NGX Remains Catalyst for Economic Growth—Chiemeka

March 5, 2024
Jude Chiemeka NGX

By Aduragbemi Omiyale

The acting chief executive of the Nigerian Exchange (NGX) Limited, Mr Jude Chiemeka, has described the bourse as a catalyst for economic growth and development.

He said this at the listing of 7.5 billion ordinary shares of Transcorp Power Plc at N240 per unit at the exchange on Monday. The energy firm raised the market capitalisation of the trading platform by N1.8 trillion yesterday.

According to him, the inclusion of Transcorp Power into the NGX, the first listing of the year, underscored the pivotal role the bourse plays in shaping Nigeria’s economic landscape.

He added that NGX is not just a platform for trading stocks, stressing that, “It is a catalyst for economic growth and development, and we recognize our responsibility in supporting the government’s privatization efforts, particularly within the energy sector.”

“The listing of Transcorp Power exemplifies our belief that NGX serves as a viable platform for the privatization of energy companies, driving efficiency, innovation, and sectoral growth,” he said.

Yesterday, Transcorp Power gained 10.00 per cent to close at N264 per share.

At an event to commemorate the listing, the chief executive of Transcorp Power, Mr Peter Ikenga, said that the company had witnessed the transformation in its ownership, through the takeover of a government-owned asset into a leading private sector-led organization.

According to him, the energy firm presents a unique opportunity in Nigeria’s power generation sub-sector, which is pivotal to the country’s economic growth, explaining that the organisation has 18 gas turbines of different capacities.

“Through effective maintenance and upgrading programmes, Transcorp Power has continued to ensure optimal performance of its turbines, irrespective of the section of the Plant in which they are located.

“Whilst installed capacity has remained the same in the past few years, Transcorp Power has been able to steadily improve on its capacity utilization rate. In 2023, the Company’s utilization rate stood at 78 per cent,” he stated.

The chairman of NGX Group Plc, Mr Umaru Kwairanga, commended the listing of the company, saying the listing was a testament to the resilience, innovation, and excellence within Nigeria’s power sector.

He added that it also underscores NGX’s pivotal role in driving economic growth and development in our nation, saying “we as an Exchange are determined to ensure that all sectors of Nigeria’s economy are fully represented on NGX and that the transparency, sustainability, ethical values, and private sector dynamism that drive the Exchange drives the economy.”

Mr Kwairanga further said “with a market capitalization exceeding N1 trillion, Transcorp Power’s entry into the public market represents a significant milestone, highlighting the increasing confidence and maturity of our capital market.

“It is a clear signal of the transformative journey our energy sector has embarked upon, thanks to the Electric Power Sector Reform Act and subsequent market liberalization.”

Also, the Chief Finance Officer of Transcorp Power, Mr Evans Okpogoro, added that the company’s revenue has grown impressively over the past five years, driven by a surge in energy delivery and capacity charge, coupled with the lucrative expansion into international markets.

Mr Okpogoro explained that the firm has sustained and grown its EBITDA margins, thereby strengthening its pedigree as one of the leading power generation companies in Nigeria.

Aduragbemi Omiyale

Aduragbemi Omiyale is a journalist with Business Post Nigeria, who has passion for news writing. In her leisure time, she loves to read.

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