Nigerian billionaire Tony Elumelu has warned that Nigeria’s ambitious goal of achieving a $1 trillion economy is unrealistic without immediate and sustained action to fix the electricity sector.
Speaking at Transcorp Group’s Annual General Meeting (AGM) in Abuja on Wednesday, Elumelu, who chairs the group, stressed that reliable power is the most critical factor in economic transformation—particularly as Nigeria pushes for non-oil sector expansion.
“We must have power to fix and transform Nigeria. To grow a $1 trillion economy, electricity must be fixed. That is not the case today,” he stated.
Government’s Pledge vs. Slow Implementation
Elumelu recalled President Bola Tinubu’s directive last year to eliminate impediments in the power sector but lamented slow implementation.
“The president directed that all obstacles should be removed, but critical people who should help make his vision a reality are hesitant,” he said.
He urged policymakers to take decisive action, translating plans into measurable results.
Massive Debt in Nigeria’s Power Sector
Elumelu also revealed that the federal government owes Transcorp Power ₦600 billion (approximately $400 million) for electricity supplied to the national grid.
“Much as we, patriotic Nigerian investors, are committed to supporting the government’s economic reforms, we are carrying the burden of subsidizing the sector. It requires urgent attention,” he noted.
He acknowledged efforts such as the presidential metering initiative and transmission reforms, but warned that slow execution could further weaken Nigeria’s energy sector.
Transcorp’s Growth and Expansion Plans
Despite economic challenges, Transcorp Plc has grown significantly, with its market capitalization surging to ₦4.5 trillion—up from less than ₦20 billion in 2011 when his group took over.
“Since we took over, we’ve consistently paid dividends to shareholders. We declared ₦1 per share for 2024, and 2025 will be even better,” Elumelu assured investors.
Transcorp Power now has a market value exceeding ₦2.7 trillion and fully repaid its $215 million foreign exchange acquisition loan last year.
Beyond power, Transcorp is expanding into agriculture and renewable energy, following shareholder recommendations.
The group also completed a 5,000-capacity event center at Transcorp Hilton, Abuja, positioning Nigeria as a global destination for events.
“Countries like Rwanda, Dubai, and Kenya have built event hubs. We want to put Nigeria on that map—and we are succeeding,” Elumelu declared.
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