The Chairman of the House Committee on Power, Victor Nwokolo, has called for increased funding of the power sector amid the electricity outage rocking the country.
The lawmaker made the call at the inauguration of the headquarters of the Nigerian Electricity Liability Management Company (NELMCO) in Abuja on Thursday.
He said that the call became necessary following the 2025 budget performance of the Ministry of Power and its agencies presented to the National Assembly.
This is according to a report by the News Agency of Nigeria.
What he is saying
The chairman said that the power sector is a critical driver of the economy and that prompt funding of power projects would catalyse economic activities.
- “Without finance, the power sector cannot do anything; the power sector needs to be given proper attention.
- “The power sector is a sector that, if you have invested three trillion and it is remaining one billion to complete the project, it is still as good as if you had not started.
- “I want to appeal to the Federal Government that urgent steps must be taken for the release of funds to the Ministry of Power and the agencies under it.
- “This is because the sector directly impacts the lives of the people; the power sector 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,” he said.
More insights
Also speaking at the event, the Chairman of the Senate Committee on Power, Enyinaya Abaribe, said the new edifice would not only create a conducive atmosphere for staff members to do their work but also save the government funds spent on rented workplaces.
According to him, NELMCO plays a strategic role in the management of legacy liabilities and the facilitation of investments in the power sector, thereby promoting a competitive electricity market.
The Managing Director of NELMCO, Mojoyinoluwa Dekalu-Thomas, said the company had successfully verified and settled billions in inherited obligations to international oil companies (IOCs), gas suppliers, equipment vendors, state governments, and erstwhile staff members.
- She disclosed that NELMCO inherited in excess of N2.3 trillion in liabilities and had settled over N2.16 trillion of the liabilities through extensive verification, reconciliation, and negotiation processes.
The managing director 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 Government agencies, and the writing off of nearly N1 billion.
- “We shall also focus on the management of post-privatisation liabilities and the provision of risk mitigation for new investors, while NELMCO will provide market liquidity support as well as sustainability leadership,” she said.
What you should know
Power supply has been erratic in recent times, with many Nigerians and business owners lamenting electricity outages.
- The Federal Government has blamed the development on a shortage of gas supply and said it is moving to address the shortage.
- The Minister of Power, Adebayo Adelabu, disclosed this in Abuja, noting that the government had begun implementing targeted interventions to stabilise gas supply to thermal power plants.
Industry data shows that as much as 68% of power plants have been unable to operate optimally due to gas shortages and payment disputes across the value chain, leading to frequent drops in generation levels.
