NELMCO Commended For Reducing Inherited Power Sector Liabilities To N146.76Bn
By Sunday Etuka
The Minister of Power, Chief Adebayo Adelabu, has applauded the Nigeria Electricity Liability Management Company (NELMCO) for its role in stabilising the sector, by reducing inherited liabilities from ₦2.303 trillion to ₦146.76 billion.
Chief Adelabu who gave the commendation on Thursday in Abuja during the commissioning of the new headquarters of the NELMCO, disclosed that the agency also delivered over ₦700 billion in savings to the Federal Government through rigorous verification and reconciliation processes.
He added that NELMCO has also significantly reduced ground rent claims from ₦644 billion to ₦41.8 billion and achieved a 45 percent reduction in post-privatisation liabilities owed by Ministries, Departments and Agencies (MDAs) to electricity distribution companies, further strengthening liquidity and investor confidence in the Nigeria Electricity Supply Industry (NESI).
The Minister, in a statement by his Special Adviser, Strategic Communications and Media Relations, Bolaji Tunji, declared that the sweeping reforms introduced in the nation’s power sector under the Renewed Hope Agenda of President Bola Ahmed Tinubu, are beginning to yield tangible results across the electricity value chain.
According to him, the reforms, anchored on policy overhaul, market liberalisation and institutional strengthening, are repositioning the sector for sustainability, efficiency and increased private sector participation.
He noted that Central to the reform drive was the Electricity Act 2023, which has enabled the decentralisation of the sector and opened the door for subnational participation.
This, he said, has already led to the activation of 16 state electricity markets, while also stimulating competition and innovation within the industry. He added that the development of a National Integrated Electricity Policy, the first in over two decades, now provides a unified framework for implementing the Act, strengthening coordination between federal and state governments and accelerating access to reliable and affordable electricity.
Adelabu further disclosed that the reforms have attracted over $2 billion in fresh investments into the sector, while ongoing efforts to transition the industry towards full commercialisation have significantly improved its financial outlook. According to him, sector revenue grew by 70 percent in 2024, while government liabilities were reduced by about ₦700 billion, reflecting improved efficiency and cost recovery mechanisms.
The Minister also pointed to improvements in generation capacity, which has increased from 13 gigawatts to 14 gigawatts, alongside record operational milestones, including a peak generation of 5,801.44 megawatts. He said the government is addressing the long-standing metering gap through the Presidential Metering Initiative, backed by ₦700 billion mobilised through the Federal Account Allocation Committee and an additional $500 million World Bank facility, with procurement processes already underway to deliver millions of meters nationwide.
As an outcome of the broader reforms, Adelabu revealed that Nigeria has successfully carried out the synchronisation of its national grid with those of other ECOWAS countries following a four-hour uninterrupted test run. He said the development underscores the growing stability and technical capacity of the nation’s electricity system and signals readiness for expanded regional power exchange.
He described the commissioning of NELMCO’s new headquarters as more than the unveiling of a building, noting that it represents a reinforcement of the institutional and financial backbone required to sustain the reform process.
