Shettima Promises Power Reforms for Nigerians

Vice President Inaugurates New NELMCO Headquarters, Urges Decisive Action on Power Sector Reform

Abuja, Nigeria – Vice President Kashim Shettima has officially commissioned the new head office of the Nigerian Electricity Liability Management Company (NELMCO) in Abuja, issuing a clear directive for the agency to assume a more impactful role in enhancing the nation’s electricity supply. The inauguration underscored the administration’s unwavering commitment to a comprehensive overhaul of the power sector, aiming to deliver more dependable electricity services nationwide.

During the ceremony, Vice President Shettima emphasized the critical link between energy security and national development, warning against any missteps in managing this vital sector. He stated, “It requires that governance, transparency, and accountability remain the guiding principles of this institution. This is why the commissioning of this headquarters must symbolise a new phase of modernisation, efficiency, and forward-thinking leadership.”

The Vice President reaffirmed President Bola Tinubu’s administration’s dedication to reforming and fortifying the power sector. He extended commendation to the board, management, and staff of NELMCO for their diligent efforts, acknowledging their often-unseen but foundational contribution to the sector’s progress. “Yours is a task that often goes unnoticed, yet it is foundational to everything we seek to achieve in this sector. You are, in many ways, the custodians of the sector’s credibility,” Shettima remarked.

NELMCO’s Pivotal Role in Addressing Legacy Challenges

Vice President Shettima highlighted NELMCO’s strategic importance as a key player in tackling persistent issues within the electricity industry. He described the company as a testament to Nigeria’s determination to resolve “the burdens of yesterday so that they do not mortgage the possibilities of tomorrow,” underscoring that “energy security is the ultimate foundation upon which national progress must stand.”

Nigeria, he noted, is counting on NELMCO’s efforts to “restore a measure of confidence within the Nigerian Electricity Supply Industry.” This objective aligns with the broader governmental agenda to reposition the power sector as a commercially viable and attractive destination for investment. “Whatever we do in investing in the capacity to solve problems that are often invisible but always consequential, cannot reasonably be said to be enough unless we provide a lasting solution to these legacy challenges,” he added.

Encouraging Investment and Partnership

The Vice President extended an invitation to private investors and international partners, urging them to seize the burgeoning opportunities within the power sector. “We are committed to creating a transparent, predictable, and investor-friendly environment. Institutions like NELMCO demonstrate that we are not only serious about reform, but capable of sustaining it,” he asserted.

Stakeholder Perspectives on Sector Reform

Several key figures present at the inauguration echoed the sentiment of urgency and commitment to transforming the power sector.

• Wale Edun, Vice Chairman of the NELMCO Board and Minister of Finance and Coordinating Minister of the Economy: Edun emphasized that stabilizing the power sector would yield substantial economic benefits, particularly for small and medium-scale enterprises, which form the backbone of the Nigerian economy.
• Adebayo Adelabu, Minister of Power: Adelabu viewed the new headquarters as a tangible representation of the Federal Government’s resolve to enhance liquidity in the electricity market and empower NELMCO to manage legacy liabilities more effectively. He also highlighted the significance of ongoing reforms, such as decentralisation and liberalisation, which are underpinned by the Electricity Act signed by President Tinubu, enabling states to actively participate in electricity generation and distribution.
• Senator Enyinnaya Abaribe, Chairman of the Senate Committee on Power (represented by Senator Yisa Ashiru): The representative noted that the new facility would lead to reduced government expenditure on rent and signifies a broader commitment to operational efficiency.
• Victor Nwokolo, Chairman of the House of Representatives Committee on Power: Nwokolo stressed the critical need for adequate financial resources to unlock the sector’s full potential. He stated, “Without finance, the power sector cannot do anything; the power sector needs to be given proper attention. If you have invested N3tn and it is remaining N1bn to complete the project, it is still as good as if you had not started. I want to appeal to the Federal Government to take urgent steps for the release of funds to the Ministry of Power and the agencies under it.”

NELMCO’s Evolving Mandate and Achievements

Mrs. Mojoyinoluwa Dekalu-Thomas, the Managing Director and Chief Executive Officer of NELMCO, elaborated on the company’s expanded role. She revealed that NELMCO has evolved beyond its initial mandate of debt settlement and now serves as a crucial clearing house for legacy liabilities in the sector. Impressively, the agency has “generated revenue in excess of N30bn for the Federal Government.”

Established in 2010 as part of a broader power sector reform programme, NELMCO was instrumental in managing and settling debts and contractual obligations inherited from defunct power utilities following the unbundling and privatisation of the former Power Holding Company of Nigeria. These liabilities, encompassing unpaid contractor obligations, pension commitments, and other financial exposures, had historically posed a significant threat to investor confidence and the overall stability of the Nigerian Electricity Supply Industry.

By consolidating these debts, NELMCO effectively streamlines the financial statements of successor companies, enabling generation and distribution firms to operate more sustainably. This function is considered indispensable for improving sector liquidity, attracting investment, and ensuring that operators can concentrate on service delivery rather than being encumbered by historical financial burdens.

Despite these efforts, persistent liquidity challenges, tariff shortfalls, and market inefficiencies have continued to impede the sector’s progress, contributing to the erratic power supply experienced across the country. Consequently, institutions like NELMCO have become central to the Federal Government’s reform strategy, aimed at restoring confidence, bolstering financial discipline, and establishing the foundation for a more reliable electricity market.

The inauguration of NELMCO’s permanent headquarters is viewed as a significant milestone, both symbolically and practically. It signals a reinforced commitment to institutional capacity and sustained sector reform, particularly at a time when Nigeria is actively pursuing the expansion of power generation, enhancement of transmission infrastructure, and decentralisation of power supply under a new legal and regulatory framework.