The Nigeria Electricity Liability Management Company (NELMCO) said it has settled over N2.16 trillion in inherited power sector liabilities, a development seen as a major step toward stabilising Nigeria’s troubled electricity market.
Managing Director of the company, Mojoyinoluwa Dekalu-Thomas, disclosed this yesterday at the commissioning of the agency’s new headquarters in Abuja, stating that the intervention has significantly reduced the financial burden weighing down the sector.
She said NELMCO inherited liabilities exceeding N2.3 trillion but has so far resolved about N2.16 trillion through a combination of direct payments, negotiated savings, transfers, and write-offs.
According to her, the settlements include over N100 billion paid directly to creditors, N700 billion saved through negotiations, N1.3 trillion transferred to other government agencies, and nearly N1 billion written off.
“NELMCO has turned what once seemed impossible into a blueprint for success,” she said, noting that the debts cut across international oil companies, gas suppliers, equipment vendors, state governments, and former power sector workers.
Dekalu-Thomas said the company is evolving beyond liability management into a strategic asset custodian, especially following the implementation of the Electricity Act 2023.
“With the decentralisation of the power sector, we are moving into an era where states are now empowered to regulate their own markets.
“This shift demands a NELMCO that is not just reactive, but strategically proactive. In this new landscape, NELMCO is the integral bridge between the old monopoly and the new competitive market”, she said.
She explained that with the decentralisation of the sector, NELMCO is positioning itself to provide risk mitigation for investors, support market liquidity, and manage post-privatisation obligations.
Speaking at the event, Vice President Kashim Shettima said the agency’s role in clearing legacy debts is central to fixing Nigeria’s electricity crisis.
He warned that unresolved financial obligations have long undermined investor confidence and sector growth, stressing that Nigeria “cannot afford to gamble with energy security.”
Shettima described NELMCO as a key institution in addressing structural bottlenecks, noting that its mandate to manage unpaid debts, non-performing contracts, and stranded assets places it at the heart of ongoing reforms.
Meanwhile, Chairman of the House Committee on Power, Victor Nwokolo, has called for improved and timely funding of the power sector, warning that inadequate financing continues to stall critical projects.
He stressed that the sector remains a major driver of economic growth, particularly for small-scale industries, and urged the Federal Government to prioritise funding releases.
Similarly, Senate Committee on Power chairman, Enyinnaya Abaribe, represented by his deputy, Sen. Ashiru Yisa said NELMCO’s role in managing liabilities and facilitating investments is crucial to building a competitive electricity market.