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Business News

Transcorp Nigeria Plc to invest $2.5bn in power sector

The epileptic power supply has been a major bane to businesses in Nigeria. The problem affects both established businesses and small-scale businesses.

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Transcorp Annual General Meeting, Transcorp financial result, Transcorp Hotel

The Nigerian power sector is set to receive a major boost, as Transcorp Nigeria Plc disclosed its plans to inject $2.5 billion in the sector. Transcorp Nigeria Plc will make the investment through one of its subsidiaries, Transcorp Power.

Reiterating the Group’s commitment to the Nigerian power sector, the Chairman of Board, Mr Tony Elumelu, disclosed that Transcorp Power has so far injected about $1 billion in projects that have a combined capacity of 700Mw.

According to him, Transcorp Power submitted a bid for Afam Electricity Generation Co. earlier this month. Afam Electricity operates a natural-gas fired power generation plant in southern Rivers state.

Two other offers were, however, made on the Rivers-based electricity company, according to the Bureau of Public Enterprise (BPE). If Transcorp Power eventually acquires the facility, it would add 700Mw to the firm’s power portfolio.

“We’ve expressed interest in the acquisition of Afam power plant, which we’re going to spend a lot of money on. It’ll give us 1,400Mw and we can do more.” -Elumelu

However, Mr Elumelu lamented the fact that the Nigerian electricity sector is replete with debt, disclosing that Transcorp Power is owed as much as N90 billion ($250 million).

“If they’re owing you that kind of money, it affects your ability to do more and more importantly, slows your enthusiasm.”

Why Transcorp’s investment is crucial

A report from Spectator Index, as at January 2018, ranked Nigeria as the second worst country in power supply.

An international organisation, Power for All, also said that no fewer than 93 million Nigerians lacked access to electricity.

The epileptic power supply has been a major bane to businesses in Nigeria. The problem affects both established businesses and small-scale businesses.

Deal book 300 x 250

Consequently, so many companies have either closed shop or relocated their production bases to other African countries with more reliable power supply, in a bid to maximise production cost and efficiency. This has ultimately had various negative impacts on the Nigerian economy.

Transcorps’ power background

In September 2012 during the privatisation of Nigeria’s national power assets, Transcorp Nigeria Plc won the bid for the Federal Government of Nigeria’s distressed power generating company, Ughelli Power Plc – operator of Ughelli Power Plant. The $300 million investment was part of Heirs Holdings’ strategic commitment to USAID’s Power Africa initiative.

In November 2015, Transcorp Ughelli Power Limited and Ughelli Power Plc merged, and Transcorp Power Limited was born. The merger harmonized the management and operations of Transcorp’s power business for greater efficiency.

Famuyiwa Damilare is a trained journalist. He holds a Higher National Diploma (HND) in Mass Communication at the prestigious Nigerian Institute of Journalism (NIJ).Damilare is an innovative and transformational leader with broad-based expertise in journalism and media practice at large. He has explored his proven ability in the areas of reporting, curating and generating contents, creatively establishing social media engagements, and mobile editing of videos. It is safe to say he’s a multimedia journalist.

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Hospitality & Travel

MMA2 imports new x-ray machines from US

MMA2, Lagos took delivery of new x-ray machines ordered by Bi-Courtney Aviation Services Limited (BASL) to upgrade its facilities.

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The Murtala Muhammed Airport, Terminal 2, Lagos has taken delivery of new x-ray machines ordered by Bi-Courtney Aviation Services Limited (BASL) to upgrade its facilities on Friday.

This was disclosed by the Group Corporate Affairs Manager of BASL, operator of MMA2, Mikail Mumuni, in a statement on Friday.

He said, “The equipment imported from the US arrived the Murtala Muhammed International Airport, Lagos Wednesday night from where they were later moved to MMA2.

”Installation of the x-ray machines and air conditioners will commence on Friday evening and that this would be completed within one week.”

The BASL spokesperson quoted the acting Head of Business of the company, Mr. Ralph Uchegbu as saying that “the installation of the new X-ray machines and air conditionals will further reinforce the status of MMA2 as the nation’s pre-eminent airport terminal in terms of customers security and comfort.”

What you should know

  • BASL recently announced that it had invested over $500,000 massive upgrading of its X-ray machines and air conditioning systems for passengers safety, security and comfort.

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Corporate Press Releases

Peter Obaseki retires as Chief Operating Officer of FCMB Group Plc

Mr Peter Obaseki, the Chief Operating Officer of FCMB Group has retired from the financial institution.

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The Board of Directors of FCMB Group Plc has announced the retirement of Mr. Peter Obaseki, the Chief Operating Officer of the financial institution, with effect from March 1, 2021. He was also an Executive Director of the Group.

His retirement was approved at a meeting of the Board of the Group on February 26, 2021. This has also been announced in a statement to the Nigerian Stock Exchange (NSE) by the financial institution.

The Chairman of FCMB Group Plc’s Board of Directors, Mr Oladipupo Jadesimi, thanked Mr. Obaseki for his valuable service and excellent support to the Board for many years.

FCMB Group Plc is a holding company divided along three business Groups; Commercial and Retail Banking (First City Monument Bank Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank Limited); Investment Banking (FCMB Capital Markets Limited and CSL Stockbrokers Limited); as well as Asset & Wealth Management (FCMB Pensions Limited, FCMB Asset Management Limited and FCMB Trustees Limited).

The Group and its subsidiaries are leaders in their respective segments with strong fundamentals.

For more information about FCMB Group Plc, please visit www.fcmbgroup.com.

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