The Nigerian Electricity Liability Management Company (NELMCO) says it has saved about N92 billion for the federal government in the process of managing the pre-privatisation liabilities of the defunct Power Holding Company of Nigeria (PHCN).
The Managing Director/CEO of NELMCO, Mr Adebayo Fagbemi, disclosed this on Thursday in Abuja when the Bureau of Public Service Reforms (BPSR), led by its director general, Dasuki Arabi, was in his office in Abuja for the presentation of Self Assessment Tool (SAT) reports and plaque to the management and staff of the company.
BPSR developed SAT at the instance of the federal government to enable agencies understand their strengths and weaknesses and use the outcome for continuous improvement. NELMCO presented itself, the first in the power sector to do so, and SAT was deployed there under close monitoring by BPSR.
Fagbemi said the feat was achieved because of the various methodologies and strategies which they had put in place.
“As a result of that the liabilities rather than increasing has been decreasing. First, we were able to save about N 89 billion, and later, an additional N1.8 billion, and if you put these together, you have N92 billion,” adding that it was made possible by the Triangular Verification Model which they had put in place.
The NELMCO declared unequivocally that the mandate for which NELCO was set up as contained in the Electric Power Sector Reform Act (EPSRA) of 2005 had been achieved.
“The essence of setting up NELMCO was to give comfort to the power sector as it relates to pre-privatisation liabilities and assets and we have been able to achieve that mandate.
“That is why you have not heard about any complaints concerning that. It is because we have been able to manage that aspect on behalf of government,” Fagbemi explained.
According to him, NELMCO is to finally close down in 2022 according to a forecast they had done which had been sent to the federal government for approval as the company was meant to cease existing after managing the inherited liabilities, except the authorities say otherwise.
He said what is left as liabilities in the sector now is about N15 billion, and NELMCO would work to close that gap between now and 2022.
Presenting the reports, the BPSR boss, Dasuki Arabi said the result of the assessment exercise showed that NELMCO performed excellently well in handling its responsibilities, so the bureau deemed it fit to present Gold Level Award to the Fagbemi-led NELMCO management.
On her part, the Permanent Secretary, Ministry of Power, Mrs Dilsarau Esther Walson-Jack who expressed delight that NELMCO was the first agency under the ministry to key into the SAT programme by presenting itself for the assessment and had won the Gold Level Award.
She urged BPSR to extend the exercise to other agencies in the sector.