Bureaucratic Delays Hindering Electricity Sector Reforms- Elumelu …As Transcorp Reels Under N600bn Power Sector Debt

Tony Elumelu, the Chairman of Transnational Corporation (Transcorp plc), has raised alarm over the mounting financial pressure on the Nigerian power sector, revealing that his company alone is owed more than $400 million, translating to over N600 billion.

Speaking to journalists on the sidelines of the of Transcorp’s 19th Annual General Meeting (AGM) on Wednesday in Abuja, Elumelu called for urgent action to address the long-standing debt in the electricity sector, an industry vital to the success of President Tinubu’s economic growth strategy.

“We are great supporters of President Tinubu’s Renewed Hope agenda,” Elumelu said, acknowledging the administration’s ambitious goal of building a $1 trillion economy.

“But we know that to grow this economy, electricity must be fixed. That is not the case today.”

Elumelu’s remarks come amidst growing frustration within the energy sector, where inadequate power supply and mounting debts have stifled growth and investment.

Despite the president’s directive last year to remove all impediments to the sector’s growth, Elumelu pointed out that bureaucratic resistance remains a significant obstacle.

“The President directed last year that all impediments to the power sector should be removed,” he continued.

“But I am afraid to say that critical people who should have helped see the president’s vision come alive are afraid to do so.”

Elumelu’s comments underscore a concerning disconnect between the intentions of the highest levels of government and the execution on the ground, where the power sector continues to struggle with inefficiencies and unpaid debts.

The businessman used the platform to appeal directly to those responsible for driving reforms, urging them to translate presidential directives into actionable steps that will benefit millions of Nigerians in dire need of consistent electricity supply.

“Nigerians need improvement in access to electricity,” he stressed.

“The power sector is owed a lot of money. Transcorp group alone is owed over $400 million, which is over N600 billion. We want this paid so that we can help actualize the President’s vision for improving electricity supply to Nigeria.”

Source: BusinessDay