The power sector in Nigeria has long been plagued by inefficiencies, inadequate infrastructure, and a lack of sustainable power generation.
However, recent developments and investments by companies like Transcorp Group, Nigeria’s leading conglomerate, are bringing hope for a brighter future. Transcorp has strategic investments in power, hospitality, and energy.
In power, the Group has two subsidiaries, Transcorp Power Limited and Transafam Power Limited (TAPL), which recently commissioned the Afam III Fast Power boosting the national grid by 240MW.
The company’s Managing Director/CEO Vincent Ozoude took the message of sustainable power to Twitter Spaces in a session on Thursday, where he discussed the crucial role of sustainable power generation in transforming the power sector and, subsequently, Nigeria’s economy.
Transafam Power Limited has made significant strides in the power sector since its inception. Through its acquisition of AFAM POWER PLC and AFAM 3 FAST POWER LTD, TAPL has added a combined capacity of 966MW to its portfolio.
This introduction of private sector discipline, expertise, and resources has brought about a transformation in the sector.
Ozoude highlighted the immediate investments made by TAPL to increase the capacity of the acquired plants.
Within just seven weeks post-takeover, the company successfully raised the capacity from 48MW to 118MW, providing an incremental 72MW to the National Grid. This demonstrates the gains of privatisation and the positive influence of TAPL’s entry into the sector.
One of the significant contributions of Transafam Power to the power industry is the concept of Fast Power. This innovative approach allows for the rapid deployment of power generation to any location, addressing the urgent need for increased electricity supply.
The recently commissioned Afam III Fast Power plant, with its 240MW capacity, adds a substantial boost to Nigeria’s national grid.
This leap in power generation capacity not only powers millions of homes but also supports the growth of small and medium-scale enterprises, manufacturing industries, and the overall economy.
Speaking during the Twitter Spaces session, Ozoude highlighted several challenges that currently affect the operations of power generation companies in Nigeria.
These challenges include gas supply for gas-fired thermal power plants, the need for transmission and distribution infrastructure improvement, foreign exchange (FX) constraints for offshore components and maintenance, and liquidity issues.
To effectively address these challenges, Ozoude emphasized the importance of resolving outstanding payments to power generation companies, creating a self-sustaining electricity market, improving transmission and distribution infrastructure, and addressing the FX constraints faced by the sector.
These steps will ensure stability, increase efficiency, and attract further investment in the power sector.
Transafam Power has also actively contributed to community development and engagement. The company has created direct and indirect employment opportunities within its operating locality and supported local supply chains.
Furthermore, Transafam operates a well-equipped cottage hospital, as well as primary and secondary schools in its host community, Okoloma Ndoki, as part of its corporate social responsibility initiatives.
Looking ahead, Ozoude envisions a future where the power sector in Nigeria experiences significant growth, leading to improved per capita income, GDP growth, and job creation.
He sees the sector playing a vital role in driving industrialisation, infrastructure development, and overall economic progress.
Transafam Power, guided by Transcorp’s vision of improving lives and transforming Africa, aims to be a key player in realizing this vision.
According to him, the recent signing of the new electricity bill by the President has also brought optimism to the power sector.
The liberalisation of the sector, recognition of renewable energy, and the wider stakeholder participation allowed by the new legislation will pave the way for increased collaborations, consumer benefits, and accelerated development.
Transcorp Group is also making impact in the power sector through Transcorp Power Limited, a leading power generation company in the country.
Transcorp Power Limited owns and operates a Power Plant in Ughelli, one of the largest gas-fired power plants in Nigeria with an installed capacity of 972 megawatts. The plant is located in Delta State and has been a major contributor to Nigeria’s power generation capacity.
Transcorp’s investments in the power sector are aligned with its overall mission of transforming lives and driving economic development in Nigeria and Africa as a whole.
By focusing on power generation, Transcorp aims to address one of the critical challenges hindering economic growth and development in Nigeria – the inadequate power supply.
