Tony Elumelu Offers Solution To Prevent Collapse Of Nigeria’s Power Sector

Africa’s leading investor, Tony Elumelu, has declared that the power sector must be fixed before Nigeria can be transformed into a better country.

“I want to use this opportunity to reiterate that access to electricity remains the single most critical factor in fixing the Nigerian economy, especially as we seek to have the non-oil sector make a greater contribution to our economy…We must therefore fix power, to fix and transform Nigeria,” the philanthropist stated at the 19th Annual General Meeting (AGM) of Transnational Corporation (Transcorp Group) on April 9, 2025.

Mr. Elumelu is the chairman of the conglomerate whose listed entities are currently valued at $3 billion (₦45 trillion)—a big leap from the less than ₦20 billion valuation when his team took over the company in 2011.

The group is rated as one of Nigeria’s largest quoted conglomerates, with its subsidiaries, Transcorp Power and Transcorp Hotels, adjudged leaders in their sectors based on towering feats.

The conglomerate is a substantial contributor to the nation’s power supply, with almost 1,000 MW—out of the less than 5,000 MW consumed by the entire country—generated from its stations: Transcorp Power Ughelli (625 MW) and TransAfam (305 MW).

However, checks revealed that Transcorp Power Ughelli has an installed capacity of 1,000 MW of electricity generation, while TransAfam has a 1,000 MW capacity—a combined capacity of 2,000 MW.

“The main dominant challenges of the power sector—namely, liquidity, infrastructure, gas availability—remain unresolved 12 years after some of us invested heavily in this sector. As of date, our Federal Government owes your company over ₦600 billion ($400 million),” Mr Elumelu highlighted, noting the factors preventing Transcorp power stations from operating at full potential.

The debt is part of the ₦4 trillion the Nigerian government owes electricity generation companies (GenCos) and distribution companies (DisCos). These debts, which have significantly affected the power sector and hindered investments in infrastructure, comprise about ₦2 trillion in legacy debt and ₦1.9 trillion related to electricity subsidies for 2024.

“Much as we, as patriotic Nigerian investors, are committed to supporting the efforts of the Federal Government in fixing the Nigerian economy, we have been under the excruciating burden of subsidising the sector as producers who do not get paid for the electricity we generate; we put on the grid, and is consumed on the grid,” the prominent champion of entrepreneurship in Africa disclosed, while emphasising that the situation requires “urgent attention.”

In offering a solution to prevent a collapse of the pivotal sector, Mr Elumelu, who observed that he is aware of well-intended initiatives of the Federal Government—which commenced last year under the new administration, President Tinubu’s administration—targeted at paying the debt owed GENCOs, said:

“While the intentions behind these initiatives are very good, these intentions can only be achieved through ruthless, result-oriented, and timely execution of the initiatives before this sector collapses in front of our very eyes with its attendant consequences.”

Adding that, “Let me therefore use this opportunity of our AGM to call on all those involved in executing our President’s directives on this initiative to please prioritise this critical national task immediately. They should expedite action to fully pay the huge debt owed GENCOs by completing the process already initiated towards the end of last year.”

The proponent of Africapitalism—which positions the private sector, and most importantly entrepreneurs, as the catalyst for the social and economic development of Africa—further urged that the delivery of meters under PMI should be quickened, noting that Transcorp is committed to working with the Federal Government on this.

“Transmission infrastructure, whether under the PPI or other initiatives, should be addressed immediately, and special incentives should be put in place to expedite investment in gas and gas infrastructure development,” he also advocated, opining that, “I believe that the new leadership in NNPC will help to fast-track this.”

A new board, with Bashir Bayo Ojulari as Group Chief Executive Officer (GCEO), took over at the Nigerian National Petroleum Company (NNPC) Limited on April 2, 2025.

“The completion of the ongoing OB3 (Obiafu–Obrikom–Oben) gas pipeline will positively impact gas-to-power supply, as the pipeline is expected to link the Eastern gas network—where there is currently acute gas supply shortage—to the Western network, with relatively better gas supply availability,” the founder of the Tony Elumelu Foundation (TEF) programme reiterated.

The TEF programme has lifted about 2 million Africans out of poverty, disbursed more than $100 million in direct funding to thousands of African entrepreneurs—who are estimated to have created over 1.5 million direct and indirect jobs—boosting the continent’s economy with about $4.2 billion in revenue.

The Transcorp Group AGM was held at the Transcorp Hotel Abuja, which boasts of a 5,000-capacity event centre that has put Nigeria on the global map for capacity to host world-class events.