Virtual Inauguration Of The Board Of The Nigeria Electricity Liability Management Company LTD/GTE (NELMCO)

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SPEECH BY HIS EXCELLENCY, PROF. YEMI OSINBAJO, GCON, SAN, VICE PRESIDENT, FEDERAL REPUBLIC OF NIGERIA ON THE OCCASION OF THE VIRTUAL INAUGURATION OF THE BOARD OF THE NIGERIA ELECTRICITY LIABILITY MANAGEMENT COMPANY LTD/GTE (NELMCO) ON THE 19TH OF AUGUST 2022

PROTOCOLS

The National Council on Privatization (NCP) at its 3^RD meeting of the 30^th June, 2022 approved the Constitution of the Board of the Nigeria Electricity Liability Management Company Ltd/Gte (NELMCO).

NELMCO is a company limited by guarantee incorporated on 25^th August, 2006 by the Federal Government of Nigeria through the Bureau of Public Enterprises (BPE) to assume and administer the debts and non-core assets of the defunct Power Holding Company of Nigeria (PHCN) Plc as well as the pre-privatization liabilities of the PHCN, in line with the provisions of the Electric Power Sector Reform Act, 2005.

The first Board of NELMCO was inaugurated by Council on the 31^st October, 2013 to comprehensively address the PHCN liabilities that were being transferred to the Company. The Board was however dissolved, and the Company has been running without a duly constituted Board since then.

Today’s inauguration marks an important milestone in the bid to resolve the liabilities relating to tariff shortfalls in the Power Sector (specifically for Distribution Companies), and to provide a veritable mechanism for managing the very dynamic nature of the liquidity challenges of the power sector in Nigeria.

This ceremony formally brings on board the invaluable skills and experience of highly respected personalities as members of the Board of NELMCO.  These include the Hon. Minister of Finance, Budget and National Planning, Dr. (Mrs) Zainab Shamsuna Ahmed (Chairperson), Hon. Minister of Power, Engr. Abubakar Aliyu (Member), Director General of BPE, Mr Alex Okoh (Member),  Director General of DMO, Ms Patience Oniha (Member), Managing Director of NELMCO, Mr Bayo Fagbemi (Member), Mr Muhammad Aliyu Jumma’a (Member), Mr Olufunso Olutola Olukoga, (Member),  Dr. Chinedum Orisakwe (Member), Mojoyinoluwa Dekalu-Thomas (Member),  and Dr. Nurain Hassan Ibrahim (Member).

Your appointment as members of the Board is also a unique opportunity to contribute to the socio-economic development of our country.

Some of the cardinal objectives of the economic agenda of this Administration are to ensure accelerated growth of the economy, provide infrastructure, create jobs, and provide a suitable environment for productive activities to flourish and tap our enormous natural wealth for the benefit of our people.

You are required to diligently carry out the responsibilities assigned to the Board in accordance with the provisions of the Memorandum and Articles of Association (MEMART) of the Company, which amongst others include the following:

• To assume and administer the stranded debts of the defunct Power Holding Company of Nigeria (PHCN) Plc pursuant to the provisions of the Electric Power Sector Reform Act 2005.

• To take, assume and manage the Tariff Shortfall liabilities in the Nigerian Electricity Supply Industry arising from challenges in the management of electricity tariffs payable by consumers.

• To manage post-privatization liabilities in the power sector as may be directed by the National Council on Privatization, or any authorized agency of the Federal Government from time to time, in line with the Power Sector Reform Act 2005.

• To hold the non-core assets of the defunct PHCN, sell or dispose of or deal in any manner for the purpose of financing the payment of debts or other related matters.

• Other functions that may be performed by the Board as enshrined in the MEMART and relevant legislation.

As a Board, you are expected to make conscious and deliberate efforts to develop the appropriate strategies to facilitate the successful conclusion of the outstanding pre-privatization issues of the defunct PHCN as well as ensure effective implementation of NELMCO’s additional mandate to resolve the tariff shortfall problems of the Electricity Distribution Companies in the Power Sector.

In view of the challenges ahead, you are expected to draw extensively on your very many years of experience over the years, to continue to give credence to the Federal Government of Nigeria’s economic development programme in a transparent, sustainable, credible, and acceptable manner.

The Board is required to take appropriate steps also to ensure that the interests of the various segments of our society, particularly the ordinary citizens, are protected in the implementation of NELMCO’s mandate.

Finally, I congratulate you on your appointment and I urge you to see your appointment as a call to service at this critical period in our nation’s history. I have implicit confidence in your knowledge, experience, ability, patriotism, and commitment to deliver on this mandate.

It is now my pleasure to formally inaugurate the Board of the Nigeria Electricity Liability Management Company Ltd/Gte and I wish the members every success in this important assignment.

Thank you and God bless the Federal Republic of Nigeria.