Sometime in 2013, Chief Emma Eziokwu of Brollo Pipes Limited reached out to us through our in-law, proposing that the then Governor of Anambra State, Mr Peter Obi, planned to establish the Ozubulu Industrial Estate as a new hub for manufacturing and foreign investment in Anambra State.
The centrepiece of this plan was the construction of an N8.5 billion Distell Beverages Plant, intended to be a direct foreign investment (DFI) partnership between the Anambra State Government and Distell, a major South African beverage firm.
Part of the governor’s expanded plan was to assemble local businessmen as local investors to partner with the state and foreign investors to replicate the success recorded with the existing Intafact/SABMiller Brewery commissioned at Onitsha in 2012.
Each individual or entity was expected to contribute N1 billion in equity to the Distell partnership.
We jumped at this proposal, knowing of the success of a similar congregation of local investors, led by President Olusegun Obasanjo, who was inspired by South Korean chaebols. The entrepreneurs he assembled founded the Transitional Corporation of Nigeria (Transcorp).
Transcorp was established in 2004 as a diversified investment holding company by a consortium of prominent Nigerian business leaders, including Tony Elumelu, Femi Otedola, Theophilus Danjuma, Tony Ezenna and Fola Adeola. It was incorporated as a public limited liability company to acquire and manage strategic assets in Nigeria’s key sectors, such as power, oil and gas, and hospitality.
In 2006, Transcorp was listed on the Nigerian Stock Exchange, raising significant capital through an initial public offering. That same year, it acquired Ughelli Power Plc (now Transcorp Power Limited), marking its entry into the power generation sector amid Nigeria’s privatisation efforts. The company expanded further in 2011 by securing a 45% stake in the OPL 218 offshore oil block.
By 2014, Transcorp entered the hospitality industry with the acquisition of the Transcorp Hilton Abuja, a landmark hotel. In 2017, it diversified into agriculture by acquiring a majority stake in Dangote Farms Limited.
That inspirational capitalism by President Olusegun Obasanjo gave birth to a company that is today valued at around ₦45.00 per share, with a substantial market capitalisation of approximately ₦462 billion, making it an important player on the Nigerian Stock Exchange.
What is evident from the foregoing is that the government is the most significant enabler of domestic capital capacity through legislation, foresight, and intentional handover of moribund national assets to the private sector.
The South East and other regions of Nigeria are littered with defunct, asset-devouring industries. The state and regional governments may seize the opportunity presented by the formation of the South East Development Commission to harness the potential of local investors to rescue these industries and kick-start a new round of industrial revolution.
The Nigerian political environment is scaring foreign investors in some parts of the country. Local investors are the low-hanging fruit the government should begin harnessing for national economic recovery and development.
To be continued…