While acknowledging some steps taken by the current administration to stabilize the power sector—such as the Presidential Metering Initiative and reforms in transmission—Elumelu maintained that swift and effective execution is necessary to prevent further decline.
Abuja, Nigeria – Chairman of Transcorp Group, Mr Tony Elumelu, has reiterated that Nigeria’s goal of building a $1 trillion economy cannot be achieved unless the nation urgently addresses the persistent challenges in the electricity sector.
Speaking during the Annual General Meeting (AGM) of Transcorp Group held in Abuja on Wednesday, Elumelu emphasized that consistent and reliable access to electricity is the single most critical factor for economic growth, especially as the country seeks to diversify its economy beyond oil.
“To truly transform the Nigerian economy and drive non-oil sector growth, we must fix electricity,” Elumelu stated. “We cannot build a $1 trillion economy without resolving the power issues that continue to stifle productivity and discourage investment.”
Elumelu expressed concern over the slow pace of implementing power sector reforms, despite a presidential directive issued in 2023 to eliminate bottlenecks. 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,” he added.
The Transcorp boss also decried the financial strain caused by the government’s indebtedness to power producers. He disclosed that the Federal Government currently owes Transcorp over N600 billion—approximately $400 million—for electricity supplied to the national grid.
“We, as patriotic investors, continue to subsidize the power sector under intense financial pressure,” Elumelu said. “This debt burden is unsustainable and demands urgent government intervention.”
While acknowledging some steps taken by the current administration to stabilize the power sector—such as the Presidential Metering Initiative and reforms in transmission—Elumelu maintained that swift and effective execution is necessary to prevent further decline.
Despite the sector’s hurdles, Elumelu announced strong financial performance across the Transcorp Group. He noted that Transcorp PLC’s market capitalization had surged from just N2 billion in 2011 to over N4.5 trillion as of 2024.
“Back in 2011, the company had never paid dividends,” he recalled. “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 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.
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.
“Just like Dubai, Rwanda, and Kenya, we want Nigeria to be known as a global event hub—and we’re making that happen,” 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,” he disclosed. “Beyond that, we’re keen on entering the renewable energy space, which will further complement government efforts to improve livelihoods.”
Addressing potential investors, Elumelu extended an open invitation: “Our shareholders are enjoying tremendous value, and it’s time for the wider investment public to be part of this success story.”
Transcorp President and Group CEO, Dr Owen Omogiafo, 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.
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