Mr. Tony O. Elumelu, one of Nigeria’s leading entrepreneurs and Chairman of Transcorp Group, has restated that the Federal Government needs to urgently address the persistent challenges facing the nation’s power sector if Nigeria’s goal of building a $1 trillion economy is to be achieved.
Elumelu raised the very important issues Wednesday at the 19th Annual General Meeting of Transnational Corporation (Transcorp Plc), in Abuja, Nigeria.
“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 greater contributions to our economy. We cannot build a $1 trillion economy without resolving the power issues that continue to stifle productivity and discourage investment. So, therefore, we must therefore have the power to fix and transform Nigeria and truly transform the Nigerian economy and drive non-oil sector growth,” Elumelu stated.
The Transcorp Plc Chairman highlighted the main dominant challenges of the power sector namely, chronic liquidity shortfalls in the electricity market, unstable grid performance and gas availability which he claimed have remained unresolved 12 years after some private concerns invested heavily in the sector.
Elumelu acknowledged that President Bola Tinubu’s administration had taken some steps to reform the sector, including efforts to clear GenCo debts, expand metering under the Presidential Metering Initiative (PMI), and separate Independent System Operations from Transmission System Operations.
However, he expressed concern over the slow pace of implementing power sector reforms, despite the presidential directive issued in 2023 to eliminate bottlenecks while he urged relevant stakeholders to take concrete actions that reflect the President’s vision for a revitalized energy sector.
“The President directed last year that all impediments to the power sector should be removed. Unfortunately, key figures responsible for implementing this directive appear reluctant to act. I urge them to support the actualization of this crucial initiative. While the intention behind this initiative is very good, these intentions can only be achieved through ruthless, result-oriented and timely execution,” Elumelu said.
Elumelu then warned that the country’s electricity supply system will collapse if the federal government fails to urgently pay debts owed to power generation companies and accelerate long-delayed sector reforms.
He noted that Transcorp Plc alone is owed over N600 billion —approximately $400 million— for electricity already generated and supplied to the national grid.
“As of date, our federal government owes your company over N600 billion. That is $400 million,” Elumelu said to the shareholders. “Much as we, as patriotic Nigerian investors, are committed to supporting the effort of the federal government facing the economy, we have another excruciating burden of subsidising the sector as producers who do not get paid for the electricity we generate. We put it on the grid, and it is consumed on the grid. This, you will ask, is totally not sustainable. It requires urgent attention,” he added.
Despite these hurdles, Elumelu announced strong financial performance across the Transcorp Group.
He noted that Transcorp Plc market capitalization had surged from just N2 billion in 2011 to over N4.5 trillion as of 2024.
“Transcorp Group today, the market value of your company’s listed entities is $3billion (N4.5trillion). When we took over the company in 2011, the market cap was less than N20 billion, we have grown value together. Your company indeed is growing. Back in 2011, the company had never paid dividends. Today, we have declared a N1 per share dividend for the 2024 financial year, and I can assure you that 2025 will be even better,” he recalled.
Elumelu further revealed that Transcorp Power, a subsidiary of the Group, now commands a market value exceeding N2.7 trillion and had fully repaid its $215 million foreign exchange loan earlier in 2024.
“Last year, we took Transcorp Ughelli Power public and the value today is in excess of N2.7 trillion. Despite the challenging economic climate, Transcorp Power has fully repaid the $215m loan it took in 2014 for the acquisition of Transcorp Power Ughelli. When we say Transcorp is about improving lives and transforming Nigeria and Africa, it is based on the role we play in catalysing development. Power is critical for the development of every economy,” he stated.
Elumelu also urged stronger investment in gas infrastructure, warning that gas supply constraints continue to hinder power generation across the country.
He pointed to the ongoing OB3 pipeline project, designed to link the eastern and western gas networks, as a critical intervention that needs to be completed.
Highlighting the company’s broader developmental efforts, Elumelu announced the completion of a 5,000-capacity event centre at the Transcorp Hilton in Abuja.
He said the new facility was part of the company’s vision to position Nigeria as a prime destination for global events.
“We believe Nigeria should be able to attract global, international, world-class events and you cannot achieve this if you do not have an event centre that can accommodate a huge number of people. Rwanda, Dubai and even Kenya have become hubs for events, so we want to put your country on that map, and we have succeeded in doing so and the Transcorp Event Centre is now open, and people are booking to use the facility,” he said.
Elumelu also shared plans for strategic expansion into other critical sectors, including agriculture and renewable energy.
He explained that these areas align with both shareholder recommendations and the federal government’s push for economic transformation.
“We recently visited Israel to explore investment opportunities in agriculture. Beyond that, we are keen on entering the renewable energy space, which will further complement government efforts to improve livelihoods,” the Transcorp Chairman disclosed.
Dr Owen Omogiafo, Transcorp President and Group CEO, also spoke at the AGM, reaffirming the firm’s dedication to innovation, excellence, and diversification.
She noted that the group is actively identifying high-impact investment opportunities, particularly in agriculture.
“We remain committed to transforming Africa through strategic investments that unlock value and improve lives,” Omogiafo said.
With an ambitious vision and continued financial growth, Transcorp Group is positioning itself as a key player in driving Nigeria’s economic renaissance.
