Fixing power sector key to Nigeria’s $1 Trillion economy- Tony Elumelu
Tony Elumelu, Chairman of Transcorp Group, has issued a stark warning: Nigeria’s ambitions to grow its economy to $1 trillion will remain a pipe dream unless the country tackles its long-standing electricity crisis with urgency and determination.
Speaking at Transcorp Group’s Annual General Meeting (AGM) held in Abuja on Wednesday, Elumelu emphasized that consistent access to reliable electricity is the cornerstone for national development, particularly as Nigeria looks to diversify its economy beyond oil.
“Access to electricity remains the single most critical factor in fixing the Nigerian economy,” Elumelu declared. “If we are serious about the non-oil sector driving growth, then we must get power right. Unfortunately, that is still not the case today.”
Government Directives, But Little Action
Elumelu pointed to President Bola Tinubu’s 2023 directive to eliminate barriers in the power sector, but expressed disappointment over what he described as sluggish execution.
“The president gave a clear mandate. But those responsible for turning vision into reality are dragging their feet,” he said. “I call on them now—act. Translate the president’s ideas into action.”
FG Owes Transcorp N600 Billion for Power Supply
In a stunning revelation, the Transcorp chairman disclosed that the federal government owes the company over ₦600 billion—approximately $400 million—for electricity already delivered to the national grid.
“We, as patriotic Nigerian investors, are carrying the heavy burden of subsidizing the sector. But this is unsustainable and needs immediate intervention,” he warned.
Despite the challenges, Elumelu acknowledged recent steps taken by the Tinubu administration, including a new metering initiative and reforms in the transmission segment. However, he stressed that the time for policy is over—what’s needed now is swift implementation.
Transcorp’s Soaring Growth Amid Economic Headwinds
Amid the concerns, Elumelu had good news for shareholders. He reported that Transcorp Plc had seen massive growth in market value—surging from under ₦20 billion in 2011 to over ₦4.5 trillion today.
The company also announced a ₦1 per share dividend for the 2024 financial year, continuing a track record of consistent payouts since Elumelu’s takeover in 2011.
Additionally, Transcorp Power, a key subsidiary, now boasts a market capitalization of over ₦2.7 trillion and has fully repaid a $215 million FX acquisition loan this year.
New Mega Event Centre and Expansion Plans
In a bid to further diversify and position Nigeria as a premier destination for international gatherings, Elumelu unveiled a newly completed 5,000-capacity event centre at the Transcorp Hilton in Abuja.
“We’ve seen how countries like Rwanda, Dubai, and Kenya have become global event destinations. Nigeria must be on that map—and we’re making that happen,” he said.
Looking ahead, Elumelu revealed that Transcorp is eyeing new frontiers, including agriculture and renewable energy—sectors that promise both national impact and strong returns. These moves come in response to shareholder recommendations and are part of the group’s broader transformation agenda.
CEO Speaks on Innovation and Diversification
Also speaking at the AGM, Owen Omogiafo, Transcorp Group’s President and CEO, reaffirmed the company’s commitment to excellence, innovation, and sustainable impact.
“We are exploring strategic diversification into agriculture—focusing on areas that deliver maximum impact,” she said.
As Transcorp Group continues its mission of transforming lives and economies across Africa, Elumelu’s message was clear: Nigeria’s future prosperity hinges on getting the power sector right—and the time to act is now.
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