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How government saves N91b liability in power sector

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The Federal Government agency charged with the responsibility of managing liability in the electricity sector, Nigeria Electricity Liability Management Company (NELMCO), yesterday, in Abuja, said about N91b liability has been saved in the power sector.

The saving came out of a total liability of N914bn of the defunct Power Holding Company of Nigeria, NELMCO’s Managing Director, Adebayo Fagbemi, explained at a Self-Assessment exercise before Bureau of Public Service Reforms (BPSR).

He said: “The agency is a special purpose vehicle, and we tried to manage these debts on behalf of the Federal Government. And based on the model we developed, we were able to save a total of N89b. And through the discount solicitation window, we saved another N1.8bn. So, when you add that up, we are talking of about N91b that we saved for the Federal Government.”

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While the BPSR said it was out on self-assessment programmes in about 50 ministries, departments and agencies of the Federal Government, Fagbemi noted that the N91b was saved through the deployment of Triangular Verification Model to verify the inherited stranded debts of the defunct PHCN.

Fagbemi, who linked the stride to due diligence on the inherited debts, said review of values, negotiations and solicitation for discounts, among others, enabled the agency to manage government’s liabilities in the power sector.

Director-General of BSPR, Ibrahim Arabi, disclosed that power companies are facing a lot of issues, and that the liability company has been guided on the issues.

He said: “The circular from the Office of the Secretary to the Government of the Federation says every government agency should be assessed. If not for COVID-19, we would have covered about 100 agencies by the end of June 2020.

“But now, as government offices are opening up, we are restarting the programme. So, before the end of the year, we hope to cover about 50 agencies. We have covered 15 agencies so far.”

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Adebayo FagbemiNELMCO
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