• Tuesday, December 05, 2023
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Elumelu’s Transcorp consolidates stake in Nigeria’s power sector

Tony Elumelu Foundation

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.