The Chairman of Transcorp Group, Tony Elumelu, has emphasized the need for the Federal Government of Nigeria to harness the electricity sector in order to build a $1 trillion economy.
Speaking at the company’s Annual General Meeting in Abuja, Elumelu highlighted that access to reliable power is crucial for transforming the Nigerian economy, especially as the country seeks to boost its non-oil sector.
Elumelu noted that implementation has been slow, despite President Bola Tinubu’s directive last year to remove obstacles in the power sector.
According to him, “I want to use this opportunity to reiterate that access to electricity remains the single most critical factor in fixing the Nigerian economy, especially as we seek to have the non-oil sector make a greater contribution to our economy,” he said.
“We must, therefore, fix power to fix and transform Nigeria. We know that to grow a $1 trillion economy, electricity must be fixed. That is not the case today.
“The president directed last year that all impediments to the power sector should be removed. But I’m afraid to say that critical people who should help to see the president’s vision come alive are afraid to do so. May I use this opportunity to call on them to help translate the President’s initiative into action?” he added.
Elumelu also raised concerns about the huge debts owed to Transcorp by the Federal Government for electricity supplied to the national grid.
According to him, the government currently owes the group over N600 billion.
“As of now, our Federal Government owes your company over N600 billion. That is $400 million,” he said. “Much as we, patriotic Nigerian investors, are committed to supporting the Federal Government’s efforts in fixing the economy, we have a rather excruciating burden of subsidizing the sector. It requires urgent attention.”
He acknowledged the current administration’s efforts to address liquidity issues in the power sector, such as the Presidential Metering Initiative and transmission reforms, but emphasized the need for swift implementation to prevent further decline.
Despite these challenges, Elumelu reported notable growth within the group, revealing that Transcorp PLC’s market capitalization has increased to over N4.5 trillion, up from less than N20 billion in 2011 when his group acquired the company.
“When we took over this company in 2011, the market cap of Transcorp was actually N2 billion. Today, the group market cap is over N4.5 trillion,” he said.
Commenting on the company’s dividend since the takeover, he added that the company has consistently paid dividends, declaring N1 per share for the 2024 financial year.
“By the time we took over the company in 2011, they had not paid dividends even once. But since we took over, we have consistently paid dividends to shareholders. We have declared a one-naira dividend for 2024. And 2025 will definitely be better than 2024,” he said.
According to Elumelu, Transcorp Power now has a market value of over N2.7 trillion and has fully repaid its FX acquisition loan of $215 million in 2024.
“When we say that Transcorp is about transforming lives, improving lives, and transforming Nigeria and Africa, it is based on the role we play in catalyzing development. Power is critical for the development of every economy,” he said.
He also announced the completion of a new 5,000-capacity event center at Transcorp Hilton, Abuja, aimed at positioning Nigeria as a hub for global events.
“Rwanda, Dubai, and Kenya have become event centers. So, we want to put your country on that map. And you have succeeded,” he said.
Elumelu, however, hinted at expanding into other critical sectors, including agriculture and renewable energy, following recommendations from shareholders.
“They want us to explore the possibility of venturing into critical sectors of the economy that will complement what President Bola Tinubu and his government are doing to improve the lives of Nigerians,” he said.
“We came back from Israel not too long ago, exploring possibilities for investment in the agriculture sector. But beyond agriculture, we’re also interested in renewable energy.”
