Tony Elumelu, Chairman of Transcorp Group, delivered a potent message at the company’s Annual General Meeting in Abuja, emphasizing the inextricable link between reliable electricity and Nigeria’s economic aspirations. He argued that achieving the ambitious goal of a $1 trillion economy hinges on urgently and sustainably addressing the persistent challenges plaguing the power sector. Access to stable power, he asserted, is the single most critical factor for transforming the Nigerian economy, particularly in driving growth within the non-oil sector. Elumelu underscored the urgency of this issue, stating that a robust power sector is a non-negotiable prerequisite for achieving the desired economic scale.
Elumelu expressed concern over the slow pace of implementation despite President Bola Tinubu’s directive to remove all impediments to the power sector. He directly appealed to those responsible for executing the President’s vision, urging them to translate the directive into tangible action. A significant obstacle, he highlighted, is the massive debt owed to Transcorp by the Federal Government for electricity supplied to the national grid, amounting to over N600 billion (approximately $400 million). Elumelu described this as an “excruciating burden” on patriotic Nigerian investors who are committed to supporting the government’s economic agenda, but who are being unfairly burdened by subsidizing the sector. He stressed the need for urgent government attention to resolve this debilitating debt issue.
While acknowledging the current administration’s efforts to address liquidity problems within the power sector, including the Presidential Metering Initiative and transmission reforms, Elumelu emphasized the importance of swift implementation to prevent further deterioration. He warned that delays could exacerbate the existing challenges and undermine the positive impact of these initiatives. The chairman’s remarks served as a call to action, urging both government and private sector stakeholders to collaborate more effectively and accelerate the pace of reforms to ensure the long-term viability and sustainability of the power sector.
Despite the challenges within the power sector, Elumelu highlighted Transcorp’s significant growth trajectory. He proudly announced the company’s remarkable market capitalization growth from less than N20 billion in 2011, when his group acquired the company, to over N4.5 trillion. This impressive growth, he noted, underscores the effectiveness of Transcorp’s strategic vision and its commitment to creating value for its shareholders. He also emphasized the company’s consistent dividend payments since the takeover, a stark contrast to the pre-acquisition period when dividends were not disbursed. For the 2024 financial year, the company declared a dividend of N1 per share, further solidifying its commitment to rewarding its investors.
Elumelu further elaborated on the financial health and strategic achievements of Transcorp Power, highlighting its current market value of over N2.7 trillion and the successful repayment of its $215 million FX acquisition loan in 2024. He reiterated Transcorp’s mission of “transforming lives, improving lives, and transforming Nigeria and Africa,” emphasizing the critical role of power in catalyzing economic development. Beyond its core power business, Elumelu unveiled Transcorp’s expansion into other strategic sectors, including the completion of a new 5,000-capacity event center at Transcorp Hilton, Abuja. This initiative, he explained, aims to position Nigeria as a prominent global events hub, competing with established destinations like Rwanda, Dubai, and Kenya.
Looking forward, Elumelu revealed Transcorp’s exploration of further diversification into crucial sectors such as agriculture and renewable energy, aligning with shareholder recommendations. This strategic move, he explained, is driven by a desire to complement the government’s efforts to improve the lives of Nigerians. The company’s recent exploration of investment opportunities in Israel’s agricultural sector underscores its commitment to this diversification strategy. Elumelu concluded with a resounding invitation to the investing public, encouraging them to join Transcorp’s journey and share in its success. Dr. Owen Omogiafo, President and Group CEO of Transcorp, reinforced the company’s commitment to excellence and innovation, emphasizing their focus on high-impact opportunities within the agricultural sector.
