In a rebuke of Nigeria’s faltering energy reforms, Chairman of Transcorp Group, Mr Tony Elumelu, has declared that the country’s ambition to build a $1tn economy will remain an illusion unless urgent and decisive action is taken to overhaul its ailing electricity sector.
Speaking on Wednesday at the company’s Annual General Meeting in Abuja, Elumelu described access to reliable electricity as “the single most critical factor” in transforming the nation’s economy, particularly as Nigeria intensifies efforts to diversify beyond oil.
“I want to use this opportunity to reiterate that access to electricity remains the single most critical factor in fixing the Nigerian economy, especially as we seek to have the non-oil sector make greater contributions to our economy.
“We must, therefore, fix power to fix and transform Nigeria. We know that to grow a $1tn economy, electricity must be fixed. That is not the case today,” he said.
While acknowledging President Bola Tinubu’s 2023 directive to remove impediments in the power sector, Elumelu lamented the lethargy of key stakeholders in translating policy into action.
Elumelu also raised an alarm over the massive debt owed by the Federal Government to Transcorp for electricity already supplied to the national grid. He disclosed that the government currently owes the company over N600bn, which he equated to $400 million.
“Much as we, patriotic Nigerian investors, are committed to supporting the efforts of the Federal Government in fixing the economy, we have a rather excruciating burden of subsidising the sector. It requires urgent attention.
“The president directed last year that all impediments to the power sector should be removed. But I’m afraid to say that critical people who should help to see the president’s vision come alive are afraid to do so. May I use this opportunity to call on them to help translate the President’s initiative idea into action,” he said.
While recognising some of the administration’s recent initiatives, such as the Presidential Metering Initiative and transmission reforms, the Transcorp Chairman stressed that implementation must be swift to avoid compounding the crisis.
Despite these challenges, Elumelu announced remarkable growth across the Transcorp Group. He revealed that the company’s market capitalisation has surged from a mere N2bn in 2011 to over N4.5tn as of 2025.
“When we took over this company in 2011, the market cap of Transcorp was actually N2bn. Today, the group market cap is over N4.5tn.”
He also highlighted the consistent payment of dividends to shareholders under his leadership, including a N1 per share dividend declared for the 2024 financial year.
Further demonstrating Transcorp’s fiscal discipline, he announced that Transcorp Power had fully repaid its $215m foreign exchange acquisition loan in 2024, bringing the unit’s current market value to over N2.7tn.
He also unveiled the completion of a new 5,000-capacity event centre at Transcorp Hilton, Abuja — a strategic move aimed at positioning Nigeria as a preferred destination for global events.
Looking ahead, Elumelu said the group is considering expansion into agriculture and renewable energy, based on shareholder recommendations.
“They want us to explore the possibility of going to critical sectors of the economy that will help us to complement what President Bola Tinubu and his government are doing to make life better for everyone. We came back from Israel not too long ago, exploring possibilities about investing in the agriculture sphere. But beyond agriculture, we’re interested in renewable energy,” he added.
He added with a call to investors: “To shareholders of Transcorp, they are very excited. And to the investment public, it’s time to come on board and enjoy what our shareholders are already having.”
Echoing Elumelu’s confidence, President and Group CEO of Transcorp, Dr Owen Omogiafo, reaffirmed the company’s commitment to innovation, while emphasising strategic diversification into agriculture to unlock high-impact growth opportunities.
