Nigerian tycoon Tony Elumelu has urged the adoption of a private sector strategy to unlock the immense value of national assets. Elumelu, a prominent figure in Nigeria’s business landscape, recently shared his insights 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 renowned entrepreneur emphasized the critical importance of leadership capacity, a culture of excellence, a high-performance environment, corporate governance, risk management, and non-interference management for MOFI’s mission. He stressed that these key pillars are essential to fully realize the potential of Nigeria’s wealth.
Drawing on successful global models, Tony Elumelu highlighted the case of TEMASEK, Singapore’s wealth management entity established in 1974. He pointed out that TEMASEK’s assets grew from $300 million to an impressive $300 billion due to efficient management, strategic leadership, and a focus on key sectors.
Elumelu advocated for a similar approach in Nigeria, suggesting that active management and engagement with portfolio companies, akin to a Private Equity firm, could unlock significant value.
Elumelu’s own experience with Heirs Holdings Group, Transcorp Group, and UBA serves as a testament to the effectiveness of this approach. He shared the transformative journey of these entities, including the remarkable turnaround of a defunct Crystal Bank into Standard Trust Bank, now a part of UBA, which has expanded across 20 African countries and internationally.
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. This example underscores the potential of private sector efficiency in driving profitability and prosperity.
Elumelu commended MOFI’s leadership for adopting a private sector mindset and 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.
Tony Elumelu’s proposal for a private sector strategy to increase national wealth is a visionary approach that could transform Nigeria’s economic landscape.