• Elumelu calls for full power sector privatisation

From Adanna Nnamani and Nmasi Okwor, Abuja

Transnational Corporation PLC, also known as Transcorp Group, has reported an annual gross earnings of N197 billion for the year 2023.

The group saw a 47% revenue increase from N134 billion in 2022 to N197 billion in 2023, accompanied by a 94% rise in profit before tax from N30 billion to N59 billion.

Furthermore, total assets rose by 20% to N530 billion, and shareholders’ funds grew by 21% from N155 billion to N187 billion.

Tony Elumelu, Chairman of the Board of Directors of Transcorp Group, disclosed these financial achievements during the annual general meeting in Abuja on Monday.

Elumelu attributed the success to substantial investments that led to strong growth in the group’s power and hospitality sectors.

“In the hospitality business, consolidating on the previous year’s successful performance, we achieved an impressive increase in average occupancy rate growth from 78% in 2022 to 81% in 2023, with an average daily rate (ADR) of N139,000.

“In our power business, we invested in significant capacity recovery and improved operational efficiency and maintenance to grow value for our stakeholders. Our overall performance underscores our commitment to the continued execution of our strategy to generate sustainable economic returns while maximising shareholders’ value,” he said.

The business magnate also called on the federal government to fully privatise the country’s power sector to enhance efficiency and rescue it from total collapse.

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Elumelu noted that despite the privatisation efforts that began in 2012, only partial privatisation has occurred, with the Transmission Company of Nigeria (TCN) being fully owned by the government, while electricity distribution companies (DisCos) are 40% government-owned. He added that the government also holds ownership stakes in some Generation companies (GENCOs).

He said: “To enable the sector to be efficiently run by the private sector, I recommend that the Federal Government should come out with a clear timeline for the full privatisation of the power sector, starting with the DisCos and Transmission Company of Nigeria.

I look forward to a fully reformed and uncashed Nigerian power sector, fully contributing, as it must, to Nigeria’s economic renaissance and social rebirth.”

Looking ahead to 2024, Elumelu mentioned that the group aims to sustain its impressive financial performance by optimising its subsidiary businesses, utilising innovation, strengthening brand value, and considering expansion into other key sectors.

He said the key priorities for the power sector were:

to increase and maintain its combined available generation capacity from 710MW in 2023 to 908MW in 2024, as well as to take advantage of the bilateral power sale opportunities arising from the enactment of the 2023 Electricity Act by entering into agreements with strategic electricity distribution companies and eligible customers.
“In addition, we will further consolidate the existing benefits from our membership of the West African Power Pool, by increasing our share of the regional electricity market,” he added.

Elumelu said that in the hospitality sector, the primary goal is to strengthen Transcorp’s dominance as the industry leader. This, he explained, will be achieved by consistently pursuing excellence in all operational aspects and elevating service standards to new heights.

The key priorities, according to him, include:

  • the successful introduction of the Transcorp Events Centre in Abuja in Q3, 2024 – a 5,000-seater hall that complements the services of the renowned Transcorp Hilton Hotel.
  • the groundbreaking for the Transcorp Ikoyi Hotel in Q4, 2024 – a 315-room structure which will attract business and leisure travellers alike and boost the revenue potential of the group’s hospitality business.

“Transcorp remains committed to maintaining top-tier performance in alignment with our goal to retain market leadership. We will continue leveraging all available resources to generate and deliver value to our shareholders. Our various businesses will work together, harnessing economic synergies and delivering exceptional returns throughout the year. We are also focused on leveraging strategic partnerships to achieve our goals and forging the necessary alliances with relevant stakeholders locally and internationally,” he assured.


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