By Odita Sunday
To the ordinary man on the street, the current economic hardship that pervades the nooks and cranny of Nigeria is an indication that various economic policies of the present administration led by President Bola Ahmed Tinubu and those who came before him have not helped the country. The argument easily gets popular support within the context of fuel subsidy removal (on 29th May, 2023) as the Tinubu administration on inception had predicated its economic survival on consumers paying the actual price for petroleum products so that there would be enough money to provide the necessary infrastructure and better life for the citizenry. Today, reverse has been the case and things have unarguably become worse in every sector of the economy.
However, in spite of government’s mismanagement of the macro-economy, a quiet revolution fueled by the visionary leadership and entrepreneurial spirit of one man, Dr. Tony Elumelu has steadily been unfolding. As the founder of the Tony Elumelu Foundation and chairman of Heirs Holdings, Elumelu has been a driving force within Nigeria’s economic resurgence space through the creation of opportunities and stimulating growth, courtesy of his innovative investments and philanthropic efforts which have even been extended to some other Africa countries.
Following his retirement as a top notch banker from the United Bank for Africa (UBA) in 2010, Elumelu as a strategic investor took a controlling interest in Transcorp; a publicly traded Nigerian conglomerate with diversification in agriculture, power generation, oil production and hospitality. He also founded Heirs Holdings, which invests in the financial services, energy, real estate and hospitality, agribusiness, and healthcare sectors. In the same year, he established the Tony Elumelu Foundation (TEF), an Africa-based and African-funded philanthropic organisation.
With a philosophy that centres on what is described as Africapitalism which is a belief that the private sector is a key enabler of economic and social wealth creation, Elumelu takes pride in advancing the frontiers of entrepreneurship in Africa. Africapitalism positions Africa’s private sector and most importantly entrepreneurs as the catalyst for the social and economic development of the continent.
The Tony Elumelu Foundation which was founded in 2010 has the mandate of empowering women and men across the African continent through entrepreneurship. The Foundation has a business management training that equips entrepreneurs with the technical and soft skills needed to run a successful business. Over the years, the Tony Elumelu Foundation with its philanthropic initiative committed to empowering African entrepreneurs has assisted thousands of African entrepreneurs from various countries of the continent. The assistance is usually given to African entrepreneurs with business ideas or existing businesses under five years.
At the beginning of every year since the Foundation was established, young African entrepreneurs have often been encouraged to apply for what is described as “seed capital” that comes in thousands of dollars. In a testament to its unwavering dedication to empowering African entrepreneurs, the Foundation on Friday March 22, 2024, announced the selection of over 1,000 promising entrepreneurs from across 54 African countries as beneficiaries of its prestigious Entrepreneurship Programme for 2024. The unveiling of the new cohort marked the 10th edition of the 10-year-long initiative.
While giving a keynote address at the unveiling event, Elumelu said that he is proud of what the Foundation has accomplished in the 10 years since its inception. “These 1,104 young men and women from 54 African countries will each receive a non-refundable $5,000 seed capital,” he said. We believe in spreading luck, we believe in democratizing luck, we believe in prosperity, and we think that the easiest way to spread prosperity in Africa is by identifying our young ones, encouraging them and helping them to start their own businesses. Till date, over 20,000 young men and women from across Africa have received over $100 million in support of their program. We are happy to see our young ones progressing.” It is interesting to note that there is already a multiplier effect in the philanthropic initiative of Tony Elumelu through his Foundation as beneficiaries are reportedly leading trailblazing businesses in the various communities, creating jobs and exporting local African products to the global market.
Born 22nd March 1963 at Onicha Ukwu, in Aniocha North Local Government Area of Delta State, Elumelu can best be described as pan-African economist, entrepreneur, and philanthropist with deep interest and passion for Heirs Holdings, the United Bank for Africa, Transcorp and The Tony Elumelu Foundation through which the Nigeria economy has received some boost. For example with an inherited ageing and bloated workforce, entrenched in outdated operational practices and minimal accountability typical of government-operated entity, it could only be miraculous and the ingenuity of men with Midas touch for a power plant operating 164MW to suddenly upscale to about 670MW within four years. This is the story of Transcorp Power Plc, an electric power generating company and subsidiary of Transcorp Plc which bought the old Ughelli Power Plant (UPP) through the privatization process.
Transcorp Plc; a power subsidiary of Transnational Corporation Plc (Transcorp Group), with 51% stake in the consortium arrangement with others in what was then known as Transcorp Ughelli Power Plant had bided for the acquisition of UPP offering $300 million which invariably became the winning bid. The plant’s output was merely 164MW, significantly below its installed capacity of 972MW with many of the turbines in varying states of disrepair and some even cannibalized for parts to repair others.
Despite these challenges, the management of Transcorp Plc under the leadership of Dr. Tony Elumelu were driven by a vision to establish an integrated power company that would contribute to national development and generate value for its shareholders The recent listing of Transcorp Power has cast a spotlight on the significant achievements stemming from the foundations established nearly a decade ago by the pioneer management, simultaneously opening new avenues for potential investors to join in what has turned a success story.
With the company now valued at $1.1 billion, from its initial acquisition prize of $300 million, Transcorp and its collaborating entities have generated over $800 million in value within ten years. This remarkable growth is evidenced by the surge in power output from an initial 164MW to a peak of 670MW in 2017, and a current stable capacity of approximately 500MW. Moreover, the transformation includes a streamlined and skill-enhanced workforce alongside notable improvements in operational efficiency.
It is revealing that the Nigerian Stock Exchange (NGX) mandates that listed companies offer 20% or N20 billion (in value) of their shares as free float.
However, the shareholders of Transcorp Power have exceeded this requirement threefold, contributing well beyond the N20 billion mark, amidst a significant overflow of demand from investors eager to partake in the company’s success narrative. Transcorp Plc’s shareholders are witnessing the fruits of their investment, as Transcorp maintains its majority stake of over 50% in Transcorp Power. Consequently, all the benefits stemming from the growth of Transcorp Power are set to continually flow back to Transcorp shareholders in the form of dividends, ensuring a sustained reward for their investment.
Politically, Tony Elumelu may not officially be aligned to any of the political parties in Nigeria, yet his dynamic and entrepreneurial nature has always endeared him to any government in power such that he has continued to be reckoned with, as a progressive-minded statesman and the sky seems to be his starting point.