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NELMCO saves FG N91bn from PHCN liabilities – MD

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The Nigeria Electricity Liability Management Limited (NELMCO) has saved N91 billion for the Federal Government out of the N914 billion debt owed by the defunct Power Holding Company of Nigeria (PHCN).


Mr Adebayo Fagbemi, Managing Director of NELMCO made this known at the Presentation of the Bureau of Public Service Reforms (BPSR) Self – Assessment Tool (SAT) and Plague to the company  in Abuja on Thursday.

Fagbemi said that the company developed a model “ Triangular Verification Model (TVM) to enable them conduct due diligence on the inherited debt.

“Arising from that model, we were able to save N89 billion for the Federal Government.

“Also through the Distance Soliciting Window, we saved another 1.8 billion and when you add that up, we are talking about almost N91 billion.

“As you are aware,  we inherited a distanded debt of the entire defunct PHCN which amounted to almost N 914 billion and that model was in place for us to conduct due diligence on the inherited debt,’’he said.

Fagbemi said that through the distance soliciting window,  the company was able to solicit for 30 per cent discount for every payment over N5 million and above instead of paying 100 per cent of the money.

According to him, all that put together, the company was able to save almost N91 billion.

“Rather than the liability shooting up, rather than disturbing government on the aspect of funding, that model we developed further reduced the liability.

“ I want to use the opportunity to thank Nigerians that have helped us in accomplishing our mandate, ‘’he said.

Speaking on the award, the MD said that he was happy, adding that it would spur the management and staff of NELCOM to work harder.

On her part, the Permanent Secretary, Ministry of Power, Mrs Didi Walson -Jack said although NELMCO boss said the company’s forecast was to shutdown by 2022, the ministry would want it to operate beyond then.

She commended the NELMCO management for the strategy and performance that earned it a gold level award from the BPSR.

According to her, the award shows that the power sector  on its part is improving and achieving its goals

“Once the ministry and agencies are fully performing their mandate, then we know we are on the right path and the award is an encouragement to us in the ministry and agencies especially NELMCO.

“This is to ensure that we actually pursue our mandate and achieve aspiration of the ordinary Nigerian for sustainable and affordable power supply, ‘she said.

Earlier, the Director -General of BPSR, Mr Dausuki Arabi said that as part of the efforts of the Bureau to initiate, coordinate , monitor and ensure full implementation of federal government’s reforms policies and programmes, SAT was developed.

Arabi said that SAT was to enable agencies of government understand their strengths and weaknesses and use the outcome for continuous improvement.

He said that the award was given to NELMCO for meeting most of its organisational goals.

Arabi explained that following the validated assessment of NELMCO by BPSR, NELMCO performance was rated as consistently meeting expectations in all essential areas of responsibilities, at times exceeding expectations.

He said the quality of work done by NELMCO is generally good as the  most critical organisational goals were met.

Edited By: Chioma Ugboma/Sadiya Hamza (NAN)

 

https://nnn.ng/nelmco-saves-fg-n91bn-from-phcn-liabilities-md/

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