Nigerian tycoon Tony Elumelu urges private sector approach to unlock national asset value

Nigerian businessman and influential figure in the nation’s business landscape, Tony Elumelu, took center stage as the keynote speaker at the Ministry of Finance Incorporated (MOFI) hosted Public Wealth Management Seminar in Abuja.

Elumelu, the chairman of the United Bank for Africa (UBA) and a leading entrepreneur, shared profound insights on key pillars crucial for MOFI’s mission to unlock value from Nigeria’s assets and enterprises.

In his address, the leading businessman emphasized the significance of leadership capacity, a culture of excellence, a high-performance environment, corporate governance, risk management, and non-interference management as essential components for MOFI’s strategic drive. He underscored the need for these pillars to be ingrained in MOFI’s approach to maximize the potential of Nigeria’s wealth.

As one of Nigeria’s richest individuals, Elumelu’s influence extends beyond his roles at UBA, where he serves as Chairman, and other entities like Transnational Corporation of Nigeria Plc and Heirs Holdings. His commitment to fostering entrepreneurship is evident through the Tony Elumelu Foundation, which has empowered over 10,000 African entrepreneurs through seed capital, training, and mentorship.

Drawing parallels with successful global models, Elumelu highlighted the case of TEMASEK, Singapore’s wealth management entity established in 1974. He pointed out that efficient management, strategic leadership, and a focus on key sectors propelled TEMASEK’s assets from $300 million at inception to an impressive $300 billion.

Elumelu advocated for a similar approach in Nigeria, emphasizing that active management and engagement with portfolio companies, akin to a Private Equity firm, could unlock significant value. Drawing from his own experiences, he outlined the transformative journey of Heirs Holdings Group, Transcorp Group, and UBA, showcasing successful turnarounds and strategic expansions.

One notable example he cited was the transformation of a defunct Crystal Bank into Standard Trust Bank, now an integral part of UBA. UBA’s expansion across 20 African countries and internationally in the UK, France, the UAE, and the USA further demonstrated the success of a visionary approach.

In the power sector, Elumelu highlighted Transcorp’s acquisition of the Ughelli Power Plant, which increased its generation capacity from 160MW to 701MW within four years, surpassing all post-privatization targets. Transcorp’s diverse investments, including power, oil and gas, and hospitality, showcased the potential of private sector efficiency in driving profitability and prosperity.

Commending MOFI’s leadership for adopting a private sector mindset, Elumelu stressed the need for long-term thinking, excellence, and robust corporate governance. He concluded by expressing Heirs Holdings Group’s readiness to collaborate with MOFI in unlocking the wealth and value embedded in Nigeria’s national assets and enterprises.