The market value of Transnational Corporation Plc (Transcorp Group) has reached a significant milestone, now valued at N4.5 trillion (approximately $3 billion), according to the company’s chairman, Tony Elumelu. Elumelu made this announcement at the 19th Annual General Meeting (AGM) of Transcorp on Thursday, as reported by Nairametrics.
He took the opportunity to reflect on the growth of the company, revealing that when his team took over in 2011, Transcorp’s market capitalization was under N20 billion. Elumelu acknowledged the role of the company’s shareholders in the years of growth and transformation that led to this achievement.
“When we took over this company in 2011, the market cap of Transcorp was actually N20 billion. Today, the group’s market cap is N4.5 trillion,” Elumelu stated. “When we took over this company, it was founded in 2004. By the time we took over in 2011, we had not paid dividends even once. But since we took over, we have consistently paid dividends to shareholders,” he continued during a press interview.
In the same meeting, Transcorp published its financial results for the year ending 31 December 2024. The company reported a pre-tax profit of N136.6 billion, marking an impressive 132.41% increase from the N58.8 billion reported the previous year, driven by substantial revenue growth.
The Group’s total revenue for the year reached N407.9 billion, a 107.07% increase from N196.9 billion in 2023, with the power sector contributing 82.8% of the total. Gross earnings for 2024 amounted to N408 billion, reflecting a 107% increase from N197 billion in 2023. The company’s total assets grew by 42%, reaching N751.6 billion by the end of 2024, compared to N529.9 billion in 2023. Shareholders’ funds increased by 45%, from N187.3 billion in December 2023 to N271.7 billion by the end of 2024.
The Board of Directors recommended a full dividend of N1.00 per share, following the approval of more than 70% of the company’s shareholders. This dividend comprised an interim dividend of 40 kobo (equivalent to 10 kobo per share before capital reconstruction) paid on 7 August 2024, and a final dividend of 60 kobo per share, totalling N10.16 billion.
During the AGM, Elumelu reiterated that the power sector remains the most critical challenge facing Nigeria’s economy, particularly as the non-oil sector is expected to play a larger role in driving economic growth. He stressed that resolving power issues was key to transforming Nigeria’s economy.
“We must be able to fix power to fix and transform Nigeria,” Elumelu emphasised.
He also pointed out that key challenges, such as illiquidity, inadequate infrastructure, and limited gas availability, remain unresolved in the power sector, despite significant investments over the years. Elumelu disclosed that the federal government currently owes Transcorp over N600 billion (approximately $400 million), placing a considerable strain on the company.
“Much as we, as patriotic Nigerian investors, are committed to supporting the development of the federal government in facing the economy, we have been under the excruciating burden of subsidizing the sector,” he said. Elumelu described the current situation as unsustainable and stressed the urgent need for action.
He acknowledged the efforts of the federal government, particularly under President Bola Tinubu’s administration, aimed at addressing the debt owed to generating companies (Gencos), increasing access to meters, and separating independent system operations. However, he urged that these well-intentioned initiatives must be executed swiftly and efficiently to avoid a collapse of the sector.
Elumelu called on those responsible for implementing the President’s power initiatives to prioritise this crucial national issue. He urged the government to expedite the payment of the outstanding debt and address key infrastructure challenges, particularly the development of gas and power transmission systems.
“I believe the new leadership at the Nigerian National Petroleum Corporation (NNPC) will play a vital role in ensuring that the necessary incentives are provided to stimulate investment in gas infrastructure,” Elumelu concluded.