Facebook
Twitter
Instagram
Classic TV
Google Plus
RSS Feed

On Air

with Yinka and Zibby
Weekdays: 10am - 2pm

Listen Live

Elumelu Laments over Power Sector

Chairman of Transcorp Group and United Bank for Africa, UBA, Mr Tony Elumelu, has said Nigeria’s power sector will soon collapse if urgent action was not taken. Elumelu said: “The agency of government that is responsible for making sure that this sector delivers on its potential is not doing well enough. We are owed a lot of money. Transcorp Power Holdings is owed almost N50 billion. How do you survive in business like this, how? Other GenCos I know are actually dying. We are struggling because of our diversified resource base, what of others? Something urgent and drastic must be done. It is as urgent as yesterday. The truth is that Transcorp Power, as a key operator in the sector, is struggling. And if we are struggling, you can imagine what others are going through.”

 

According to Elumelu, the government started owing Transcorp when a dollar was N168, but may now pay back (in naira) when the dollar goes for 300 to N500, a massive depletion of value to shareholders. “Now, you put in an invoice and you get paid 15-20 percent. And they started owing us when the naira was N168 to the dollar. Today, it’s N300 officially and N500 on the black market to the dollar so imagine the depletion, the erosion of value to shareholders of Transcorp. Is that going to encourage more investment in the sector, how? We are all living on borrowed time.”

 

He explained that Transcorp was negotiating with GE to bring in turbines worth $500 million, but had to shelve the plan because the company could not secure the necessary foreign exchange for the deal.

Photo Credit: 
bellanaija.com

Connect

Facebook
Twitter
Instagram
Beat TV
Google Plus
RSS Feed
Download our apps

Contact

We are located at 26 Keffi Street, Off Awolowo Road, Ikoyi, Lagos

Telephone:

+234 (0) 1270.1020

+234 (0) 1463.1700

+234 (0) 1463.1701