The Federal Government has moved to enhance the ongoing efforts to resolve the liabilities relating to tariff shortfalls for electricity distribution companies as the Vice President, Yemi Osinbajo, has inaugurated the board of Nigeria Electricity Liability Management Company (NELMCO).
According to a statement issued by the Senior Special Assistant to the President on Media and Publicity (Office of the Vice President), Laolu Akande, on August 21, Osinbajo made the assertion in his remarks delivered virtually at the inauguration of the new 10-member board of NELMCO.
Osinbajo stated that the inauguration also provides a veritable mechanism for managing the very dynamic nature of the liquidity challenges of the power sector in Nigeria.
The statement said that NELMCO has been running without a duly constituted board since the first board was inaugurated in 2013 and dissolved shortly after.
What the Presidential media aide is saying
Akande said that 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.
- “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, Osinbajo told the members, “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 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.”
On the Board’s mandate, Professor 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.”
Memorandum and Articles of Association of NELMCO
Some of the provisions of the MEMART of NELMCO include;
- To assume and administer the stranded debts of the defunct Power Holding Company of Nigeria 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.”
New Board members of NELMCO
In her remarks, the Board Chairperson and Minister of Finance, Budget and National Planning, Dr. Zainab Ahmed, assured Osinbajo of the board’s preparedness to ensure quick resolution of tariff shortfalls and related issues in the power sector in the most efficient manner.
Other members of the board include the Minister of Power, Abubakar Aliyu, Director General of Bureau for Public Enterprises, Mr. Alex Okoh, Director General of Debt Management Office, Ms. Patience Oniha, Managing Director of NELMCO, Mr. Bayo Fagbemi, Mr. Muhammad Jumma’a, Mr. Olufunso Olukoga, Dr. Chinedum Orisakwe, Mojoyinoluwa Dekalu-Thomas and Dr. Nurain Ibrahim.
Please we need to reduce the tariff of customers to 28.05 far kwh in resdertionl.
Thanks for your