Transcorp Group CEO speaks on 2023 growth strategy

Transnational Corporation, a conglomerate with investments in energy, power, and hospitality, has reported a significant revenue growth of 30.6% amounting to 82.1 billion naira in the first half of this year. The President and Group CEO of Transnational Corporation, Owen Omogiafo, sat down with CNBC Africa to delve into the group's business strategy and outlook moving forward. Omogiafo shared insights on the company's performance, highlighting both achievements and challenges across various business segments. The discussion also touched upon key issues such as the impact of gas constraints on power generation, growth projections, economic prospects, tourism, and the group's recent acquisition of a majority stake in a distribution company. Key Points: 1. Revenue Growth and Business Performance: Transnational Corporation's revenue surged by 30.6% to over 82 billion naira, with half-year profits reaching 16.1 billion naira. Omogiafo acknowledged that while the conglomerate's hospitality sector experienced robust recovery surpassing expectations post-COVID, challenges in the power sector hindered optimal performance due to gas supply and infrastructure issues. Despite these obstacles, the overall macroeconomic landscape in Nigeria displayed resilience and strength. 2. Gas Constraints in Power Generation: The CEO shed light on the severity of the gas supply challenges impacting power generation, revealing that current capacity utilization stands at 60% due to constraints. Issues such as leaks in critical gas pipelines like the Trans-Niger pipeline have hampered operations. Omogiafo emphasized the importance of addressing these gas bottlenecks, citing the government's renewed focus on resolving gas-related issues with the recent appointment of a Minister of Gas. 3. Growth Projections and Strategic Initiatives: Looking ahead, Omogiafo expressed optimism about surpassing previous performance levels in the second half of the year. He outlined key strategic initiatives in the power sector aimed at enhancing available capacity and achieving significant milestones in power generation. The company's commitment to expanding its grid presence and enhancing infrastructure aligns with its goal of catalyzing economic transformation in Nigeria. Quote: Commenting on the acquisition of a majority stake in Abuja Disco by the Trans College Consortium, Omogiafo stated, "Our overall strategy is to unlock the power opportunities in Nigeria, catalyze economic transformation, and focus on integrated investments ranging from gas acquisitions to end-user power distribution. Abuja Disco's strategic significance lies in positioning the company to enhance lives and foster advancements in Nigeria's power sector."