FG Approves NELMCO Board, Finance Minister, Ahmed As Chairman

By InsideBusiness On Jul 5, 2022

The Minister of Finance, Zainab Ahmed will serve as Chairman of the new board of the Nigerian Electricity Liability Management Company (NELMCO) approved by the National Council on Privatisation, (NCP).

The NCP has also approved the proposed governance framework for sustainable management which transferred the payment of post-privatisation liabilities of the power sector to (the NELMCO) Board.

With Ahmed as Chairman, other members are; the Minister of Power; Director-General, Bureau of Public Enterprises (BPE); Director-General, Debt Management Office (DMO); Managing Director, NELMCO; and all its Executive Directors. It was also resolved that two key members from the private sector be included in the board

At the meeting of the Council Thursday, its third in 2022, at the Presidential Villa, presided over by Vice President Yemi Osinbajo, the Council also approved the fast-tracking of the work plan for the concession of the Zungeru Hydroelectric Power Plant (ZHPP).

Also at the meeting, the Council noted that the key objectives of the Zungeru Hydroelectric Power Plant concession include leveraging private sector access to finance and reducing reliance on government budgetary allocation to fund the China EXIM Bank loan; and leveraging efficiencies and better facility management (maintenance) culture of the private sector for long-term preservation of the asset.

The Council had, in its December 2020 meeting, approved the concession of the ZHPP.

In the same vein, the Council was briefed on the performance assessment report of the nine Electricity Distribution Companies (DISCOs), which has been forwarded to the Nigerian Electricity Regulatory Commission (NERC), the sector regulator, for further review and action.

At the meeting, the Council noted that a thorough performance assessment revealed that most of the set performance targets were not met by the 9 DISCOs.

The meeting had in attendance council members including Federal Ministers, and representatives of Federal Ministries such as the Minister of Water Resources, Engr. Suleiman Adamu; Director-General of the Bureau of Public Enterprises (BPE), Alex Okoh; heads of MDAs and other senior government officials.