Transcorp’s Revolutionary Investments in Power Sector  

With its audacious investments and technological innovations in Nigeria’s power sector, which began in the last 10 years, the Transcorp Group has set the stage for an enhanced energy access in the country, with expected industrialisation, poverty eradication and job creation, writes Peter Uzoho

Penultimate week was jocularly described as “Transcorp Week,” by the elated Vice President of Nigeria, Prof. Yemi Osinbajo, during his speech at the inauguration of Transafam’s 240 megawatts Afam 3-Fast Power Plant, Oyinbo, Rivers State.

Events of the said week revolved around the investments and valuable impacts made by Transcorp Corporation Plc, one of Nigeria’s leading conglomerates, through its subsidiaries in the power sector -Transcorp Power Plc and Transafam Power Plc, upon its entrance as a major player into the Nigerian power industry in 2013.

Currently, Transcorp’s power subsidiaries have the capacity to produce about 1,938MW of electricity including the 966MW from its plant in Afam, Rivers State, and 972MW from its Ughelli plant in Delta State, accounting for 15.5 per cent of the total installed capacity in Nigeria.

This is indeed, a rare record achieved within few years of venturing into the power business.

EXPECTATIONS SURPASSED IN UGHELLI PLANT

The results of the investments and general inputs made by the Transcorp Group in the power sector have started manifesting, with government and stakeholders pouring accolades on the company. At a meeting of the National Council on Privatisation (NCP) held at the Presidential Villa, Abuja on May 8, 2023, with the vice president in attendance, the federal government formally presented the post-privatisation Discharge Certificate to Transcorp Power Plc, the owner of Ughelli Power Plant in Delta State.

The Discharge Certificate marked the delisting of Transcorp Power from the routine evaluation and monitoring of the Bureau of Public Enterprises (BPE), signaling a major achievement for the company.

This followed the fulfilment of all privatisation conditions set by the NCP, by Transcorp Power, owned by Africa’s billionaire businessman, renowned philanthropist and chief promoter of Africapitalism, Mr. Tony Elumelu, after the purchase of the power plant in 2013.

Transnational Corporation acquired Ughelli Power Plc, now Transcorp Power, from the federal government on November 1, 2013, during the privatisation of the power sector.

At the time of acquisition, the plant had an available capacity of 160MW. Transcorp invested and increased the available capacity to 680.83MW, representing a 227 per cent increase within four years of takeover, surpassing the five-year target of 670MW set by the BPE.

Transcorp Power Limited is a member of West African Power Pool and a participant in the ECOWAS Regional Electricity Market. Today, Transcorp Power supplies electricity to the ECOWAS Regional Market.

With the issuance of the Discharge Certificate to Transcorp Power, it would no longer be subjected to post-privatisation monitoring and is now the first privatised power generation company to achieve this milestone since the power sector privatisation commenced in 2013. 

However, one of the key targets set for Transcorp was a minimum available capacity of 670MW, which was achieved, cumulating to the presentation of the Discharge Certificate to it by the NCP.

Speaking at the event, Osinbajo, who is also the Chairman of NCP, commended Elumelu and his Transcorp Group for ensuring compliance and surpassing expectations with all post-privatisation deliverables.

Osinbajo said, “Post privatisation monitoring is an important aspect of the federal government’s privatisation programme. Transcorp Power has been able to ensure compliance and surpassed expectations with all post privatisation deliverables. I commend Tony Elumelu and his Transcorp team for this feat. I urge Transcorp Group to continue in that path and even do better.

“This being the first, should not be the last post privatisation discharge event.”

In his remark, Director General, BPE, Alex Okoh, congratulated the board and management of Transcorp for the milestones achieved in turning around the enterprise.

He noted that Transcorp has met and exceeded the performance targets and all other covenanted obligations agreed during the signing of the privatisation agreement in 2013.

“Transcorp Power increased the generation capacity of the plant by 227 per cent from the operational status as at handover in 2013,″ he said.

According to Okoh, “a capital expenditure totaling N58.612 billion was covenanted for phase 1, phase 2 as ‘additional investment’ but the actual investment made by Transcorp was the sum of N83.85 billion, leading up to a score of 143 per cent.”

Also speaking, Elumelu, who is the Group Chairman of Transcorp, thanked the federal government for their trust and confident in Transcorp.

He promised to invest massively in the power sector to help Nigeria’s industrialisation through enhanced access to electricity and ultimately tackle poverty in the country and continent.

He said in addition to fulfilling the post-privatisation performance criteria, Transcorp has driven a strong indigenous agenda, saying their plants were being managed and fully operated by Nigerians, hence creating jobs and reducing unemployment in the country.

“For us as Heirs Holdings Group, for us as Transcorp Group, we believe in improved access to electricity because we know that improved access to electricity means powering our schools, helping hospitals to function very well, helping businesses to grow and create employment and most importantly, helping to industrialise Nigeria.

“So because of this, we invest in the power sector and we will continue to even invest more in that sector because in line with our philosophy of Africapitalism, we cannot develop Nigeria, Africa without improvement in our access to electricity.

“And so, we think that the single most important investment that we as private sector can make is to invest in power and uplift our people out of poverty, create jobs and get our women involved in economic activities,” Elumelu stated.

Beyond meeting all the set criteria of increasing electricity generation beyond the capacity covenanted with the federal government, he noted that the Group had a “strong indigenisation agenda.”

He expressed the group’s pride having Nigerians managing and operating their plants, which is helping in job creation for Nigerians.

