• Friday, November 22, 2024
businessday logo

BusinessDay

Elumelu’s Transcorp consolidates stake in Nigeria’s power sector

Heirs Technologies makes play for $250bn global outsourcing market

Tony Elumelu, chairman of Heirs Energies

The acquisition of a 60 percent stake in the Abuja Electricity Distribution Company (AEDC) by a consortium led by Transcorp along with interests in power plants in Delta elevates Transnational Corporation to a major player in Nigeria’s power sector with the group’s market capitalization in excess of N540bn.

In May 2023, the National Council on Privatisation approved the Transcorp-led Consortium, as a new strategic investor in Abuja Electricity Distribution Company, bringing into the fold one of Nigeria’s power distribution companies. With over 15 percent share of Nigeria’s installed power generation capacity, Transcorp moves into the downstream value chain with the acquisition of AEDC stake.

With this acquisition, the company will take on the challenge to revamp one of Nigeria’s strategic power distribution companies. Abuja DisCo with over 1.32million customers has as its franchise areas the Federal Capital Territory, Niger State, Kogi State, and Nassarawa State.

Christopher Ezeafulukwe, the Managing Director/CEO of Transcorp Power Limited, has been appointed by the Board of the AEDC, as the new Managing Director/CEO of AEDC. Prior to his appointment, Ezeafulukwe was the MD/CEO of Transcorp Power Ltd, Ughelli, a 972-MW thermal plant.

Read also: Niger debt makes compensation for electricity cut doubtful  

Under his leadership, Transcorp Power Ltd has consistently led the Nigerian power sector, becoming the first successor power company from the 2013 power privatization program, to be discharged from post-privatisation monitoring by the National Council on Privatization, having surpassed the expectations of the Council.

The Ughelli Power plant, which Transcorp Group acquired during the privatisation of the power sector in 2013, demonstrates the Group’s transformative prowess. The plant’s available capacity, which stood at 160MW on acquisition, increased by 227 percent to 680.83MW in 4 years, surpassing the Bureau of Public Enterprise’s (BPE) five-year target of 670MW.

Industry insiders say with Ezeafulukwe’s proven capabilities and extensive experience, he will play a pivotal role in rejuvenating AEDC, the supplier of power to the nation’s capital.

The group’s subsidiaries, including Transafam Power Limited and Transcorp Hotels Plc, owners of Transcorp Hilton Abuja, have demonstrated continued value creation and a dedication to creating both economic and social wealth. With a combined market capitalization exceeding N540 billion, the Group continues to demonstrate the Africapitalism philosophy of its Group Chair – Tony Elumelu.

Isaac Anyaogu is an Assistant editor and head of the energy and environment desk. He is an award-winning journalist who has written hundreds of reports on Nigeria’s oil and gas industry, energy and environmental policies, regulation and climate change impacts in Africa. He was part of a journalist team that investigated lead acid pollution by an Indian recycler in Nigeria and won the international prize - Fetisov Journalism award in 2020. Mr Anyaogu joined BusinessDay in January 2016 as a multimedia content producer on the energy desk and rose to head the desk in October 2020 after several ground breaking stories and multiple award wining stories. His reporting covers start-ups, companies and markets, financing and regulatory policies in the power sector, oil and gas, renewable energy and environmental sectors He has covered the Niger Delta crises, and corruption in NIgeria’s petroleum product imports. He left the Audit and Consulting firm, OR&C Consultants in 2015 after three years to write for BusinessDay and his background working with financial statements, audit reports and tax consulting assignments significantly benefited his reporting. Mr Anyaogu studied mass communications and Media Studies and has attended several training programmes in Ghana, South Africa and the United States

Join BusinessDay whatsapp Channel, to stay up to date

Open In Whatsapp