The Managing Director of the Nigerian Electricity Liability Management Company (NELMCO), Mrs Mojoyinoluwa Dekalu-Thomas, has announced that the company has successfully cleared a significant portion of its inherited debt. The debt, which stood at over N2.3 trillion, has been reduced to N2.16 trillion through extensive verification, reconciliation, and negotiation processes. Dekalu-Thomas made this disclosure at the inauguration of NELMCO's headquarters in Abuja.
The settlements included direct payments of over N100 billion to creditors, negotiated savings of N700 billion, and the transfer of N1.3 trillion to other Federal Government agencies. Additionally, nearly N1 billion was written off. Dekalu-Thomas noted that the Electricity Act of 2023 has fundamentally rewritten the rules of the industry, paving the way for a new era of decentralization and state regulation.
The Chairman of the House Committee on Power, Hon. Victor Nwokolo, has called for increased and prompt funding of the power sector to catalyze economic growth. He emphasized that the power sector is a critical driver of the economy and that prompt funding is essential for its development.
The recent debt clearance by NELMCO is a welcome development, but it highlights the urgent need for increased funding of the power sector. Chairman Victor Nwokolo's call for prompt funding is well-timed, given the sector's critical role in driving the economy. The Federal Government must take concrete steps to release funds to the Ministry of Power and its agencies. With the power sector directly impacting the lives of Nigerians, it is imperative that the government prioritizes its development. The Electricity Act of 2023 has created a new landscape for the industry, and NELMCO must be adequately funded to play its strategic role in managing legacy liabilities and facilitating investments.
