Electricity power line
NELMCO
Electricity power line
NELMCO Saves N66bn in the Power Sector
The Managing Director/Chief Executive, Nigeria Electricity
Liability Management Ltd/Gte (NELMCO), Adebayo Nathaniel Fagbemi
has revealed that the Agency has saved about 66 billion naira for
the Federal Government, saying the feat was attained with the help
of a model developed under his administration known as the
‘Triangular Verification Model’.
Fagbemi made the disclosure on Wednesday in Abuja, while
speaking during the November 2019 meeting of the Power Sector
Communication Team (PSCT), hosted by NELMCO.
Fagbemi said “NELMCO has absorbed and is effectively managing
the liabilities in the sector”. He listed sources of funding the
liabilities to include sale of non-core assets, rent of Power
Holding Company of Nigeria properties, proceeds from receivables,
inflow from MDA debt recoveries and sale of PHCN assets.
While appreciating the Power Sector Communication Team (PSCT)
for the work they are doing, the MD said, “I know you are doing a
great job. I encourage you to do more, because communication is
key”, stressing that communication is an essential key to what the
government is doing in the sector.
NELMCO was established in 2006 as a company limited by
guarantee, to assume and manage the assets and liabilities of the
defunct Power Holding Company of Nigeria (PHCN). This according to
the MD, is to ensure that the successor companies are not
encumbered by these liabilities at take – off. Some of the
liabilities he stated are, legacy debts, engineering, Power
Producers and Power Purchase Agreement liabilities, tax liabilities
and contingent liabilities.
Etore E. Thomas
DD (Press)