Transcorp Power’s recent listing on the Nigerian Exchange (NGX) has stirred controversy and speculation, shedding light on potential governance issues and unsettling investors. The focal point of this unfolding drama is Tony Elumelu, a prominent figure in Nigeria’s corporate sphere, whose strategic moves have drawn scrutiny from some investors.<\/p>\n
Critics argue that Elumelu’s actions may sideline minority shareholders in favor of larger stakeholders, raising questions about equity distribution and corporate transparency. The controversy stems from Elumelu’s decision to list Transcorp Power as an independent entity on the NGX, ostensibly to solidify its position in Nigeria’s energy sector. However, this move has sparked debate over the fairness of equity distribution and corporate practices in Nigeria, citing previous spin-offs such as United Capital and African Prudential from Elumelu’s holding UBA Plc as examples of strategies that allegedly disadvantage minority shareholders.<\/p>\n
Opinions vary widely regarding Elumelu’s motives for listing Transcorp Power. Some view it as an effort to emulate successful figures like Femi Otedola, positioning Transcorp Power as a leader in Nigeria’s energy market. Others speculate that Elumelu’s primary aim is to boost his own wealth and secure a place on the Forbes billionaires list, suggesting personal ambition may outweigh benefits to the company or its shareholders.<\/p>\n
However, Elumelu’s other venture, Heirs Oil and Gas, faces challenges, including significant losses due to oil theft, which could impact his net worth valuation and aspirations for the Forbes list. Critics allege that local media reluctance to report on such issues stems from UBA’s advertising dominance in Africa, discouraging negative coverage that could tarnish Elumelu’s reputation.<\/p>\n
Criticism has also surrounded the listing strategy, particularly the small number of shares available for public trading (0.05% of the total), which raises concerns about market manipulation and transparency. The lack of clarity in share allocation during the book building process has drawn complaints from minority investors, further questioning the listing’s fairness.<\/p>\n
United Capital, controlled by Elumelu’s family office Heirs Holdings, played a key role in organizing the listing, prompting scrutiny of its involvement in other financial transactions related to Elumelu’s assets. As Transcorp Power is a significant player in Nigeria’s electricity supply chain, its corporate governance practices have broader implications for the national economy. Regulators and market participants continue to grapple with the need for robust governance frameworks to protect minority shareholder interests.<\/p>\n
The listing has sparked a wider conversation about corporate governance in Nigeria, with hopes that the controversy will drive improvements in standards across the market. However, concerns remain about the transparency and fairness of corporate practices, underscoring the importance of maintaining investor confidence and sustainable economic growth.<\/p>\n","protected":false},"excerpt":{"rendered":"
Transcorp Power’s recent listing on the Nigerian Exchange (NGX) has stirred controversy and speculation, shedding light on potential governance issues and unsettling investors. The focal point of this unfolding drama is Tony Elumelu, a prominent figure in Nigeria’s corporate sphere, whose strategic moves have drawn scrutiny from some investors. Critics argue that Elumelu’s actions may […]<\/p>\n","protected":false},"author":12,"featured_media":25195,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[180],"tags":[],"class_list":["post-25194","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"aioseo_notices":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/25194","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/comments?post=25194"}],"version-history":[{"count":2,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/25194\/revisions"}],"predecessor-version":[{"id":25241,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/25194\/revisions\/25241"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media\/25195"}],"wp:attachment":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media?parent=25194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/categories?post=25194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/tags?post=25194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}