The Chairman of Transnational Corporation Plc, Tony Elumelu, has urged key stakeholders within the Federal Government to take decisive action in implementing President Bola Tinubu’s vision for the power sector, warning that fear and hesitation are hindering progress.
Speaking with journalists in Abuja on Wednesday following the company’s 19th Annual General Meeting, Elumelu expressed concern that while President Tinubu has shown commitment to reforming Nigeria’s electricity sector, key actors within the system are reluctant to drive the necessary changes.
He highlighted the federal government’s unpaid debts to power generation companies as a major obstacle to meaningful progress.
Elumelu revealed that Transcorp Power, the electricity generation arm of the Transcorp Group, is currently owed over $400 million (about N600 billion).
He emphasised that resolving these debts is critical to unlocking the sector’s potential and aligning with the President’s Renewed Hope Agenda, which seeks to reposition Nigeria’s economy toward $1 trillion growth.
“We believe that to fix Nigeria, we must fix power. And we are great supporters of President Tinubu’s Renewed Hope Agenda. We know that to grow a $1 trillion economy, electricity must be fixed. That is not the case today.
“The President gave a directive last year that all impediments to the power sector should be removed. But I am afraid to say that critical people who should help bring the President’s vision to life are afraid to do so. May I use this opportunity to call on them to help translate this innovative idea to action,” Elumelu said.
He stressed the urgency of addressing Nigeria’s energy access issues, noting that citizens deserve improved power supply and that Transcorp, along with other private sector players, is ready to play its part if financial obligations are honoured.
“Nigerians need improvement in access to electricity. The power sector is heavily owed. Transcorp alone is owed over $400 million, which is over N600 billion. We want this paid so that we can help actualize the President’s vision for improving electricity supply to Nigeria,” Elumelu stated.
Beyond the power sector, Elumelu provided insights into the performance of Transcorp’s business units.
He noted that Transcorp Hotels, Transcorp Power, and Transcorp Energy have all continued to deliver strong value, with plans to list additional subsidiaries in the future, including the Abuja Electricity Distribution Company, which is currently managed by the group.
According to him, “We have Transcorp Hotels—it’s working well. We also have Transcorp Power, which is managed by AEDC, and then Transcorp Energy. Transcorp is doing so well. We create value for shareholders.”
Elumelu disclosed that the combined market capitalization of Transcorp’s listed companies now exceeds $3 billion, or approximately N4.5 trillion, excluding unlisted entities such as AEDC and Transcorp Energy.
He extended an invitation to the investing public to participate in the Transcorp growth story.
“When we took over this company in 2011, the market cap of Transcorp was less than $2 billion. Today, the group market cap is over N4.5 trillion. Since 2004, when we took over the company, we have consistently paid dividends to shareholders. We just declared N1 of dividends for 2024, and 2025 will definitely be better than 2024,” he said.
On the financial front, the conglomerate posted gross earnings of N408 billion as of December 31, 2024—an increase of 107 percent from N197 billion in 2023. Profit Before Tax soared by 132 percent to N136.7 billion, up from N58.8 billion in 2023, while Profit After Tax surged 188 percent to N94.1 billion, from N32.6 billion the previous year.
The Group’s total assets rose by 42 percent to N751.6 billion by year-end 2024, up from N529.9 billion in 2023. Shareholders’ funds also grew significantly, increasing by 45 percent to N271.7 billion from N187.3 billion in December 2023.
Following this strong financial showing, the Board of Directors recommended a full dividend of N1 per share. This includes an interim dividend of 40 kobo per share paid on August 7, 2024, and a final dividend of 60 kobo per share to be disbursed later in the year.
Elumelu concluded with a message of optimism and commitment to transformation: “We are doing what we are expected to do—transforming companies and businesses and creating more value for shareholders. We want more Nigerians and investors to be part of this journey.”
