Transcorp Hits $3 Billion Valuation as Elumelu Calls for Urgent Power Sector Reforms
Transcorp Plc has reached a major milestone, with its market valuation now standing at $3 billion (₦4.5 trillion), according to its Chairman, Tony Elumelu. Speaking at the company’s 19th Annual General Meeting in Abuja, Elumelu celebrated the growth from a modest ₦20 billion valuation in 2011. He credited stakeholders for this success and hinted at further value growth with the future listing of subsidiaries like TransAfam and the Abuja Electricity Distribution Company (AEDC). Transcorp Power, another core subsidiary, is now valued at over ₦2.7 trillion and has fully paid off its ₦250 million acquisition loan.
Elumelu highlighted Transcorp’s pivotal role in national development, especially through its power subsidiaries. Transcorp Power and TransAfam currently have a combined installed generation capacity of 2,000 megawatts, with nearly 1,000 megawatts available — a significant contribution in a country where total power generation rarely exceeds 5,000 megawatts. He emphasized that energy is the bedrock of economic growth and reiterated the company’s mission to transform Nigeria and the African continent.
Despite the impressive figures, Elumelu raised serious concerns about long-standing issues plaguing Nigeria’s power sector. These include liquidity constraints, infrastructure deficits, and inadequate gas supply. Most notably, the federal government currently owes Transcorp over ₦600 billion (approximately $400 million) for power already delivered to the national grid. He warned that without urgent reforms and repayments, patriotic investors like Transcorp would be forced to continue subsidizing a broken system.
In a bid to further position Nigeria on the global stage, Elumelu announced the launch of a new 5,000-capacity event center at Transcorp Hilton Abuja. This facility aims to attract world-class international conferences and events, placing Nigeria alongside destinations like Dubai, Kenya, and Rwanda. While he acknowledged federal initiatives like the Presidential Metering Initiative and improvements in transmission operations, he urged faster and more decisive execution to avoid sector collapse and realize the country’s economic potential.
Source: the sun