Omotayo Adigun
Tony Elumelu, Chairman of Transcorp Group, delivered a stark warning on Wednesday, stating that Nigeria’s ambition of constructing a $1 trillion economic system can’t be achieved with out instant and sustained actions to resolve the deep-seated challenges inside the nation’s electrical energy sector.
He additionally revealed that the Federal Authorities at present owes the Group over N600 billion (roughly $400 million) for energy equipped to the nationwide grid.
Talking at Transcorp’s Annual Basic Assembly (AGM) held in Abuja, Elumelu emphasised that dependable electrical energy entry stays the “single most important issue” for reworking Nigeria’s economic system, notably because the nation goals to extend the contribution of its non-oil sectors.
“We should, subsequently, repair energy to repair and rework Nigeria,” he asserted. “We all know that to develop a $1tn economic system, electrical energy have to be mounted. That isn’t the case in the present day.”
Whereas acknowledging President Bola Tinubu’s directive from final yr to take away all impediments within the energy sector, Elumelu expressed concern over the sluggish tempo of implementation.
“Vital individuals who ought to assist to see the President’s imaginative and prescient come alive are afraid to take action,” he acknowledged, urging them to translate the President’s initiative into tangible motion.
Highlighting the {financial} pressure on buyers, Elumelu described the substantial authorities debt as an “excruciating burden,” successfully forcing patriotic Nigerian buyers like Transcorp to subsidize the sector. He known as for pressing consideration to deal with this liquidity disaster, whereas additionally acknowledging ongoing authorities efforts just like the Presidential Metering Initiative and transmission reforms, stressing the necessity for swift execution to forestall additional deterioration.
Regardless of the sectoral headwinds, Elumelu reported vital achievements for Transcorp Group. He famous the Group’s market capitalization has surged to over N4.5 trillion from lower than N2 billion when his group took over in 2011.
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He added that the corporate has maintained a constant report of dividend funds for the reason that takeover, declaring N1 per share for the 2024 {financial} yr and expressing optimism for higher leads to 2025. Moreover, Transcorp Energy now boasts a market worth exceeding N2.7 trillion and efficiently repaid its $215 million international alternate acquisition mortgage in 2024.
Elumelu additionally introduced the completion of a brand new 5,000-capacity occasion centre on the Transcorp Hilton, Abuja, strategically positioned to determine Nigeria as a aggressive hub for world occasions, much like locations like Rwanda, Dubai, and Kenya.
Wanting forward, Elumelu disclosed that Transcorp is exploring growth into different vital sectors, together with agriculture – with latest exploratory talks held in Israel – and renewable power. These potential ventures align with shareholder suggestions and intention to enhance the federal government’s efforts to enhance livelihoods.
Dr. Owen Omogiafo, President and Group CEO of Transcorp, bolstered the corporate’s dedication to excellence, innovation, and strategic diversification, notably highlighting the exploration of high-impact alternatives inside agriculture.
Elumelu concluded with an invite to the investing public, encouraging them to take part within the firm’s development journey alongside present shareholders.
