By Stephen Ubanna
Tony Elumelu, founder of Tony Elumelu Foundation, TEF, and Chairman of Transnational plc, and other declared conglomerates listed in the Nigeria Stock Exchange, SEC, is a happy man. Elumelu’s source of happiness was that his diversified investments in the nation’s power sector, hospitality and oil and gas sector was not a waste after all.
The Consortium, power business which had increased available and generation capacity from 598MW and 240 MW to 720MW and 426MW, respectively, between 2013 and now, following significant investment and rehabilitation of its generating assets at Ugheli , gas plant in Delta state and Afam , in Rivers state, appear to have won the confidence of President Muhammadu Buhari. That the company can deliver on its mandate.
The Company’s local Engineers had carried out the most sensitive repair work in a gas turbine at the 966 MW Afam power plant, without foreign technical support which was said to have saved Nigeria huge foreign exchange spending. The Transcorp Group Chairman was emphatic that’’ their plants are managed and fully operated by Nigerians’’, thus ‘’creating jobs and reducing unemployment in the country’’. He may have gladdened the heart of Nigerians when he said that ‘’since the company started operations in 2013, it has recorded zero incident till date’’.
The Katsina born Nigerian President, who is counting days in office to handover to Asiwaju Bola Ahmed Tinubu, a former governor of Lagos state and the President-elect on the Platform of ruling All Progressive Congress, APC, appear to have shown that the government appreciates the contributions of Transnational Conglomerate to reposition the nation’s power to ensure stable power supply.
This is evident as the National Council on Privatisation, NCP, under the Chairmanship of Vice President Yemi Osinbajo, has approved the acquisition of the Abuja Electricity Distribution Company, AEDC, by the Consortium. The Nigerian NCP, may have been encouraged to do so because of the Trans afam outstanding performance, at the 240MW, Afam 3-Fast Power plant, located in Afam, Rivers state.
There is no gainsaying the fact that with the inauguration of the Afam 3-Fast Power plant, operated by the Group. It has brought its Cumulative generating capacity of the plant to 1,000MW. As a prelude for the Transcorp power to increase its Power generation, the Nigerian Electricity Regulatory Commission, NERC, was said to have made a payment of N40 billion security for gas suppliers .
Some of the Gas Company Marketers that may have benefited from the N40 billion security payment included Nero Oil and Gas, Pigging Products Limited, Nigerian Gas Company, Bell Oil and Gas, Clean Global Gas, Intralog Nigeria, Cranes R-us Nigeria Limited,Desopa Engineering Limited, and Maersk Nigeria Limited, and Mon International ervices and Supply Co. Others are Boc Nigeria Boc Gases, Time Logistics Limited, Soar Global Resources Limited, Oil Related Ventures Limited, Nikosking Invest Limited.
This may have informed why the Transcorp Consortium Chairman, who could not hide his feelings had called on the incoming Tinubu’s Administration ‘’to increase gas supply to power generating plants across the country to ensure a reliable and table power supply.
Given the superlative performance of the Transcorp Power Generation Company since it took over effective control of Ughelli Gas and Afam power plants in fulfilling all its obligations between 2013 and now, the NCP, at the instance of the Nigerian President, was encouraged to issue the Company with ‘’the post-privatisation Certificate award’’ , on Monday, May 8, 2023, at an impressive Ceremony in Abuja.
In presenting the heart-warming Certificate to the Company, at the meeting of the NCP, an elated Vice President Osinbajo , noted that Transcorp Power Limited , described as Nigeria’s leading power generation Company located in Ughelli, Delta state, has’’ fulfilled all Privatization conditions’’.
He asserted to the appluause of the shareholders present and the Management Team, including staff of other subsidiaries of the Transcorp Group, that ‘’Transcorp Power will no longer be subjected to post- privatization monitoring’’ .
The Value News findings shows that ‘’it is the first privatized government power generation Company to achieve this milestone’’ since the power sector privatization commenced in 2013. Recall that the government had set a minimum of 670MW available capacity for the Transcorp plant to achieve but it has gone beyond it to hit a cumulative generation capacity of 1000MW, in 10 years.
Given an insider information of the post- 0privatisation programme of the government , Vice President Osinbajo, disclosed that ‘’the post –privitization monitoring was an important aspect of the government’’ , noting that ‘’Transcorp power has been able to ensure compliance and surpassed expectations with all post-privation deliverables’’.
He was said to have urged the Transcorp team ‘’to continue in that path of performance and even do better in the future’’. He averred that the post-privatization Certificate issued to Transcorp power which was the first to be carried out by the NCP, would not be the last post-privatization event in the country’’.
Alex Okoh, Director General of Bureau of Public Enterprises, BPE, on his part was said to have congratulated the Board and Management of Transcorp for the milestones achieved in the last 10 years in turning around the enterprise for good. He had corroborated Vice President observation when he noted that Transcorp has ‘’met and exceeded the performance targets and all other covenanted obligations agreed during the signing of the privatization agreement in 2013’’.
He opined that Transcorp power plant had increased its generation capacity by 227% from its operational stutus as at the handover in 2013, by the Nigerian government. The BPE, Director General, may have shocked Nigerians when he said that the ‘’capital expenditure totaling N68.612 billion was covenanted for phase I, phase II, as additional investment , but stated that the actual investment made by the Transcorp power company was N83.85 billion, leading to a score of 143%.
He was said to have concluded his speech by stating that Transcorp invested and increased the power plant available capacity to 680MW, within four years of takeover from the BPE, surpassing the 5-year target of 670MW set by the BPE. He did not stop there.
He was said to have stated further that Transcorp Limited, which is a member of West African Power Pool and a Participant in Economic of West African States, ECOWAS , Regional EElectricity Market,’’ not only supplies electricity to the Nigerian market but to the ECOWAS Regional market as well’’
An Appreciative Elumelu, the Transcorp Chairman, had thanked the government for ‘’their trust and confidence’’ in the Company. He stated that in addition’’ to fulfilling the post – privitization performance criteria, the power company was driven by a strong indigenous agenda’’.