Owen Omogiafo, Group Chief Executive Officer of Transcorp Group, has on Monday (August 21, 2023) during an interview with Arise News revealed a determined pursuit of increasing available power capacity to 2,000 megawatts by year-end.
Omogiafo acknowledged the prior transmission and gas issues but emphasized the remarkable turnaround seen in Transcorp’s power business in the first half of 2023.
She said;
“In the first half of 2023, we focused on improving our mechanical available capacity. Although there were still some challenges with gas and transmission, we saw a great improvement in our power business.
“Going by the strategy we are working with, by year-end we will have about 2,000 megawatts of available capacity and with gas issues getting the focus, especially with the new Minister of state for gas who will focus on it noting that about 79% of Nigeria’s power is thermal, meaning gas fired.
“When these issues are resolved, we will, of course, get more value and continue to grow.”
Transcorp stake in AEDC acquisition
According to Omogiafo, Transcorp is a member of the consortium that bought a 60% stake in the Abuja Electricity Distribution Company (AEDC).
She claims that the acquisition was justified on the grounds that Nigeria is recovering and that the power sector is well-positioned to spearhead that recovery because no industry or sector can function without power.
“In 2013, when the initial privatization of the sector happened, Transcorp and others went in, the narrative was we are not generating enough power to meet our needs. Transcorp Group, being a patient investor, has done well in the generating space in the last ten years.
“As we moved on, we saw that the problem was shifting and not just about power generation but was about getting the power to the end-user. That is what led us and other investors to say let’s see how we can take what has been built by the generating companies down there.
“That is what has led the Transcorp-led consortium to the AEDC acquisition, and we are confident that we can fix it. People want reliable power and today with the rising cost of petrol and diesel, people are finding out that we can’t afford to be running our generators to sustain businesses.
“That is why we are leveraging upon the discipline and competence that we have as turnaround gurus, we will work with the other investors to turn around Abuja Disco so that it can serve the catchment areas that it covers and perhaps in doing such, industrialization, urbanization will grow.
In an effort to reinvigorate the distribution company after the acquisition, Christopher Ezeafulukwe, the current MD/CEO of Transcorp Power Limited, would assume the position of Managing Director/Chief Executive Officer (MD/CEO) at AEDC.
The Federal Capital Territory (FCT), the states of Niger, Kogi, and Nasarawa are the areas that will gain from the revival.
What you must understand
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.
