According to Vice President Yemi Osinbajo, SAN, the inauguration of a board for the Nigeria Electricity Liability Management Company (NELMCO) will help boost ongoing efforts to resolve liabilities related to tariff shortfalls for distribution companies, among other challenges plaguing Nigeria’s power sector.
Prof. Osinbajo provided the assurance in his virtual remarks at the Friday inauguration of the new NELMCO board.
Since the first board was launched in 2013 and disbanded shortly thereafter, the corporation has not had a properly constituted board.
According to the Vice President, “today’s inauguration marks an important milestone in the bid to resolve the liabilities relating to tariff shortfalls in the power sector (specifically for Distribution Companies), and to provide a veritable mechanism for managing the very dynamic nature of the liquidity challenges of the power sector in Nigeria.”
Continuing, Prof. Osinbajo said, “this ceremony formally brings on board the invaluable skills and experience of notable and highly respected personalities as members of the Board of NELMCO.”
On the expectations for the new board, the Vice President told the members that, “as a board, you are expected to make conscious and deliberate efforts to develop appropriate strategies to facilitate the successful conclusion of the outstanding pre-privatisation issues of the defunct PHCN, and ensure an effective implementation of NELMCO’s additional mandate to resolve the tariff shortfall problems of the Electricity Distribution Companies.”
“In view of the challenges ahead, you are expected to draw extensively on our experience over the years, to continue to give credence to the Federal Government of Nigeria’s economic development programme in a transparent, sustainable, credible and acceptable manner.
“The Board is required to take appropriate steps to also ensure that the interests of the various segments of our society, particularly the ordinary citizens, are protected in the implementation of NELMCO’s mandate,” the VP added.
On the board’s mandate, Prof. Osinbajo charged members “to diligently carry out the responsibilities assigned to the board in accordance with the provisions of the Memorandum and Articles of Association (MEMART) of the Company.”
Some of the provisions of the MEMART of the Company include:
- To assume and administer the stranded debts of the defunct Power Holding Company of Nigeria (PHCN) Plc pursuant to the provisions of Electric Power Sector Reform Act 2005.
- To manage post-privatisation liabilities in the power sector as may be directed by the National Council on Privatisation, or any authorized agency of the Federal Government from time to time in line with the power sector reform act 2005.
The Board Chairperson and Minister of Finance, Budget, and National Planning, Mrs. (Dr.) Zainab Shamsuna Ahmed, responded on behalf of the board members by assuring the Vice President of the board’s readiness to ensure prompt settlement of tariff deficits and related concerns in the power sector.
Other board members include the following:
- Minister of Power, Engr. Abubakar Aliyu
- Director General of Bureau for Public Enterprises (BPE), Mr. Alex Okoh
- Director General of Debt Management Office (DMO), Ms. Patience Oniha
- Managing Director of NELMCO, Mr. Bayo Fagbemi
- Mr. Muhammad Aliyu Jumma’a
- Mr. Olufunso Olutola Olukoga
- Dr. Chinedum Orisakwe.
- Mojoyinoluwa Dekalu-Thomas and
- Dr. Nurain Hassan Ibrahim.
Mr. Alex Okoh, director general of the BPE, stated that the takeover of four electricity distribution companies (DISCOs), namely the Kaduna, Kano, Ibadan, and Port Harcourt DISCOs, was effectively completed.
Mr. Okoh announced this in a presentation he made during a virtual meeting of the National Council on Privatisation (NCP) conducted on Tuesday of last week. He also stated that the challenge in the takeover of the Benin DISCO is being solved.
The NCP is presided over by the Vice President, who was represented at the meeting by the Minister of Finance, Budget, and National Planning, Zainab Shamsuna Ahmed, the Vice Chair of Council.
In his report to the Council, the BPE DG detailed the concession of the Zungeru Hydroelectric Power Plant and invited NCP to take note of the Bureau’s efforts to expedite the process.
Mr. Okoh then presented for approval a proposal to revise the BPE Procedures Manual, particularly in the areas of legal framework, reform activities, pre-transaction activities, project advising and delivery team, receipt of technical and financial transaction strategies, and opening and review of technical proposals, among others.