Tony Elumelu, a prominent Nigerian business executive and chairman of one of the country’s biggest banks, United Bank for Africa (UBA), has reiterated the critical need to privatize Nigeria’s electricity transmission lines.
In an exclusive interview with Bloomberg, Elumelu, a key figure in Africa’s business landscape and one of Nigeria’s richest individuals, emphasized that addressing the challenges in the power sector is crucial for revitalizing the nation’s power infrastructure and stimulating economic growth.
The leading businessman who oversees influential entities such as Transnational Corporation of Nigeria Plc (Transcorp), Heirs Holdings, UBA, and the Tony Elumelu Foundation, pinpointed the adverse effects of inadequate transmission lines and liquidity issues on the electricity market, hindering industry growth.
“Even when electricity is generated, the existing grid infrastructure cannot accommodate it, presenting a significant challenge for us,” Elumelu stated. He urged the government to facilitate the transfer of idle gas assets or fields to capable Nigerian investors, fostering gas-related investments and efficient electricity production.
Transcorp Power’s listing adds $1.65 billion to NGX market capitalization
Advocating for a strategic approach under President Bola Tinubu’s administration, Elumelu stressed investors’ engagement and the transmission line management delegation to the private sector. He believes this approach will leverage Nigeria’s abundant gas reserves for effective electricity production.
Elumelu’s impact on Nigeria’s power sector is evident through Transcorp, which recently listed Transcorp Power, its energy division, on the Nigeria Exchange (NGX). The energy unit, with an installed capacity of approximately 2,000 MW, significantly contributes to Nigeria’s electricity grid, accounting for 15.5 percent of the nation’s total installed capacity.
Since its listing on March 4, Transcorp Power has added over N2.63 trillion ($1.65 billion) to NGX’s market capitalization, with its share price experiencing a 40 percent increase, delivering impressive returns to shareholders.
Beyond his business achievements, Elumelu’s diverse empowerment initiatives, including the entrepreneurship program offering a $5,000 seed investment, showcase his commitment to socio-economic development. The initiatives have directly or indirectly benefited millions of Nigerians and Africans, solidifying his status as a prominent changemaker on the continent.
