Business
Fixing Power Key to Building a $1trn Economy – Elumelu
Chairman of Transcorp Group, Mr. Tony Elumelu, has emphasized that Nigeria’s aspiration to achieve a $1 trillion economy hinges critically on resolving the country’s persistent electricity challenges.
Speaking on Wednesday at the company’s Annual General Meeting in Abuja, Elumelu said that reliable electricity remains the most crucial factor for economic transformation, especially as Nigeria seeks to boost contributions from the non-oil sector.
“Access to electricity remains the single most critical factor in fixing the Nigerian economy, especially as we seek greater non-oil sector contributions,” he said. “To grow a $1 trillion economy, electricity must be fixed. That is not the case today.”
Elumelu pointed out that despite President Bola Tinubu’s directive in 2023 to eliminate barriers in the power sector, progress has been sluggish. He urged key stakeholders to act decisively to actualize the President’s vision.
“The President gave clear orders to remove all impediments to the power sector. Unfortunately, some of those responsible for implementation appear hesitant. I call on them to turn this vision into reality,” he said.
He also raised alarm over the Federal Government’s outstanding debt to Transcorp for electricity supplied to the national grid, revealing the government owes the group over N600 billion (approximately $400 million).
“As patriotic investors, we are committed to supporting the economy, but we currently bear the heavy burden of subsidising the power sector. This cannot continue unchecked,” Elumelu stated.
While commending the Tinubu administration’s recent steps—such as the Presidential Metering Initiative and transmission reforms—he stressed the need for faster implementation to avoid further strain on the sector.
Despite these industry-wide issues, Elumelu highlighted Transcorp’s remarkable growth. The group’s market capitalization has risen dramatically from less than N20 billion in 2011 to over N4.5 trillion today.
“When we acquired this company in 2011, its market cap was N2 billion. Today, it stands at over N4.5 trillion,” he noted.
He also announced a N1 dividend per share for the 2024 financial year, reaffirming the company’s consistent dividend payments since the takeover. “We’ve paid dividends every year since taking over. 2025 will be even better,” he added.
Elumelu shared that Transcorp Power now has a market value exceeding N2.7 trillion and has successfully repaid its $215 million foreign acquisition loan in 2024.
Beyond power, the group is expanding its footprint. Elumelu revealed the completion of a new 5,000-capacity event center at Transcorp Hilton, Abuja, designed to help position Nigeria as a destination for international events.
“Rwanda, Dubai, and Kenya have become global event centers. It’s time Nigeria joins that list—and we’re making it happen,” he said.
Looking ahead, Elumelu said the company is eyeing further investments in agriculture and renewable energy, based on shareholder feedback and alignment with national development goals.
“We recently visited Israel to explore opportunities in agriculture. We’re also keen on renewable energy, as part of our strategy to support the government’s efforts to improve lives,” he said.
In a closing message, Elumelu invited more investors to join the Transcorp journey. “Our shareholders are excited—and so should the wider investment community be. Now is the time to come on board.”
Transcorp’s President and Group CEO, Dr. Owen Omogiafo, reaffirmed the group’s commitment to innovation, excellence, and strategic diversification into high-impact sectors like agriculture, underscoring the company’s long-term vision for national development.
