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| Tony Elumelu |
Speaking at the company's Annual General Meeting (AGM) in Abuja on Monday, Elumelu also urged the federal government to settle the outstanding debts to Generating Companies (GenCos) by the government to prevent a total collapse.
Translational Group (Transcorp) Plc.'s Chairman, Tony Elumelu, has advocated for the complete privatization of the power sector to enhance efficiency and foster innovation.
Speaking at the company's Annual General Meeting (AGM) in Abuja on Monday, Elumelu also urged the federal government to settle the outstanding debts to Generating Companies (GenCos) by the government to prevent a total collapse.
"There's a pressing need to finalize the privatization of the private sector. Since its inception in 2013, it has been only partially completed. The Transmission Company of Nigeria (TCN) is entirely owned by the federal government, and the government also holds a 40% stake in Distribution Companies (DisCos), which means they have a vested interest in shareholders' equity.
As such, I suggest that the FG should establish a definitive timeline for the privatization process, beginning with the TCN," he stated.
Addressing the liquidity issues within the sector, he noted, "The liquidity imbalance in the sector is significant, exemplified by the debts accrued to GenCos by the Nigerian Bulk Electricity Trading Plc (NBET), which currently stands over N2 trillion. Our dues amount to N250 billion as of March 2024.
In essence, GenCos are underwriting the sector by continuing to produce power despite the substantial debts. This has adversely affected the GenCos' capacity to compensate their gas suppliers, thus affecting both the volume and dependability of gas delivery to the GenCos, as well as investments in generation. I am, therefore, encouraged by the Federal Government of Nigeria's recent declarations confirming its dedication to settling the debts owed to the GenCos."
Elumelu further highlighted that "Transcorp Group's market capitalization on the stock exchange has surged from 114 billion in January 2023 to 4.4 trillion currently, which is unparalleled in any company's history."
Owen D. Omogiafo, the President and Group CEO of Transcorp, also remarked, "Our gross earnings in 2023 reached N197 billion, up from N134 billion in 2022, marking a 47% growth year over year. This notable increase is attributed to the enhanced performance of our power and hospitality sectors, contributing 79% and 21% to the total gross revenue, respectively."
To conclude the AGM, the Transcorp Group proposed a dividend of 10 kobo per share to its shareholders.
