Transnational Corporation of Nigeria (Transcorp) Plc, the owner of Transcorp Hotel, Abuja has injected $120 million to rehabilitate the hospitality facilities, the first of such in the 30 years of its existence.
The huge investment, according to the chairman of the parent company, Transcorp Plc, Tony Elumelu was meant to lay an investment, “foundation for a better tomorrow.”
Transcorp Hotel, formerly Hilton Hotel and later changed to Nicon Noga Hotel before Transcorp bought the government holdings in the hospitality company has been rehabilitated by the new owner.
Speaking at the annual general meeting of the company, Elumelu told shareholders that investing in the rehabilitation of the hotel was a wise decision, noting that “your investment will yield huge dividends.”
He noted that it was the first time the level of rehabilitation was being undertaken in the hotel since its existence about 30 years ago.
“We did this because we are long-term investors. We believe in investing today for better tomorrow.
“This hotel is here to make money for shareholders. In terms of value of the assets, they have significantly improved.
“We are laying investment foundation for a better tomorrow.”
Elumelu assured shareholders that for “Transcorp, the future is extremely bright. This is time for wise investors to secure their future and that of their children.”
The Transcorp chief also spoke on the huge indebtedness of government to the power generating firms, saying the federal government is gradually liquidating its debt to the power sector.
Transcorp had made provision for over N97 billion impairment on its balance sheet for the last financial year. But its chairman said the impairment provision was due to the debt owed by the federal government power companies.
He assured the shareholders that there had been lots of improvement in the repayment process and commended the government particularly the Governor of the Central Bank of Nigeria (CBN) for facilitating the debt repayment obligations to power firms.
“I am sure it should be more now. It’s actually a debt owed by the federal government to power companies.
“But as I said, things are now improving. Let me recognise the efforts of the government especially the CBN governor who had been extremely patriotic and involved in driving the improvements in the repayments in the power sector. We hope that progressively they’ll clear all of these,” Elumelu said.