Reps Push Increased Funding as FG Inaugurates NELMCO HQ, Positions Agency as Pillar of Power Sector Stability By Saheed Badmus

Reps Push Increased Funding as FG Inaugurates NELMCO HQ, Positions Agency as Pillar of Power Sector Stability

By Saheed Badmus

The Vice President, Senator Kashim Shettima, has reaffirmed the determination of President Bola Ahmed Tinubu’s administration to reform and strengthen Nigeria’s power sector, declaring that the Nigerian Electricity Liability Management Company (NELMCO) has become central to restoring credibility, stability and investor confidence in the industry.

Speaking in Abuja at the commissioning of NELMCO’s new headquarters, Shettima emphasised that Nigeria cannot afford to gamble with its energy security, noting that the success of ongoing reforms depends not only on policy direction but on strong institutions capable of addressing long-standing structural and financial challenges.

He described NELMCO as a critical stabilising force in the electricity value chain, stressing that its work in managing legacy liabilities has been foundational to the survival and progress of the sector.

The Vice President said the Tinubu administration remains committed to building a transparent, commercially viable and investment-ready electricity market, adding that institutions like NELMCO demonstrate both the seriousness and the capacity of government to sustain reforms. He noted that while the agency’s work is largely behind the scenes, it is indispensable to the credibility of the sector, describing it as the custodian of financial integrity and a key driver of confidence among investors and stakeholders.

He further stated that Nigeria is counting on NELMCO to restore trust within the Nigerian Electricity Supply Industry, pointing out that confronting legacy debts and inefficiencies is essential to unlocking future growth and ensuring that past burdens do not undermine present reforms or future opportunities.

Also speaking, the Minister of Power, Adebayo Adelabu, said reforms under the Tinubu administration are already yielding measurable results, including over $2 billion in fresh investments, a 70 per cent increase in sector revenue in 2024 and a significant reduction in government liabilities. He noted that generation capacity has risen to 14 gigawatts, with record operational improvements and ongoing efforts to close the metering gap through major financing initiatives.

Adelabu emphasised that NELMCO’s performance in reducing inherited liabilities and strengthening financial discipline has been critical to improving liquidity and boosting investor confidence in the sector. He described the commissioning of the new headquarters as a reinforcement of the institutional backbone required to sustain reforms and deepen market stability.

Contributing, The Chairman, House of Representatives Committee on Power, Victor Nwokolo, called for increased and timely funding of Nigeria’s power sector, warning that without adequate financial backing, ongoing reforms and critical projects risk stalling despite recorded progress.

Nwokolo stressed that funding remains the single most decisive factor in unlocking the sector’s potential and driving economic growth. According to him, the appeal became necessary following the 2025 budget performance review of the Ministry of Power and its agencies presented to the National Assembly.

He argued that the power sector directly underpins Nigeria’s economic productivity, particularly for small and medium-scale enterprises, insisting that incomplete funding of projects renders previous investments ineffective.

“Without finance, the power sector cannot do anything. If you invest trillions and fail to complete the project, it is as good as not starting at all,” he said, urging the Federal Government to take urgent steps to ensure prompt release of funds to the ministry and its agencies.

The lawmaker emphasised that electricity supply remains a major catalyst for economic activity, noting that the broader economy cannot thrive without reliable power, especially for businesses that form the backbone of national productivity.

In her remarks, the Managing Director and Chief Executive Officer of NELMCO, Mrs. Mojoyinoluwa Dekalu-Thomas, underscored the agency’s transformation from a liability management entity into a strategic pillar of sector stability. She disclosed that NELMCO inherited over ₦2.3 trillion in liabilities following the unbundling of the defunct Power Holding Company of Nigeria but has since verified and settled over ₦2.16 trillion through a combination of direct payments, negotiated savings and asset transfers.

She added that the agency has delivered savings of over ₦700 billion to the Federal Government and generated more than ₦30 billion in revenue through the transparent disposal and optimisation of non-core assets, effectively converting previously idle or distressed assets into economic value. According to her, these interventions have insulated generation and distribution companies from legacy financial burdens, enabling them to focus on operations, attract investment and improve service delivery.

Dekalu-Thomas described NELMCO as the “engine room of sector liquidity” and an integral bridge between the old centrally controlled electricity structure and the emerging decentralised, market-driven system enabled by the Electricity Act 2023. She noted that as states assume greater roles in electricity regulation and supply, NELMCO will serve as a clearinghouse for both legacy and emerging liabilities, ensuring a smooth transition by providing the financial clarity required for new entrants and subnational markets to thrive.

She further explained that the agency is evolving into a strategic asset custodian, with plans to deploy advanced data systems, including a National Power Assets Register, to optimise government-linked assets across the power sector. This, she said, will not only enhance efficiency but also provide liquidity support for ongoing and future energy projects, while reducing risk for both local and international investors.