Elumelu urges FG to pay N600bn debt owed Transcorp Power

The Transnational Corporations Plc (Transcorp Group) delivered impressive financial results in 2024, maintaining a strong upward trajectory amidst a challenging economic landscape, further solidifying its market leadership and strategic positioning.

Transcorp Group at its 19th Annual General Meeting (AGM) on Wednesday in Abuja announced that the Group’s total assets grew by 42 per cent to N751.6 billion by the end of 2024, an increase from N529.9 billion in 2023.

Also, the Group achieved significant year-on-year growth, with Gross Earnings reaching N408 billion as of December 31, 2024, reflecting a 107 per cent increase from N197 billion in 2023.

Profit Before Tax (PBT) for the Group grew by 132 per cent to N136.7 billion, compared to N58.8 billion in 2023, while Profit After Tax (PAT) for the Group surged 188 per cent to N94.1 billion in 2024, up from N32.6 billion in 2023.

Shareholders’ funds for the Group increased by 45 per cent, from N187.3 billion in December 2023 to N271.7 billion by December 2024.

The Group said in its power and hospitality businesses, it prioritised asset optimisation, operational efficiency, and cost management, leading to revenue growth of 124 per cent in its power business and 69 per cent in the hospitality business.

Chairman, Board of Directors, of Transcorp Group, Tony Elumelu who spoke to journalists on the sideline of the event, decried the inability of President Bola Tinubu’s aides to help actualize the President’s vision for the power sector, which is central to the development of the country.

He called for the payment of ₦600 billion owed to Transcorp Power by the Federal Government to enable the company to assist the President in actualizing the vision he has for the country’s electricity sector.

Elumelu said, “We believe that access to electricity is critical for the development of our country; we believe that to fix Nigeria, we must fix power. We the supporters of President Tinubu’s Renewed Hope Agenda know that to grow a $1 trillion economy, electricity must be fixed. That is not the case today.

“We know that the President directed last year that all impediments to the power sector should be removed. I am afraid to say that the critical people who should help to see the President’s vision come alive have failed to do so. May I use this opportunity to call on them to help translate the President’s initiatives and ideas into a reality?
Nigerians need access and improvement to electricity.

“In the power sector, we are owed a lot of money. In Transcorp Power alone, we are owed $400 million that’s about ₦600 billion, and a lot of money. We want this paid so that we can help actualize the President’s vision for Nigeria”.

According to the company, revenue grew by 107 per cent to N408 billion, led by a 124 pe rcent increase in Transcorp Power’s revenue and a 69 percent rise in Hospitality earnings.

Return on Equity (ROE) increased from 24.90 per cent to 52.94 per cent, and Net Profit Margin improved to 23.07 per cent, reflecting higher efficiency and profitability.

Furthermore, Elumelu said, “My message for shareholders and the investing public at large is come join the Transcorp Group and benefit and enjoy what the existing shareholders are already having.

“When we took over this company in 2011 the market capitalisation was about ₦20 billion; today the Group market cap is over ₦4.5 trillion. The company was founded in 2004, and when we took over in 2011 it had not paid dividends one day but since we took over, we have consistently paid dividends to shareholders.

“We are doing what we are excited to do, which is transforming companies, businesses and creating value for our shareholders.

“The shareholders of Transcorp are like the Board and Management, they are excited and happy to help transform the Nigerian economy. They want us to explore the possibility of going to other critical sectors of the economy that will help us to complement what President Bola Tinubu is doing to make life better for the people. They talked about Agriculture, besides, we are also interested in renewable energy, and looking at other areas”.

Dr. Owen D.Omogiafo President/GCEO said these results affirm the strength of the Group’s diversified portfolio and the effectiveness of the value-driven strategy.

“We remain committed to expanding our footprint strategically and enhancing our brand value across key segments of the hospitality industry in Africa,” President/GCEO said.

READ MORE FROM: NIGERIAN TRIBUNE</strong