Tony Elumelu, chairman of Transcorp Group, says Nigeria’s $1 trillion economy target cannot be realised without urgent and sustained efforts to address challenges in the country’s electricity sector.
Elumelu spoke on Wednesday at the company’s annual general meeting (AGM) held in Abuja.
The business mogul said access to reliable power remains the single most critical factor in transforming the Nigerian economy, particularly as the country pushes for increased contribution from the non-oil sector.
“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,” he said.
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“We must, therefore, have the 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.”
Elumelu added that although President Bola Tinubu had directed last year that all impediments to the power sector be removed, the pace of implementation remained slow.
“The president directed last year that all impediments to the power sector should be removed,” he added.
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“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 idea into action?”
‘FG OWES TRANSCORP N600BN FOR ELECTRICITY SUPPLY’
Elumelu also said the federal government owed the company N600 billion for electricity supplied to the national grid.
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“As of date, 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 efforts of the federal government in fixing the economy, we have a rather excruciating burden of subsidising the sector. It requires urgent attention.”
Elumelu acknowledged efforts by the present administration to address liquidity issues in the power sector, including the presidential metering initiative and transmission reforms.
He added that implementation must be swift to prevent further deterioration.
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Speaking on the company’s performance, Elumelu said it experienced significant growth within the group despite economic challenges.
He said Transcorp Plc’s market capitalisation had risen to over N4.5 trillion from less than N20 billion in 2011 when his group took over the company.
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Elumelu added that since the takeover, 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 one day. But since we took over the company, we have consistently paid dividends to shareholders,” he said.
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“We have declared N1 dividend for 2024. And 2025 will definitely be better than 2024.”
According to Elumelu, Transcorp Power now has a market value of over N2.7 trillion and has fully repaid its foreign exchange (FX) acquisition loan of $215 million in 2024.
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“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 catalysing development. Power is critical for the development of every economy,” he said.
He also announced the completion of a new 5,000-capacity event centre at Transcorp Hilton, Abuja, aimed at positioning Nigeria as a hub for global events.
“Rwanda, Dubai, and Kenya have become event centres. So, we want to put your country on that mark. And you have succeeded,” he said.
Elumelu also said the company was considering expanding into other critical sectors, including agriculture and renewable energy, following recommendations from shareholders.
On her part, Owen Omogiafo, president and group chief executive officer (GCEO) of Transcorp Group, said the firm is committed to excellence and innovation.
Omogiafo said the firm is exploring strategic diversification into agriculture, targeting high-impact opportunities.
