The board structure and proposed governance framework for the long-term management and payment of post-privatization liabilities of the power sector transferred to the Nigerian Electricity Liability Management Company (NELMCO) Board have been approved by the National Council on Privatization (NCP).
The Council also approved fast tracking of the work plan for the concession of the Zungeru Hydroelectric Power Plant (ZHPP).
These were some of the highlights of the Council’s meeting yesterday, which was the third in 2022 and was held at the Presidential Villa under the chairmanship of Vice President Yemi Osinbajo, SAN.
The Director General of the Bureau of Public Enterprises (BPE), the Director General of the Debt Management Office (DMO), the Managing Director of NELMCO, and all of its Executive Directors make up the NELMCO board, which will be chaired by the Minister of Finance. It was also decided to have two important private sector representatives on the board.
During the meeting, the Council also noted that the Zungeru Hydroelectric Power Plant concession’s primary goals include leveraging private sector access to finance and reducing reliance on government budgetary allocations to finance the China EXIM Bank loan, as well as leveraging private sector efficiencies and better facility management (maintenance) cultures for the asset’s long-term preservation.
The concession of the ZHPP had been granted by the Council during its meeting in December 2020.
The Nigerian Electricity Regulatory Commission (NERC), the industry regulator, has received the performance evaluation reports of the nine Electricity Distribution Companies (DISCOs), which have been forwarded to it for further examination and action.
The 9 DISCOs failed to reach the majority of the established performance targets, the Council highlighted during the meeting after conducting a detailed performance assessment.
The Federal Ministers, representatives of Federal Ministries, including the Minister of Water Resources, Engr. Suleiman Adamu, Mr. Alex Okoh, Director-General of the Bureau of Public Enterprises (BPE), heads of MDAs, and other top government officials were present at the meeting.