Geregu Power Plc has signed an agreement with Siemens Energy for three generator transformers. The deal was announced on 23 October 2026 in a filing with the Nigerian Exchange Limited. The transformers will serve the GT11, GT12 and GT13 generating units at the Geregu Power Plant in Ajaokuta, Kogi State. The goal is to reduce equipment-related outages and strengthen the plant’s connection to the national grid.
Geregu Power operates three Siemens V94.2 gas turbine units with a combined installed capacity of 435 megawatts. The company has a long relationship with Siemens. In 2014, it awarded Siemens a $94 million overhaul contract. In May 2024, it signed a memorandum of understanding to upgrade the Geregu 1 plant from 435MW to 500MW. The current transformer deal builds on that partnership. It focuses on infrastructure, not capacity expansion.
Siemens Energy will design, manufacture, test and deliver the equipment. Geregu will participate in Factory Acceptance Testing before shipment. The company did not disclose the contract value, delivery schedule or commissioning date. The procurement is part of Geregu’s investment in maintenance and modernisation. The company said it aims to minimise the risk of equipment failure and support safe, reliable operations.
The deal follows a sharp decline in revenue. Geregu’s unaudited financial statements for the six months ended 30 June 2026 show total revenue fell 78.7% to ₦18.66 billion, compared with ₦87.63 billion in the same period of 2025. Revenue from energy sold dropped 78.1% to ₦12.46 billion, from ₦56.77 billion. Capacity-charge revenue declined 79.9% to ₦6.20 billion, from ₦30.87 billion. Second-quarter revenue fell to ₦419.13 million, compared with ₦55.87 billion a year earlier. Half-year profit after tax fell approximately 88% to ₦2.54 billion, from ₦20.27 billion.
The decline followed a major turbine maintenance programme that disrupted operations. The company also defaulted on bond payments, according to Nairametrics. The transformer procurement adds context to Geregu’s investment in equipment reliability after the weak performance.
Winners: Siemens Energy, which gains a contract. Geregu Power, if reliability improves. The national grid, if supply stabilises. Maintenance contractors, who gain work. Losers: Geregu Power, whose revenue collapsed. Shareholders, who face lower profits. Bondholders, who faced default. The grid, which lost capacity during maintenance. Consumers, if supply was disrupted.
Bottom Line: Geregu signed a transformer deal. The revenue decline is steep. The maintenance disrupted operations. The new equipment targets reliability. The company must stabilise earnings. The grid needs stable supply. The deal is a step. Delivery is the test.