• Saturday, December 09, 2023
businessday logo


NELMCO saves FG N92 bn on PHCN liabilities- MD


The Nigerian Electricity Liabilities Management Company, NELMCO on Thursday said it has saved the federal government the total sum of N92 billion through discount solicitation and renegotiation of the Power Holding Company, PHCN Liabilities.

Discount solicitation is the downward renegotiation of value of PHCN liabilities,which NELMCO explained it did to the tune of 30 percent discount in order to save money for the government.

The Managing director of NELMCO, Adebayo Fagbemi, gave this information in Abuja during the presentation of Self Assessment Tool,(SAT)by the Bureau of Public Service Reforms,which is a policy initiative that enables agencies of government understand their strengths and weakness,while using the outcomes for continuous improvement.

The discount verification strategy, he noted was meant to be a downward renegotiation of the pre privatisation liabilities in the power sector, which would give comfort to the operations of the Distribution and Generation companies post privatisation.

“Our adoption of discount solicitation window helped us a lot.For instance,for every five million,we solicit from Nigerians a discount of 30 percent.Instead of paying 100 percent because of paucity of funds,we pay 70 percent on the liabilities.

“These steps saved N91billion for Nigeria from N914 billion worth of liabilities What we have as outstanding now is about N400 billion left.”

He expressed optimism that the agency will be able to off set outstanding liabilities to the last kobo by 2022.

NELMCO is set up by the federal government to manage all power sector related debts pre privatisation,which is expected to give comfort to the Distribution and Generation companies in performing their roles.

Dasuki Ibrahim Arabi,the director general of BPSR reforms in his remarks said the assessment of NELMCO will give them opportunities for self assessment in addressing possible concerns of weakness.

He noted that the BPSR will guide the agency with resource persons to help them implement key recommendations that would enable them be efficient in their mandate.

Arabi further noted that the reform agency is extending its Assessment to over 100 agencies of the government,while noting that the step is in line with the Open Government Partnership of the federal government,which is in accordance with the global watchdog for anti corruption.

Earlier in his remarks,the Permanent Secretary in the federal Ministry of Power Didi Walson-Jack said NELMCO could be called up to take up further assignment in the ministry on the back of the commitment shown in management of pre privatisation liability concerns.