In a transformative move that has reverberated through Nigeria’s power sector, a consortium led by Transcorp has accomplished a landmark acquisition of a 60 percent stake in the Abuja Electricity Distribution Company (AEDC). This strategic maneuver not only strengthens Transnational Corporation’s position within the nation’s electricity distribution landscape but also elevates the group’s overall market capitalization to an impressive N540 billion.
The pivotal moment came in May 2023 when the National Council on Privatization granted its approval to the Transcorp-led Consortium as the new strategic investor in the Abuja Electricity Distribution Company. This decision marked a significant milestone, integrating one of Nigeria’s key power distribution companies into the Transcorp portfolio. The acquisition of a stake in AEDC holds the promise of revitalizing and rejuvenating its operations, which encompass a sprawling service area covering the Federal Capital Territory, Niger State, Kogi State, and Nassarawa State.
At the forefront of this endeavor is Christopher Ezeafulukwe, a distinguished figure in the Nigerian power sector. Currently serving as the Managing Director and CEO of Transcorp Power Limited, Ezeafulukwe brings a wealth of experience and a proven track record to his new role as the Managing Director and CEO of AEDC. His past achievements include overseeing Transcorp Power Ltd, Ughelli, a 972-MW thermal plant that has consistently exceeded expectations and set new standards in the Nigerian power landscape.
Under Ezeafulukwe’s leadership, Transcorp Power Ltd achieved a remarkable feat by becoming the first successor power company from the 2013 power privatization program to receive clearance from post-privatization monitoring by the National Council on Privatization. This milestone serves as a testament to the company’s dedication and its ability to surpass even the most ambitious projections set by the council.
A shining example of Transcorp’s transformative prowess is the Ughelli Power plant acquisition during the 2013 power sector privatization initiative. The plant’s available capacity skyrocketed by an astounding 227 percent within just four years, climbing from 160 MW at the time of acquisition to an impressive 680.83 MW. This achievement not only exceeded the Bureau of Public Enterprise’s (BPE) five-year target of 670 MW but also underscored Transcorp’s commitment to driving positive change within Nigeria’s energy sector.
Transcorp’s influence extends beyond power generation, encompassing subsidiaries such as Transafam Power Limited and Transcorp Hotels Plc, the owner of the renowned Transcorp Hilton Abuja. These entities have consistently demonstrated their commitment to generating both economic and social value. Collectively, these subsidiaries contribute to the group’s substantial market capitalization of over N540 billion, exemplifying the principles of Africapitalism endorsed by Tony Elumelu, the Group Chair.
Insiders within the industry are optimistic about Ezeafulukwe’s ability to revitalize AEDC, a company that holds a pivotal role in supplying power to Nigeria’s capital city. With his proven expertise and extensive experience, Ezeafulukwe is expected to drive AEDC’s transformation under the Transcorp banner, solidifying the group’s reputation as a major player within Nigeria’s dynamic power sector.
As Transcorp continues to expand its influence and consolidate its presence, its endeavors are poised to shape the trajectory of Nigeria’s energy industry, fostering socio-economic growth and development. This acquisition signifies not only a strategic business move but also a commitment to the nation’s progress, aligning with the company’s ongoing dedication to driving positive change on both economic and social fronts.