intra-country connectivity.

During the 2025 Yuletide period, one-way fares on some domestic routes rose by about.

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Airlines have attributed the high ticket prices to the rising cost of aviation fuel, foreign exchange constraints, and other operational expenses.

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