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Transcorp Power debt: Mother company resolves to press FG, NBET further on recovery

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Transcorp Power Limited mother company, the Transnational Corporation of Nigeria has announced its resolve to apply more diplomatic pressure on the federal government to recover its debt.

The power subsidiary of Transcorp is owed by the Nigerian Bulk Electricity Trading Plc (NBET)

The decision was made known Monday in Abuja at the 13th Annual General Meeting of the group by its chairman, Mr. Tony Elumelu.

Transcorp’s management had in 2018 said they had only received full payments from the NBET for up to July 2017 which meant that payments for subsequent months are still pending.

From NBET sources, between January and February 2018, payments to GENCOs amounted were 12.62 per cent and 42.99 per cent of total invoiced figures for electricity supplied respectively  which had led to worry for the company’s shareholders.

However, Elumelu, noted that the company has been doing quite a lot to improve shareholders’ value or wealth and added that it is embarking on several initiatives to ensure the performance of the company will be much better in 2021.

“Towards making sure that 2021 is better than 2020, the Group has been doing quite a lot to improve shareholders’ value or wealth. With regards to Transcorp power limited, we have addressed the gas supply issues and the focus in 2021 is to increase our available capacity taking into consideration the limitations of the country’s transmission’s infrastructure.

To this end, three of our generating turbines which were strategically taken out of inventory for refurbishment during the year will be returned to the country and to the plant in 2021. These turbines contribute about 300Megawatts of electricity per day, this together with the assured gas supply, provides a solid foundation for a strong performance in 2021.

We plan to consolidate on the existing benefits from our membership of the West African Power Cone by expanding our electricity sales and supply across the West African regional markets and we will continue to engage with NBET and the FG in finding a practical solution to the legacy debt owed to Transcorp Power Limited”, He stated.

Speaking on the group’s hospitality segment, Elumelu said, Transcorp will continue to drive the new product line introduced by the management in 2020 and added that the hotel is at a final launch stage of a world class business line and this business line will leverage technology and increase the company’s footprints across Africa.

“Our management took several initiatives to embrace the changes created by the pandemic and re-invented itself to take part in the opportunities to adapt to the new norm.

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