Tony Elumelu, chairman of Transcorp Plc., urged the Nigerian government to fully privatize the power sector to enhance efficiency and innovation. He highlighted the partial privatization undertaken in 2013 as insufficient, pointing out continued government ownership of transmission assets and partial stakes in distribution companies. Elumelu emphasized the need for a clear timeline for full private sector involvement, prioritizing the privatization of the Transmission Company of Nigeria (TCN).
Elumelu also addressed the crippling debt owed by the government to power generation companies (GenCos). He emphasized the negative impact this N2 trillion debt, with N250 billion owed to Transcorp alone as of March 2024, has on gas supplies and overall generation capacity. While welcoming recent government pronouncements on resolving the debt, Elumelu underscored the urgency of clearing these obligations for a more sustainable power sector.
On a positive note, Transcorp reported a significant rise in market capitalization, jumping from N114 billion in January 2023 to N4.4 trillion currently. This unprecedented growth reflects improved performance across their power and hospitality sectors.
Source: Daily Trust