Tony Elumelu, a prominent Nigerian business entrepreneur and chairman of one of the country’s largest banks, the United Bank for Africa (UBA), has emphasized the vital need to privatize Nigeria’s energy transmission lines.
In an exclusive interview with Bloomberg, Elumelu, a significant figure in Africa’s commercial landscape and one of Nigeria’s richest individuals, underlined the importance of tackling power sector concerns to revitalize infrastructure and stimulate 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, has identified the negative effects of inadequate transmission lines and liquidity issues on the electricity market, which impede industry growth.
“Even when electricity is generated, the existing grid infrastructure cannot accommodate it, presenting a significant challenge for us,” he said. He asked the government to allow the transfer of idle gas assets or fields to capable Nigerian investors, thereby encouraging gas-related investments and efficient electricity generation.
Transcorp Power’s listing contributes $1.65 billion to the NGX market capitalization.
Elumelu advocated for a strategic strategy under President Bola Tinubu’s government, emphasizing investor participation and delegating transmission line control to the private sector. He believes that this strategy will allow Nigeria’s huge gas reserves to be used to generate energy more efficiently.
Elumelu’s impact on Nigeria’s power sector is visible through Transcorp’s recent listing of Transcorp Power, its energy business, on the Nigeria Exchange (NGX). The energy unit, with an installed capacity of roughly 2,000 MW, makes a major contribution to Nigeria’s power grid, accounting for 15.5% of the country’s total installed capacity.
Transcorp Power has added more than N2.63 trillion ($1.65 billion) to NGX’s market capitalization since its IPO on March 4, with its share price increasing by 40%, providing substantial returns to shareholders.
Beyond his financial accomplishments, Elumelu’s numerous empowerment programs, like as the entrepreneurship program that provides a $5,000 initial investment, demonstrate his dedication to socioeconomic development. The projects have directly or indirectly impacted millions of Nigerians and Africans, cementing his reputation as a key changemaker on the continent.
