Nigerian Government Selects Transcorp Group for Abuja Electricity Distribution Company

The Nigerian government made an announcement yesterday, revealing that the Transcorp Group has been chosen as the preferred bidder for the Abuja Electricity Distribution Company (AEDC). The Vice President of Nigeria, Prof. Yemi Osibanjo, shared this information during the inauguration of the AFAM 3 Fast Power Project in Port Harcourt, where he represented the President. He further stated that the National Council on Privatisation (NCP), led by Vice President Osinbajo, has already granted approval for the acquisition of the AEDC by the Transcorp Group. The NCP is responsible for overseeing the privatization and commercialization of public enterprises in Nigeria.

He stated, "Our current challenge is for the industry to take advantage of the improved commercial environment to ensure sustainable electricity supply and enhance service for all citizens. This administration has made significant progress in this regard."

Elaborating on some major achievements, he added, "These accomplishments include Quest PLC becoming a key investor in Yola DisCo with a transaction valued at N19 billion in 2020. Last month, the NCP approved the 30-year concession for the Zungeru Hydro Power Plant, amounting to $70 million per year. Overall, the Nigerian electricity supply industry is experiencing positive developments."

He emphasized that the Nigerian Electricity Regulatory Commission has successfully carried out all of its bi-annual review processes since 2020, highlighting this as a notable departure from the past.

A STATEMENT BY TONY ELUMELU

Mr. Tony Elumelu, the Chairman of Transcorp Group, expressed his commitment to ongoing investments in the sector and stated, "We are all aware of the significance of power in Nigeria and the far-reaching impact of power deficits on our people, businesses, schools, hospitals, and institutions. Today, I am proud that we have brought together numerous key stakeholders. I believe we can share a success story from Nigeria, one that can be replicated if the government, communities, and private sector collaborate as we have done here at Afam."

He continued, "Our partnership with Transcorp Group began in November 2020 when we signed the Afam power share sale and purchase agreement in the presence of the Vice President of Nigeria. Although the journey hasn't always been smooth, we have delivered on capacity recovery, plant investment, infrastructure improvement, strong community relationships, and the transformation and motivation of our Nigerian workforce. We are fulfilling our commitments to the government."

Mr. Elumelu highlighted the critical role of the power sector in lifting people out of poverty and driving job creation, stating, "As a stakeholder in the power sector, Transcorp Group recognizes that power is the most crucial factor in building a better Nigeria. It has been a strategic priority for us since the inception of Hairs Holdings. We firmly believe that doing well means doing good. Power is a public good, a right, and a catalyst for a prosperous Nigeria."

He extended a warm welcome to the Vice President, emphasizing his role as Chairman of the National Council of Privatisation and the confidence it instills in the private sector's ability to drive economic growth and progress. Mr. Elumelu highlighted Transcorp's track record of successful revitalization programs since its establishment in 2006, including the significant capacity recovery achieved at the Transcorp power plant in Ugheli, where electricity generation increased by 60 megawatts to over 6080 within five years.