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Chairman of Transnational Corporation Plc (Transcorp Group), Mr Tony Elumelu, has revealed that the market value of the group’s listed entities has now hit N4.5 trillion (about $3 billion). He made this announcement during the 19th Annual General Meeting (AGM) of Transcorp held on Thursday.
Speaking during the meeting, Elumelu said the journey to this achievement started when he and his team took over the company in 2011. At that time, Transcorp’s market capitalization was just N20 billion.
“When we took over this company in 2011, the market cap of Transcorp was N20 billion. Today, the group’s market cap is N4.5 trillion,” he said proudly.
He also appreciated the role of shareholders in building the company, stressing that since 2011, Transcorp has consistently paid dividends, unlike the years before their takeover when no dividend was paid at all.
Strong Financial Performance
According to financial results published earlier, Transcorp recorded a profit before tax of N136.6 billion for the year ended December 31, 2024. That’s a 132.41% increase compared to N58.8 billion reported the previous year.
The group’s total revenue also grew massively by 107.07%, from N196.9 billion in 2023 to N407.9 billion in 2024. Out of this, the power sector alone contributed about 82.8%.
Elumelu said gross earnings rose to N408 billion in 2024, up from N197 billion in 2023. Total assets also jumped by 42%, reaching N751.6 billion at the end of 2024, up from N529.9 billion. Meanwhile, shareholders’ funds increased by 45%, from N187.3 billion to N271.7 billion.
With over 70% of shareholders’ approval, a full dividend of N1.00 per share was approved. This includes an interim dividend of 40 kobo paid earlier on August 7, 2024, and a final dividend of 60 kobo per share — bringing the total dividend payout to over N10.1 billion.
Elumelu Speaks on Power Sector Crisis
While the financial success was worth celebrating, Elumelu used the opportunity to address a more pressing matter — the power sector in Nigeria.
He said, “We must be able to fix power to fix and transform Nigeria. Electricity remains the single most important factor affecting our economy, especially now that the non-oil sector is expected to lead growth.”
He lamented that after 20 years of investing in the power sector, major issues such as poor infrastructure, gas shortages, and cash flow problems are still present.
According to him, the federal government currently owes Transcorp over N600 billion — around $400 million — for electricity generated and supplied.
“As patriotic Nigerian investors, we’ve continued to support the sector, but the burden is too much. We are practically subsidizing the power sector, and that’s not sustainable,” Elumelu said.
Calls for Urgent Government Action
He appreciated President Bola Tinubu’s administration for showing interest in tackling the power sector crisis, especially the efforts made last year to clear the debts owed to power generation companies (Gencos). However, he stressed that time is not on Nigeria’s side.
“While the initiatives are good, they need ruthless and result-oriented execution. If not properly managed, the sector might collapse, and the consequences will affect the whole country,” he warned.
Elumelu also highlighted the importance of providing meters to homes, improving transmission systems, and building strong gas infrastructure to support power generation.
He believes that with the right policies, proper follow-up, and commitment from all those involved in executing the President’s power directives, Nigeria can finally fix its electricity problem.
He urged government officials to speed up the payment of debts, deliver meters quickly, improve gas investments, and put serious attention on power transmission projects.
“I believe the new leadership at the NNPC can also help in this area,” he added.
