Power Sector Will Soon Collapse — Elumelu
Chairman of Transcorp Group and United Bank for Africa, UBA, Mr Tony Elumelu, has said Nigeria’s power sector will soon collapse if urgent action was not taken. Elumelu spoke in an interview with CNBC Africa: “The agency of government that is responsible for making sure that this sector delivers on its potential is not doing well enough. We are owed a lot of money. Transcorp Power Holdings is owed almost N50 billion. How do you survive in business like this, how? Other GenCos I know are actually dying.
“We are struggling because of our diversified resource base, what of others? Something urgent and drastic must be done. It is as urgent as yesterday. The truth is that Transcorp Power, as a key operator in the sector, is struggling. And if we are struggling, you can imagine what others are going through.
According to Elumelu, Transcorp had asked the government to allow it generate its own gas, adding: “Where we are located, we are sitting on a lot of gas.” He explained that Transcorp was negotiating with GE to bring in turbines worth $500 million, but had to shelve the plan because the company could not secure the necessary foreign exchange for the deal.