Nigeria’s ambition to reach a $1 trillion economy hinges on one critical factor: solving the nation’s electricity crisis, according to Tony Elumelu, Chairman of Transcorp Group. Speaking at the company’s Annual General Meeting in Abuja, Elumelu emphasized that access to reliable electricity is the foundation of any economic transformation, especially as Nigeria seeks to boost its non-oil sector.
“The power sector is the single most critical obstacle to Nigeria’s economic growth,” Elumelu stated. “Without fixing electricity, the dream of a $1 trillion economy remains out of reach.”
Elumelu’s remarks come as Nigeria faces ongoing struggles with power supply and infrastructure, despite President Bola Tinubu’s directives last year to remove all barriers to improving the sector. Elumelu expressed concern that progress has been too slow, and urged key figures to take action and help bring the President’s vision for a reformed power sector to life.
Adding to the sector’s challenges, Elumelu revealed that the Federal Government owes Transcorp over N600 billion (about $400 million) for electricity supplied to the national grid. He highlighted that while Transcorp and other Nigerian investors are committed to supporting the government’s economic recovery efforts, they are burdened with the substantial cost of subsidizing the struggling power sector.
Despite these difficulties, Elumelu shared promising news about Transcorp’s growth. Since Transcorp took over in 2011, the company’s market capitalization has soared from less than N20 billion to over N4.5 trillion. Additionally, Elumelu announced that the company has consistently paid dividends to shareholders, including a Naira dividend for the 2024 financial year.
Transcorp Power, a subsidiary of the group, has also seen impressive growth, with a market value now exceeding N2.7 trillion. The company has also fully repaid its $215 million foreign exchange acquisition loan in 2024, signaling financial stability and resilience.
Elumelu also highlighted the company’s broader impact on Nigeria’s development, particularly through its work in the power sector. “Power is critical for the development of every economy,” he said. In addition to its achievements in energy, Transcorp has recently completed a new 5,000-capacity event center at Transcorp Hilton in Abuja, aiming to make Nigeria a hub for global events, following in the footsteps of countries like Rwanda and Dubai.
Looking ahead, Transcorp is exploring further expansion into agriculture and renewable energy, sectors that align with President Tinubu’s vision for economic diversification. Elumelu shared that the company has already explored investment opportunities in agriculture during a recent trip to Israel.
As Elumelu called on investors to support Transcorp’s growth, he concluded with a message to shareholders and the broader investment community: “It’s time to come on board and benefit from the success our shareholders are already enjoying.”
Dr. Owen Omogiafo, the President and Group CEO of Transcorp, reinforced the company’s commitment to innovation and excellence, noting that Transcorp’s future diversification efforts will focus on high-impact sectors like agriculture to support national development.
The call to fix Nigeria’s power sector has never been more urgent, as leaders like Elumelu recognize that the country’s economic potential can only be unlocked when the lights stay on.
