Chairman of Transnational Corporation Plc, Mr. Tony Elumelu, on Monday advised the Federal Government to expedite the payment process of the over N2 trillion debt owed power generation companies (Gencos) to avert further worsening of electricity supply nationwide.
Speaking at the 18th annual general meeting (AGM) of the corporation in Abuja, Elumelu said the debt had been impacting negatively on the generation companies’ operations in terms of paying their gas suppliers, thereby adversely affecting the quantity and reliability of gas supply GenCos.
According to him, the distortion in the liquidity flow in the sector based on the debt owed the Gencos by the Nigerian Bulk Electricity Trading Plc (NBET) currently is over N2 trillion.
The top industry player, whose group owns Transcorp Power, lauded the present administration on its the power sector reform initiatives in view of the transformational potential in the sector.
He said: “I therefore, welcome recent pronouncements by the federal government affirming its commitment towards paying the debt owed to the Gencos. I urge speedy implementation of actions necessary to translate the pronouncements to achievements.”
On the Transcorp Power acquisition status, Elemelu informed the shareholders that the dollar–denominated acquisition loan for Transcorp Power had been fully settled.
The banker and investment expert clarified: “In 2024, we plan to continue the strong group’s financial performance by maximising the potential of our subsidiary businesses, leveraging innovation, enhancing brand equity, and exploring business expansion opportunities into other key sectors.”
Elumelu also hinted that the firm planned to increase and maintain its combined available generation capacity to 908 megawatts this year from 710 megawatts in 2023 by taking “advantage of the bilateral power sale opportunities arising from the enactment of the 2023 Electricity Act by entering into agreements with strategic electricity distribution companies and eligible customers.
“In addition, we will further consolidate the existing benefits from our membership of the West African Power Pool by increasing our share of the regional electricity market”, he added.
Commenting on the worrisome level of energy thefts in the country, Elumelu lamented that the incidents remained a huge setback and frustrating factor for distribution companies (DisCos) and other value chains in the power sector, noting that apart from the loss of revenue resulting directly from stolen electricity, DisCos are suffering huge losses and damages due to vandalism of their infrastructure to the menace.
To mitigate the challenge, the investor advocated the establishment of special courts with powers for summary proceedings to exclusively deal with energy theft cases.
He expatiated: “While I note the provisions of the Electricity Act 2023 regarding criminal punishment for energy theft. I recommend the establishment of special courts with powers for summary proceedings to exclusively deal with cases of energy theft. There should also be a process of naming and shaming convicted energy thieves irrespective of their status in the society.
As of today, TCN is owned 100 per cent and Discos ore owned 40 per cent by the federal government, who also holds ownership interests in some GenCos. To enable the sector to be efficiently run by the private sector, I recommend that the federal government should come out with a clear timeline for the full privatisation of the power sector, starting with the DisCos and Transmission Company of Nigeria.”
“I look forward to a fully reformed and unleashed Nigerian power sector, fully contributing, as it must, to Nigeria’s economic renaissance and social rebirth”, Elumelu added.
