Transcorp Group’s Group Chief Executive Officer, Owen Omogiafo, disclosed a tenacious pursuit to boost available power capacity to 2,000 megawatts by year’s end.
According to Nairametrics, Omogiafo acknowledged the prior transmission and gas issues in an interview with Arise News on 21 August but emphasized the remarkable turnaround seen in Transcorp’s power business in the first half of 2023.
“We concentrated on increasing our mechanical available capacity in the first half of 2023. Although there were still some transmission and gas-related issues, our electricity business significantly improved.
“According to the plan we are using, by the end of the year, we will have roughly 2,000 megawatts of capacity available, and with gas concerns receiving more attention, particularly with the new Minister of State for Gas who will focus on it.
“He noted that approximately 79% of Nigeria’s electricity is thermal, meaning gas-fired, and the situation is expected to get worse.
“We will, of course, receive more value and continue to grow once these issues are resolved.”
Transcorp, according to Omogiafo, is a member of the consortium that purchased the 60% ownership in Abuja Electricity Distribution Company.
She claimed that the justification for the acquisition is that Nigeria is experiencing economic growth, and the power sector is well-positioned to spearhead this growth because no industry or sector can function without power.
“According to the plan we are using, by the end of the year, we will have roughly 2,000 megawatts of capacity available, and with gas concerns receiving more attention, particularly with the new Minister of State for Gas who will focus on it.
He noted that approximately 79% of Nigeria’s electricity is thermal, meaning gas-fired, and the situation is expected to get worse.
“In 2013, when the initial privatization of the sector happened, Transcorp and other companies entered, the narrative was that we are not generating enough power to meet our needs.”
Transcorp Group has performed well in the generating sector over the past ten years because it is a patient investor.
“As time went on, it became clear that the issue had changed and was now more about getting the power to the end consumer than it was about power generation.”
According to him, that is what prompted the consortium led by Transcorp to acquire AEDC, “and we are certain that we can resolve it.”
“We would work with the other investors to turn around Abuja Disco so that it can service the catchment areas it covers and perhaps as a result, industrialization and urbanization will expand. That is why we are drawing upon the discipline and skill that we have as turnaround experts.”
Last week, the Abuja Electricity Distribution Company bought a 60% interest from a consortium of investors led by Transcorp Power Limited.
In an effort to revitalize the distribution company after the acquisition, the current MD/CEO of Transcorp Power Limited, Christopher Ezeafulukwe, would assume the position of Managing Director/Chief Executive Officer (MD/CEO) at AEDC.
The Federal Capital Territory, the states of Niger, Kogi, and Nasarawa are the areas that will gain from the revival.
Transcorp Group reported N82.1 billion in sales, N29.9 billion in operating income, N15.9 billion in operating expenses, and N18.5 billion in pre-tax profit for the first half of 2023.
