Transcorp Group’s Partnership with Elumelu’s Heirs Energies Boosts Power Generation

In a significant step toward enhancing Nigeria’s energy capacity, Transnational Corporation Plc (Transcorp Group) has announced a strategic partnership with Heirs Energies, a company also chaired by renowned entrepreneur Tony O. Elumelu, to boost electricity generation and supply across the country. The collaboration is expected to strengthen Nigeria’s power infrastructure, improve grid reliability, and accelerate the nation’s transition toward a more sustainable energy future.

The partnership aligns with the Federal Government’s agenda to expand national electricity generation beyond 10,000 megawatts and address chronic challenges of energy shortages that have constrained economic growth for decades. Both companies — key subsidiaries of the Heirs Holdings Group — are combining resources and technical expertise to drive greater efficiency in power generation, transmission, and distribution.

According to a joint statement by the two firms, the partnership will optimise generation capacity across Transcorp’s Afam Power Plc and Transcorp Power Ltd, while integrating Heirs Energies’ upstream gas assets to ensure reliable fuel supply. This synergy, they noted, will not only boost generation capacity but also create a more stable power value chain.

Tony Elumelu, who serves as chairman of both entities, said the collaboration represents the realisation of a long-held vision to create an integrated energy ecosystem that serves Nigeria’s industrial and domestic needs. “Through this partnership, we are consolidating efforts across the power and gas sectors to unlock the full potential of Nigeria’s energy resources,” Elumelu stated. “Reliable energy is the backbone of industrialisation, and we are committed to delivering sustainable solutions that power homes, industries, and businesses.”

The collaboration comes at a time when Nigeria’s power generation hovers between 3,500MW and 4,500MW, far below the estimated national demand of over 20,000MW. The sector continues to grapple with issues such as gas shortages, aging infrastructure, and inadequate investment, leading to frequent grid collapses and inconsistent power supply.

By leveraging Heirs Energies’ extensive gas exploration and production capabilities, the partnership is expected to address one of the most critical bottlenecks — the insufficient supply of natural gas to power plants. Heirs Energies currently operates key upstream assets, including Oil Mining Lease (OML) 17, one of the largest oil and gas fields in Nigeria’s Niger Delta region, capable of producing substantial gas volumes for power generation.

Managing Director/CEO of Transcorp Power Ltd, Peter Ikenga, said the collaboration will immediately impact operational efficiency and generation output. “This partnership will significantly improve the availability and reliability of gas supply to our plants. We are targeting a measurable increase in output to the national grid in the coming months,” he said.

Ikenga added that with the integration of Heirs Energies’ gas assets, Transcorp’s existing generation plants will achieve better load factors, reduced downtime, and improved maintenance cycles. “We are looking beyond short-term results; this is a strategic move that will redefine Nigeria’s energy reliability and industrial productivity,” he emphasized.

The partnership also aligns with Transcorp Group’s diversification strategy, which seeks to drive socio-economic growth through investments in power, hospitality, and energy. In the last fiscal year, Transcorp Power contributed significantly to the group’s revenue, posting record profits and reinforcing its position as one of Nigeria’s leading private sector power producers.

Heirs Energies CEO, Osa Igiehon, reaffirmed that the initiative would also promote environmental sustainability. “We are focusing on cleaner, more efficient gas utilisation to reduce emissions while supporting Nigeria’s net-zero transition goals. This collaboration embodies our shared commitment to sustainable development,” he said.

The companies further disclosed plans to invest in infrastructure upgrades, including gas pipelines, control systems, and transmission interfaces that will enable more consistent power delivery to the national grid. Industry experts say such private-led initiatives could help stabilise the grid and complement the government’s recent policy reforms aimed at liberalising the electricity market.

Energy policy analyst, Dr. Funmilayo Adeyemi, described the move as “a bold and practical model for energy sector integration.” She noted that linking gas supply with power generation under the same investment ecosystem would solve the long-standing issue of misaligned incentives. “For too long, gas producers and power generators have operated in silos, creating inefficiencies. This partnership bridges that gap and ensures both reliability and profitability,” she explained.

Analysts also believe the collaboration will set a precedent for similar alliances between upstream and power sector players, fostering a more holistic approach to Nigeria’s energy development. The Nigerian Electricity Regulatory Commission (NERC) has recently encouraged private partnerships to strengthen capacity and efficiency in the power value chain.

In recent months, Transcorp has made major strides in expanding its energy footprint. The company commissioned several upgrades at the Afam Power Plant, increasing its operational capacity and efficiency. Meanwhile, Heirs Energies has expanded its gas infrastructure, investing heavily in production facilities to meet growing energy demands.

Both companies say their shared vision is to make energy abundance a reality for Nigerians, bridging the gap between production and consumption. Elumelu underscored that the initiative aligns with his philosophy of Africapitalism, which focuses on long-term investments that deliver economic prosperity and social progress across Africa.

“As Africans, we must take charge of our destiny by solving our most pressing problems ourselves. Energy is one of them, and with this partnership, we are proving that indigenous companies can drive transformation at scale,” he said.

The partnership is expected to deliver tangible results in 2026, with targets to increase grid contribution by at least 25 percent within the first phase of implementation. Both Transcorp and Heirs Energies reaffirmed their commitment to transparency, efficiency, and sustainability as they work toward achieving a reliable and self-sufficient Nigerian energy sector.

Industry observers believe this collaboration will not only enhance national generation capacity but also attract more private capital into Nigeria’s energy value chain, paving the way for a new era of integrated, homegrown solutions in power generation.