Transcorp Hotels Fulfils Post-Privatisation Obligations, Gets Certificate From Osinbajo

The board of Transcorp Hotels Plc, on Monday, received a Certificate of Discharge from the National Council on Privatisation (NCP), after fulfilling all conditions attached to the sale of the hotel.
The certificate presented at the Presidential Villa by Vice President Yemi Osinbajo who chairs the Council, to Tony Elumelu, Chairman of the Transnational Corporation of Nigeria Plc (Transcorp), the core investor in the hotel, according to a statement, means that the company will no longer be subject to any post-privatization monitoring.
Speaking at the event, Alex Okoh, the Director-General, Bureau of Public Enterprises (BPE), said Transcorp excelled at achieving the Key Performance Indicators established during the monitoring and evaluation of the asset.
These, he noted, include an increase in customer base by 113%, increase in service excellence captured by an 82% decrease in customer complaints, and an increase in operational efficiency with retained earnings rising to 70% of turnover.
According to him, “the success achieved by the hotel has evidently proven both the diligent process of implementing the privatisation programme on one hand and the commitment and professionalism of the Management Team of the Hotel on the other.
“The approval is sequel to the review and analysis of the outcome of our routine performance evaluation earlier conducted on the hotel, which clearly indicates that the achievements recorded by Transcorp Hotels are in line with all the covenanted obligations embedded in the Share Sale Purchase Agreement (SSPA),” Okoh added.
Recall that in 2005, Transcorp emerged core investor during the privatisation of the hotel asset, and subsequently became Transcorp Hotels Plc in 2014, following a decision to make the iconic asset available to the investing public as shareholders.
The company later extended its reach to Calabar, Cross River State, with the acquisition of the formal Metropolitan Hotel, now operating as Transcorp Hotels Calabar, followed by the further acquisition of strategic properties in Lagos and Port Harcourt, Rivers State where it intends to develop new hotels.
In 2018, Transcorp Hotels completed a USD$100m upgrade of the iconic and multi-award winning Transcorp Hilton Abuja, which was a key factor that led to the final discharge of the company by the BPE from further post-privatisation obligations.
Commenting, while receiving the discharge certificate, Elumelu noted that NCP’s approval rating did not come as a surprise, given the group’s knack for excellence in the area of business turn around and value creation.
Expressing support for public-private partnership as a viable option for catalysing national economic development, Elumelu advised that “for public-private partnerships to work and become a viable approach for the transformation of our country, (however,) privatised entities and their owners must justify government’s confidence in them by visibly improving the acquired assets, creating jobs, and increasing government revenues.
“Such positive outcomes will encourage the government to privatise more national assets and free itself of revenue for critical social and infrastructure sectors such as education, healthcare, roads, transportation, etc,” he stressed, commending the government for its efforts in driving economic development in Nigeria.
Also speaking on the discharge, the Managing Director/Chief Executive of Transcorp Hotels Plc, Owen Omogiafo described the ceremony as “a significant milestone in the history of our company and a further demonstration of our long-term commitment to improving lives and transforming our nation.”
The hotel, the statement further recalled, recently won the prestigious World Travel Awards 2019 in five categories including Africa’s Leading Business Hotel and received the Signum Virtutis (Seal of Excellence) in the Hotels Sector for Nigeria at the 2019 Seven Stars Luxury Hospitality and Lifestyle Awards.

Photo caption: Vice President, Professor Yemi Osinbajo presenting Certificate of Performance discharging Transcorp Plc of post privatisation performance obligations in respect of Transcorp Hilton Hotel, Abuja to the Chairman, Transcorp Plc (the core investor of Transcorp Hilton Hotel, Abuja), Tony Elumelu, while the Minister of Finance, Budget and National Planning, Hajia Zainab Ahmed (middle) watched, during a meeting of National Council on Privatization chaired by the Vice President at the Presidential Villa, Abuja on Monday, October 14, 2019.