Nigeria’s economy cannot reach its $1 trillion goal without immediate and persistent measures to address issues in the nation’s electrical sector, according to Tony Elumelu, chairman of Transcorp Group.
Elumelu spoke on Wednesday at the company’s annual general meeting (AGM) in Abuja.
The business magnate stated that access to reliable power remains the single most important aspect in modernising the Nigerian economy, especially as the country seeks larger contributions 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.
“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.
“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’
He also said the federal government owed the company N600 billion for electricity supplied to the national grid.
“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 welcomed the current administration’s efforts to resolve liquidity difficulties in the power industry, particularly the presidential metering program and transmission changes.
He emphasised that implementation must be expedited to avoid further deterioration.
Elumelu commented on the company’s success, saying it saw considerable growth inside the group despite economic headwinds.
He stated that Transcorp Plc’s market capitalisation has increased to much about N4.5 trillion from less than N20 billion in 2011, when his group took over the company.
Elumelu said that the company has continuously paid dividends since the takeover, with N1 per share declared for the fiscal year 2024.
“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.
“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.
“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 stated that the company is exploring expanding into other key industries, such as agriculture and renewable energy, based on shareholder recommendations.
Owen Omogiafo, president and group chief executive officer (GCEO) of Transcorp Group, stated that the company is committed to excellence and innovation.
Omogiafo stated that the firm is considering strategic diversification into agriculture, with a focus on high-impact prospects.
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