The Managing Director/Chief Executive, Nigeria Electricity Liability Management Ltd/Gte (NELMCO), Adebayo Nathaniel Fagbemi has revealed that the Agency has saved about 66 billion naira for the Federal Government.
He said the feat was attained with the help of a model developed under his administration known as the ‘Triangular Verification Model’.
According to a press release signed by Etore E. Thomas, director of press, Fagbemi made the disclosure recently in Abuja, while speaking during the November 2019 meeting of the Power Sector Communication Team (PSCT), hosted by NELMCO.
Fagbemi said “NELMCO has absorbed and is effectively managing the liabilities in the sector”.
He listed sources of funding the liabilities to include sale of non-core assets, rent of Power Holding Company of Nigeria properties, proceeds from receivables, inflow from MDA debt recoveries and sale of PHCN assets.
While appreciating the Power Sector Communication Team (PSCT) for the work they are doing, the MD said, “I know you are doing a great job. I encourage you to do more, because communication is key”, stressing that communication is an essential key to what the government is doing in the sector.
NELMCO was established in 2006 as a company limited by guarantee, to assume and manage the assets and liabilities of the defunct Power Holding Company of Nigeria (PHCN).
This according to the MD, is to ensure that the successor companies are not encumbered by these liabilities at take – off.
Some of the liabilities he stated are, legacy debts, engineering, Power Producers and Power Purchase Agreement liabilities, tax liabilities and contingent liabilities.