A British citizen by descent can not pass on their citizenship to their children if the child is born overseas.
The OP is a British citizen by naturalisation, hence he is a British citizen otherwise than by descent and he can pass on his citizenship to his children born anywhere in the world, provided of course that he was naturalised before their birth. The child born to him overseas will be British by descent and will not be able to pass on their British citizenship to their children.
About the advice earlier on about getting an emergency travel document, I am not certain that such a document can be issued as it is issued only to people who already had a passport, which is unavailable (lost or stolen). The ROA is a valid option that the OP could look into.
https://www.gov.uk/emergency-travel-document
You usually can’t get an emergency travel document if you’ve never had a British passport - contact your nearest British embassy, high commission or consulate if you need to travel urgently and can’t apply for a passport in time.