North South Power Company Limited’s (NSP) revenue rose by 112% to N138 billion (USD 90mn) for the financial year ended 31 December 2024 as the Naira value of USD-indexed invoices increased.
However, as of 30 June 2025 (H1 2025), revenue growth moderated to 5.2% on the back of a more stable exchange rate. The low-cost structure for hydropower generation, and cost curtailment initiatives underpinned the strong EBITDA margin of 64.3% for the period.
The earnings balanced the solid revenue growth and strong earnings margins against significant exchange volatility arising from USD-indexed concession obligations and naira denominated assets when translated to the group’s functional USD currency.
The reduction in net USD exposure, coupled with stability in exchange rate is expected to reverse the exchange rate losses (2024: N66.6bn, 2023: N31.6bn) and support a return to profitability.
NSP is the sole concessionaire of the 600 megawatts (MW) Shiroro hydro plant under a 30-year concession arrangement, supplying electricity to over 10 million Nigerians and contributing about 8% of the nation’s on-grid supply.
NSP’s power generation declined 7.7% to 2.337GWH in 2024 as the National Control Centre limited the Shiroro Power Plant to two out of the three available turbines during the wet season to improve grid efficiency.
Although the group remains committed to diversifying its power generation, ongoing projects have faced various delays. The rehabilitation of the 30MW Gurara hydro plant is about 90% completed with a Q2 2026 completion date.
The power plant is expected to serve eligible customers under an independent sales arrangement, diversifying the customer base from NBET and improving revenue collections.
To benefit from vertical integration, NSP, through Transgrid, is currently exploring opportunities in electricity distribution via the impending acquisition of West Power and Gas Limited’s 60% equity stake in Eko Disco.
NSP however has substantial concession liability of N391.8 billion as at December 2024, up from N209.7 billion in December 2023.
The increase in the concession liability is due to adverse effect of exchange rate. Interest bearing debt increased to N17.5 billion (2023: N13.4bn), driven by the issuance of N3.6 billion 2-year preference shares and NGN1.8 billion CBN Differentiated Cash Reserve Requirement Facility to fund ongoing projects.
North South Power Company had robust cash holding of N30 billion as of June 2025, which can sufficiently cover debt (excluding concession liabilities) repayments of N5.5 billion over the 18 months to December 2026.
In April 2021, North South Power Company Limited, through a special purpose vehicle, NSP-SPV Powercorp Plc (“NSP-SPV), raised N6.3 billion from the Nigerian debt capital market under its N50 billion Bond Issuance Programme.
The Series 2 Senior Unsecured Bond issue has a tenor of 10 years with a legal maturity date of April 2031 and constitutes direct, unconditional, senior and unsubordinated obligation of the issuer backed by an irrevocable and unconditional undertaking of NSP.
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