A consortium led by Transcorp has secured a 60 percent stake in the Abuja Electricity Distribution Company (AEDC), along with interests in power plants in Delta state.
This strategic maneuver propels Transnational Corporation to a prominent position within Nigeria’s power sector, with its market capitalization now exceeding N540 billion.
The momentous approval by the National Council on Privatisation in May 2023 has designated the Transcorp-led Consortium as the new strategic investor in the Abuja Electricity Distribution Company.
This decision ushers in a new era for one of Nigeria’s crucial power distribution companies. With a share of over 15 percent in the nation’s installed power generation capacity, Transcorp extends its influence into the downstream value chain through the acquisition of the AEDC stake.
This acquisition marks a significant undertaking as the company commits to revitalizing Abuja DisCo, a pivotal power distribution entity catering to over 1.32 million customers across franchise areas including the Federal Capital Territory, Niger State, Kogi State, and Nassarawa State.
Taking the helm of this transformative initiative is Christopher Ezeafulukwe, the Managing Director/CEO of Transcorp Power Limited.
The Board of AEDC has bestowed upon him the role of the new Managing Director/CEO, a well-deserved appointment considering Ezeafulukwe’s prior tenure as the MD/CEO of Transcorp Power Ltd, Ughelli – a remarkable 972-MW thermal plant.
Under Ezeafulukwe’s adept leadership, Transcorp Power Ltd has consistently spearheaded advancements in Nigeria’s power sector. Notably, it became the inaugural successor power company from the 2013 power privatization program to be released from post-privatisation monitoring by the National Council on Privatization, surpassing even the Council’s expectations.
Transcorp Group’s acquisition of the Ughelli Power plant in 2013 underscored the Group’s transformative capabilities. The plant’s capacity surged by an impressive 227 percent from 160MW to a staggering 680.83MW within just four years, exceeding the Bureau of Public Enterprise’s (BPE) five-year target of 670MW.
Transcorp Group’s subsidiaries, including Transafam Power Limited and Transcorp Hotels Plc – owners of the esteemed Transcorp Hilton Abuja – consistently demonstrate a commitment to generating both economic and social value. The combined market capitalization of these endeavors surpasses N540 billion, in alignment with the Africapitalism philosophy championed by the Group’s Chair, Tony Elumelu.
Manufacturers Cut Spending on Alternative Energy Sources as Electricity Supply Improves
Nigerian manufacturers reduced their spending on alternative energy sources by 21.25% to N60.4 billion in the first half of 2023, according to the Manufacturers Association of Nigeria (MAN).
This decline is attributed to the increased availability of electricity from the national grid, which improved to 11.3 hours per day, up from 10.2 hours in the same period of 2022.
The report also indicated a slight increase in daily power outages to 4.7 times from 4.4 times in H1 2022.
These improvements in grid electricity availability have positively impacted the manufacturing sector’s energy expenditure, leading to a significant drop from N76.7 billion spent in the second half of 2022.
However, the initial high expenditure on alternative energy sources was driven by skyrocketing diesel prices.
The cost of diesel had surged due to foreign exchange challenges and the implementation of a 7.5% Value Added Tax on Automotive Gas Oil (diesel).
Diesel prices in many states had risen to between N900 and N950 per liter, which threatened the production capacity of numerous manufacturing entities.
The Nigerian Textile Manufacturers Association expressed concerns about the potential closure of textile factories and job losses due to rising energy costs. Textile manufacturers, in particular, found it challenging to afford diesel at such prices.
The Chief Executive Officer of Coleman Technical Industries Limited also highlighted the increased production costs associated with higher diesel prices.
While the improvement in electricity supply is a positive development for manufacturers, the industry remains vigilant about energy costs and their impact on production.
Dangote Group Subsidiaries Contribute N474 Billion in Taxes to Federal Government Over Three Years
In a significant testament to its commitment to corporate citizenship and financial responsibility, three subsidiaries of the Dangote Group have revealed that they paid a substantial total of N474 billion in taxes to the Federal Government over the past three years.
The disclosure was made by Hashem Ahmed, an official representing the multibillion-dollar conglomerate, during the opening ceremony of the 18th Abuja International Trade Fair, which focused on the theme ‘Sustainable financing and taxation as drivers of the new economy.’
The Dangote Group, led by its President Aliko Dangote, stands as not only the largest private-sector employer but also the country’s leading taxpayer. The remarkable N474 billion contribution was primarily made by Dangote Sugar, Dangote Cement, and Dangote Salt.
Also, the group has a longstanding history of extensive financial support, empowerment initiatives, corporate social responsibility programs, sponsorships, and philanthropic endeavors, amounting to several billions of naira.
Hashem Ahmed also expressed the group’s satisfaction with the Federal Government’s commitment to tax reform policies aimed at broadening the tax base and providing essential funding for infrastructure development in the country.
The Minister of Industry, Trade, and Investment, Doris Uzoka-Anite, who spoke at the event, announced the government’s comprehensive plan to support small businesses and startups amid Nigeria’s economic challenges.
The plan includes a N75 billion investment by March 2024 to bolster the manufacturing sector, grants for microbusinesses in every local government, and a N75 billion fund to support up to 100,000 startups and MSMEs at favorable interest rates repayable over 36 months.
The government has also initiated partnerships with tech giants like Microsoft and the African Development Bank, signaling a bright future for Nigeria’s economic growth and innovation.
Dangote Industries Set to Revolutionize Agriculture Industry with Mega Merger, Creating Dangote Foods Plc
Dangote Industries Limited has unveiled plans for a merger that will give rise to a formidable entity known as Dangote Foods Plc.
This colossal conglomerate is poised to transform the agriculture industry and enhance food security across the nation.
The merger will combine three subsidiaries of Dangote Industries Limited, including Dangote Sugar Refinery, Dangote Salt, and Dangote Rice, resulting in a diversely profitable mega-company.
The fusion, scheduled for completion by the end of 2023 pending regulatory approvals, promises to yield significant benefits for all stakeholders, notably shareholders.
Dangote Sugar Refinery’s Group Managing Director and CEO, Mr. Ravindra Singhvi, highlighted the merger’s strategic importance, stating its potential to create substantial shareholder value.
The amalgamation will not only generate cost-saving synergies but also expand product offerings and revenue streams.
Dangote Foods Plc is set to become a powerhouse in the market, boasting a wide array of products, including sugar, salt, tomato, and rice, among others. This merger will facilitate broader distribution capabilities and increased operational efficiency through synergy.
The journey towards this monumental merger began when Dangote Sugar Refinery notified the Nigerian Exchange Limited of its intention to merge with NASCON Allied Industries Plc and Dangote Rice Limited, both subsidiaries of Dangote Industries Limited.
This move marks a pivotal moment in the corporate history of Nigeria, with Dangote Industries Limited reaffirming its commitment to driving growth, innovation, and food security for the nation.
As regulatory approvals progress, Dangote Foods Plc is poised to emerge as a prominent player in Nigeria’s agricultural landscape, ultimately paving the way for a brighter and more sustainable future for the country.
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