Joseph Bakare
The Nigerian Electricity Liability Management Company (NELMCO), has cleared over N2.16 trillion of the debts inherited from the defunct Power Holding Company of Nigeria (PHCN).
Managing Director of NELMCO, Mojoyinoluwa Dekalu-Thomas, disclosed this during the inauguration of the Agency’s new headquarters in Abuja.
Vice President Kashim Shettima, while commissioning the facility in Abuja, said the President Bola Tinubu administration “remains firmly committed to repositioning the electricity sector into a commercially viable, transparent and investment-ready industry”, stressing that energy security is central to national development.
Commissioning the edifice, Shettima described the milestone as a demonstration of the administration’s commitment to institutional strengthening and sectoral stability.
Dekalu-Thomas said NELMCO inherited over N2.3 trillion in liabilities at inception, noting that the agency had, through rigorous verification, reconciliation and negotiation, successfully resolved the bulk of the obligations.
According to her, the settlements include over N100 billion in direct payments to creditors, N700 billion in negotiated savings, the transfer of about N1.3 trillion to other Federal Government agencies, and nearly N1 billion was written off.
She explained that the clean-up of legacy debts removed a major obstacle to investment in the sector, providing the financial room needed by successor generation and distribution companies to focus on operations and service delivery.
“By insulating the successor companies from these ‘ghosts of the past’, we provided the comfort and breathing room necessary for the DisCos and GenCos to attract investment and focus on their core service delivery.
“For years, these liabilities were a dark cloud over the sector, discouraging investment and stifling growth. Today, we have transformed that challenge into a blueprint for success,” she said.
ACCORDING to Shettima, the government’s reform agenda is anchored on data-driven decision-making, deployment of technology and stronger collaboration with both local and international stakeholders.
He noted that the commissioning of the NELMCO headquarters signals a new phase of efficiency, modernisation and institutional strengthening within the power sector.
“This administration remains resolute in its commitment to reform and strengthen the power sector,” the Vice President said, commending the board, management and staff of NELMCO for their critical but often under-recognised role.
Describing the agency as a cornerstone of the electricity market, Shettima said NELMCO is pivotal to addressing legacy challenges that have continued to undermine confidence in the Nigerian electricity supply industry.
“NELMCO represents our commitment to confronting the burdens of yesterday, so that they do not mortgage the possibilities of tomorrow,” he stated, adding that Nigeria is counting on the agency to help restore trust and stability in the sector.
He emphasised that the broader objective of the Tinubu administration was to create a power sector that attracts investment, supports economic growth and delivers reliable electricity to Nigerians.
He called on private investors and international partners to key into ongoing reforms, assuring that the government is committed to maintaining a transparent and investor-friendly environment.
In his remarks, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said efforts to stabilise the power sector would have a direct impact on Small and Medium-Sized Enterprises (SMEs), as well as overall economic performance.
He highlighted ongoing initiatives, including the establishment of the Grid Asset Management Company (GAMCO), as part of broader efforts to address structural inefficiencies in the sector.
Also speaking, the Minister of Power, Adebayo Adelabu, said the new headquarters reflects the Federal Government’s commitment to strengthening liquidity in the electricity market and enabling NELMCO to efficiently manage legacy debts.
Representing the Chairman of the Senate Committee on Power, Enyinnaya Abaribe, Senator Oyelola Ashiru said the facility would reduce government spending on rent while improving operational efficiency.
He assured that the National Assembly would continue to provide the legislative backing required to support reforms in the sector.