Omotayo Adigun
Tony Elumelu, Chairman of Transcorp Group, delivered a stark warning on Wednesday, stating that Nigeria’s ambition of building a $1 trillion economy cannot be achieved without immediate and sustained actions to resolve the deep-seated challenges within the nation’s electricity sector.
He also revealed that the Federal Government currently owes the Group over N600 billion (approximately $400 million) for power supplied to the national grid.
Speaking at Transcorp’s Annual General Meeting (AGM) held in Abuja, Elumelu emphasized that reliable electricity access remains the “single most critical factor” for transforming Nigeria’s economy, particularly as the country aims to increase the contribution of its non-oil sectors.
“We must, therefore, fix power to fix and transform Nigeria,” he asserted. “We know that to grow a $1tn economy, electricity must be fixed. That is not the case today.”
While acknowledging President Bola Tinubu’s directive from last year to remove all impediments in the power sector, Elumelu expressed concern over the slow pace of implementation.
“Critical people who should help to see the President’s vision come alive are afraid to do so,” he stated, urging them to translate the President’s initiative into tangible action.
Highlighting the financial strain on investors, Elumelu described the substantial government debt as an “excruciating burden,” effectively forcing patriotic Nigerian investors like Transcorp to subsidize the sector. He called for urgent attention to address this liquidity crisis, while also acknowledging ongoing government efforts like the Presidential Metering Initiative and transmission reforms, stressing the need for swift execution to prevent further deterioration.
Despite the sectoral headwinds, Elumelu reported significant achievements for Transcorp Group. He noted the Group’s market capitalization has surged to over N4.5 trillion from less than N2 billion when his team took over in 2011.
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He added that the company has maintained a consistent record of dividend payments since the takeover, declaring N1 per share for the 2024 financial year and expressing optimism for better results in 2025. Furthermore, Transcorp Power now boasts a market value exceeding N2.7 trillion and successfully repaid its $215 million foreign exchange acquisition loan in 2024.
Elumelu also announced the completion of a new 5,000-capacity event centre at the Transcorp Hilton, Abuja, strategically positioned to establish Nigeria as a competitive hub for global events, similar to destinations like Rwanda, Dubai, and Kenya.
Looking ahead, Elumelu disclosed that Transcorp is exploring expansion into other critical sectors, including agriculture – with recent exploratory talks held in Israel – and renewable energy. These potential ventures align with shareholder recommendations and aim to complement the government’s efforts to improve livelihoods.
Dr. Owen Omogiafo, President and Group CEO of Transcorp, reinforced the company’s dedication to excellence, innovation, and strategic diversification, particularly highlighting the exploration of high-impact opportunities within agriculture.
Elumelu concluded with an invitation to the investing public, encouraging them to participate in the company’s growth journey alongside current shareholders.