Isaac Samuel
The Federal Government has significantly reduced liabilities in the power sector following the Nigerian Electricity Liability Management Company’s (NELMCO) clearance of over N2.16 trillion out of the debts inherited from the defunct Power Holding Company of Nigeria (PHCN).
This is as Vice President Senator Kashim Shettima described the milestone as a demonstration of the administration’s commitment to institutional strengthening and sectoral stability.
He said NELMCO’s efforts in clearing legacy debts provide the financial foundation needed for investor confidence and efficient operations, adding that a stable electricity supply is central to Nigeria’s economic growth.
Speaking at the inauguration of NELMCO’s new headquarters in Abuja on Thursday, Managing Director, Mojoyinoluwa Dekalu-Thomas described the achievement as the culmination of over a decade of “silent, relentless and transformative work” in repositioning the sector’s financial architecture.
She said NELMCO inherited over N2.3 trillion in legacy liabilities and, through extensive verification, reconciliation, and negotiation, has successfully settled the bulk of these debts.
The settlements included N100 billion in direct payments to creditors, N700 billion in negotiated savings, the transfer of N1.3 trillion to other Federal Government agencies, and the write-off of nearly N1 billion.
“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,” Dekalu-Thomas said.
She added that clearing legacy debts insulated successor generation and distribution companies from financial burdens, allowing them to attract investment and focus on operational efficiency.
Beyond debt management, NELMCO has generated over N30 billion for the Federal Government through the transparent sale and lease of non-core assets, converting idle resources into economic value.
The MD explained that NELMCO is evolving from a liability manager to a strategic asset custodian, especially in light of the Electricity Act 2023, which has decentralised the sector and empowered states to operate their own electricity markets.
She said the new headquarters will serve as the hub for advanced asset management and the National Power Assets Register, supporting sector liquidity and financial stability.
Meanwhile, Minister of Power, Chief Adebayo Adelabu, said the reforms under the Tinubu administration have reduced outstanding liabilities to about ₦146.76 billion, while improving liquidity and investor confidence in the sector.
He commended NELMCO for delivering over ₦700 billion in savings to the Federal Government and cutting ground rent claims from N644 billion to N41.8 billion.
Adelabu also highlighted that the reforms have activated 16 state electricity markets, expanded competition, and attracted over $2 billion in fresh investments.
He said generation capacity rose from 13 gigawatts to 14 gigawatts, with a peak output of 5,801.44 megawatts, while the Presidential Metering Initiative backed by N700 billion from the Federation Account and an additional $500 million World Bank facility is addressing the longstanding metering gap.
Closing the event, Vice President Shettima commended NELMCO management and staff for their dedication, describing the new headquarters as a symbol of the administration’s commitment to institutional strengthening and sectoral stability.
He urged all stakeholders to sustain the momentum, ensure reforms translate into tangible improvements in electricity supply, and continue supporting industrial growth and economic transformation.