Elumelu further said, “But beyond job creation is improving the expertise of our people. We also have operated under very strict safety standards. We have operated since 2013 -10 years now.

“No incident, no health hazard, nothing and we will continue to stay that way because we know that in 21st Century, sustainability is key, health is important, safety extremely important.

“So we bring all of this together in what we do at Transcorp Group. And finally, I would like to say that we don’t grow alone at Transcorp Group. We grow with the community. We have grown with our community. We have helped to develop the community we are operating.

“We created jobs, we economically empower people. We have a functional hospital, we have a primary and secondary school and we will continue to do more.”

He said in line with the Transcorp Group’s philosophy of Africapitalism, the group maintains a symbiotic relationship that ensures mutual support between them and their host community.

“So for us at Transcorp, it’s about improving lives and transforming our society. We know that you cannot improve life if you cannot invest massively in access to electricity. And I want to use the opportunity to call on our friends, other Africans and private sector leaders, let’s prioritise the power sector in Nigeria and Africa so that we can get our people out of poverty and create jobs for our young ones”, he added.

TRANSCORP’S NEW PLANT IN AFAM

However, activities of the eventful week proceeded the next day, Tuesday May 9, 2023 with the inauguration of Transcorp’s Afam 240MW Three Fast Power Turbines 

in Rivers State owned and operated by Transafam Power – a subsidiary of Transcorp.

With an already existing power plant residing in Afam, the plant inaugurated by the vice president brings the cumulative generating capacity of the plant to 1,000MW. 

The inauguration of Afam Three Fast Power plant came on the heel of the presentation of the Discharge Certificate to Transcorp Power Limited by the Vice President and Chairman of NCP, the previous day, in Abuja, following the fulfilment of all privatisation conditions set by the BPE.

Speaking during the inauguration, Osinbajo lauded the Chairman of Transcorp Group, Tony Elumelu and the entire Transcorp team for yet another power sector investment.

“Afam Three Fast Power is an important part of the evolving story of Nigeria’s aspirations to bring electricity to millions in their homes, factories and businesses that provide their livelihoods. It brings into view the importance of private capital in building up capacity along the power value chain.

 “A major weakness of our privatisation process has been inadequacy of private investments and new cash injections. But the tide is turning with indigenous power and private investors such as Transcorp Power and Heirs Holdings, making significant investments such as the 100 per cent acquisition of the 966MW installed capacity in Afam Plc and Afam III fast power Limited jointly referred to as Afam Genco”, Osinbajo said.

In his remark, the Minister of Power, Mr. Abubakar Aliyu, who was represented at the event by the Permanent Secretary, Mr. Temitope Fashedemi, applauded Transcorp Group for its positive contributions to improving electricity generation in Nigeria. 

“What we are celebrating today is an exemplar of the best of Public-Private partnerships. This collaboration has ensured that we are commissioning Afam Three Fast Power today, with a capacity to inject an additional 240MW of electricity into the National grid.

“At full capacity, it will no doubt provide about 40 per cent of our generated energy today. This is commendable and will certainly improve electricity supply to the nation along with growth of our economy and Gross Domestic Product (GDP)”, Aliyu said.

Also speaking, Elumelu emphasised the importance of power in Nigeria and the need for all stakeholders to collaborate to transform the sector.

Elumelu said, “We all experience the consequences of our power deficit – the implications for our people, our businesses, our schools, hospitals, and institutions – our national destiny. Transcorp Group is a key player in the power sector.  We recognise power is the single most critical factor to lifting our people out of poverty and enabling job creation.

“Therefore, I am so proud today, that we have been able to bring together so many key stakeholders. He concluded his speech with the commitment to continue to do well and do good. “We will not rest until we know every Nigerian has access to the power and the fruits of that power, which we know can transform our country.

“We are fulfilling our promises to the Government and demonstrating Transcorp’s purpose of “Improving Lives and Transforming Africa”. 

On his part, Okoh highlighted the importance of projects such as these in improving access to electricity in Nigeria. 

He said, “Afam Three fast Power combined with the adjoining Afam Power Plc, will in the next few years add almost 1,000MW of electricity to the national grid. This will go a long way towards reducing the current power deficit while enhancing access to electricity for millions of private and corporate Nigerians, creating jobs, and ensuring the socio-economic development and well-being of the nation.”

PROOF OF COMMITMENT TO PROVIDING RELIABLE POWER 

However, the successful inauguration of the Afam Three Fast Power turbines is now a testament to the Transcorp Group’s commitment to providing reliable and sustainable power to Nigerians. The inauguration took place shortly after the second anniversary of Transafam Power’s operational takeover of the Afam Power Asset.

Transcorp Group remains at the forefront of driving Nigeria’s economic revitalisation through its power investments in Ughelli, hospitality through Transcorp Hotels and now Transafam.

Transafam Power Limited is one of the power subsidiaries of Transcorp Group and the core investor in Afam Genco, comprising Afam Power Plc and Afam Three Fast Power Limited.  The Afam Genco Power Plant is located at Okoloma Village, in Oyigbo LGA of Rivers State with a total installed capacity of 966MW. 

Transcorp Group is a publicly quoted conglomerate, with a diversified shareholder base of approximately 300,000. Its portfolio comprises strategic investments in the power, hospitality, and oil and gas sectors, with businesses comprising  Transcorp Hilton Abuja, Transcorp Hotels Calabar, Transcorp Power, Transafam Power, and Transcorp Energy.