Elumelu: Fixing Power Sector is Key to Nigeria’s $1 Trillion Economic Goal

Chairman of Transcorp Group, Mr. Tony Elumelu, has emphasized that Nigeria’s aspiration to build a $1 trillion economy will remain unattainable unless the country urgently addresses its power supply challenges.

Speaking during the company’s Annual General Meeting in Abuja, Elumelu described stable electricity as the most essential driver for economic transformation, especially in boosting the non-oil sectors of the economy.

“Access to reliable electricity remains the most critical requirement for fixing the Nigerian economy,” Elumelu stated. “Without addressing our power issues, achieving a $1 trillion economy will remain a dream.”

He pointed out that despite presidential directives in 2023 to eliminate barriers within the power sector, execution has been slow due to a lack of will among key stakeholders.

“The President gave clear instructions to remove all impediments in the power sector. Unfortunately, some individuals responsible for bringing that vision to life are hesitant to act,” he said. “I urge them to take bold steps in supporting the government’s agenda.”

Elumelu also drew attention to the significant debts owed to Transcorp by the Federal Government for electricity supplied to the national grid, disclosing an outstanding amount of over N600 billion.

“As it stands, the government owes us more than N600 billion — that’s about $400 million,” he revealed. “We are patriotic investors committed to national growth, but we’re essentially subsidizing the system. This needs urgent attention.”

While acknowledging efforts by the current administration, including initiatives like the Presidential Metering Initiative and transmission reforms, Elumelu stressed the need for faster and more decisive implementation.

Despite these hurdles, he reported major progress within the company. According to him, Transcorp PLC’s market capitalisation has surged from under N20 billion in 2011 to over N4.5 trillion.

“When we took over in 2011, the company’s market value was just N2 billion. Today, it stands proudly above N4.5 trillion,” he said.

Elumelu also announced that shareholders will receive N1 per share in dividends for the 2024 financial year — continuing a consistent trend of yearly returns since the group’s acquisition.

“In 2011, this company had never paid dividends. Since we came in, we’ve changed that. We declared N1 per share for 2024, and I’m confident 2025 will be even better.”

Transcorp Power, he added, now has a valuation of over N2.7 trillion and has fully repaid its $215 million foreign acquisition loan.

“We believe in transforming lives and catalyzing economic development. And in any economy, power is non-negotiable,” he noted.

Additionally, Elumelu unveiled a newly completed 5,000-capacity event centre at the Transcorp Hilton in Abuja, intended to position Nigeria as a global destination for conferences and events.

“We see places like Rwanda, Dubai, and Kenya thriving as event hubs. Nigeria deserves to be on that map—and now it is,” he said.

Looking ahead, Elumelu shared that the company is exploring expansion into agriculture and renewable energy, reflecting shareholders’ calls to support more critical sectors of the economy.

“We recently visited Israel to explore agricultural investment opportunities,” he said. “Beyond that, we’re also deeply interested in renewable energy.”

He concluded with an invitation to the investing community: “Our shareholders are thrilled with the progress. To potential investors—now is the time to join us and be part of this success story.”

Also speaking at the AGM, Dr. Owen Omogiafo, President and Group CEO of Transcorp Group, reiterated the firm’s commitment to innovation and sustainable growth. She confirmed that strategic diversification into sectors like agriculture is underway, with a focus on long-term, high-impact opportunities.