NELMCO inaugurates new headquarters after settling over N2.16 trillion in legacy liabilities; focus shifts to improving electricity delivery….
Lawmakers are calling for urgent increased funding for Nigeria’s power sector as the country continues to experience erratic electricity supply.
The appeal was made at the inauguration of the headquarters of the Nigerian Electricity Liability Management Company (NELMCO) in Abuja, with House Committee on Power Chairman, Victor Nwokolo, stressing the sector’s critical role in economic growth.
Speaking at the event, Nwokolo linked the call for additional resources to the 2025 budget performance of the Ministry of Power and its agencies. He argued that insufficient funding undermines ongoing projects, regardless of prior investments.
“Without finance, the power sector cannot do anything. If you have invested three trillion and it is remaining one billion to complete a project, it is still as good as if you had not started,” Nwokolo said.
“The sector directly impacts the lives of the people. It is a major catalyst that drives the economy. The Nigerian economy is not driven by government alone but also by small-scale industries, and if there is no power, it is not good enough.”
NELMCO’s role and achievements
The Senate Committee on Power Chairman, Enyinaya Abaribe, highlighted that the new NELMCO headquarters would not only provide a conducive working environment but also save the government funds previously spent on rented facilities.
NELMCO Managing Director Mojoyinoluwa Dekalu-Thomas detailed the company’s achievements in addressing legacy liabilities inherited from previous administrations. The company had inherited over N2.3 trillion in obligations to international oil companies, gas suppliers, equipment vendors, state governments, and former staff.
“Through extensive verification, reconciliation, and negotiation, NELMCO has settled over N2.16 trillion,” she said.
The settlements included over N100 billion in direct payments to creditors, negotiated savings of N700 billion, transfer of N1.3 trillion to other federal agencies, and the writing off of nearly N1 billion in obligations.
She added that the company would now focus on post-privatisation liabilities, risk mitigation for new investors, market liquidity support, and leadership in sustainability to strengthen the power sector.
Addressing gas shortages and operational challenges
Recent power outages have been linked to persistent gas shortages and payment disputes across the value chain. The Minister of Power, Adebayo Adelabu, confirmed that targeted interventions are underway to stabilise gas supply to thermal power plants, noting that as much as 68% of power plants have been operating below capacity.
Lawmakers and sector stakeholders agree that increased funding, coupled with stronger operational frameworks and investor support, is essential to improve electricity delivery, boost economic activity, and reduce the daily disruptions that affect both businesses and households across Nigeria.
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