Tony Elumelu, the Chairman of Transnational Corporation Plc, has called on the federal government to expedite the payment of over N2 trillion in debts owed to power generation companies (GENCOs) across the country.
Addressing shareholders at the 18th Annual General Meeting (AGM) of the corporation held in Abuja, Elumelu highlighted the significant impact of the outstanding debts on the ability of GENCOs to fulfill their financial obligations, particularly in paying their gas suppliers. He emphasized that the liquidity challenges in the sector, exemplified by the debt owed to GENCOs by the Nigerian Bulk Electricity Trading Plc (NBET), currently amounting to over N2 trillion, have adversely affected investment in power generation and the reliability of gas supply.
Elumelu praised recent government commitments to addressing the debt owed to GENCOs and urged prompt action to translate these promises into tangible results. He underscored the importance of maintaining liquidity flow in the power sector to ensure payment assurance and sustain the consistent supply of electricity to consumers.
Additionally, Elumelu reassured shareholders about the corporation’s financial stability post-banking sector consolidation and disclosed the complete settlement of the dollar-denominated acquisition loan for Transcorp Power.
Looking ahead, he outlined the corporation’s strategic plans for 2024, including efforts to maximize subsidiary businesses’ potential, enhance brand equity, and explore expansion opportunities in key sectors. Elumelu also emphasized the importance of increasing and maintaining the combined available generation capacity and leveraging bilateral power sale opportunities.
Furthermore, Elumelu addressed challenges such as energy theft and vandalism of power infrastructure, advocating for the establishment of special courts to handle energy theft cases swiftly. He also called for the full privatization of the power sector to enhance efficiency and urged the government to provide a clear timeline for the process.
In her remarks, Transcorp President/Group Chief Executive, Dr. Owen Omogiafo, highlighted the company’s strategic priorities for 2024, focusing on surpassing set targets across various operating segments and sustaining growth, operational excellence, financial resilience, and sustainable development.
Transcorp Plc experienced significant growth in 2023, as evidenced by a 604% increase in market capitalization and impressive financial performance, reflecting its ongoing progress and commitment to creating lasting value for stakeholders.
