By Adeleye Kunle
VICE PRESIDENT Yemi Osinbajo believes that the new board of directors for the Nigeria Electricity Liability Management Company, NELMCO, will strengthen ongoing efforts to resolve liabilities relating to tariff shortfalls for distribution companies, among other challenges confronting Nigeria’s power sector, Track News reports.
Osinbajo expressed his confidence over the weekend during a virtual inauguration of NELMCO’s new board of directors.
Since the first board was inaugurated in 2013 and quickly dissolved, the company has been operating without a duly constituted board.
According to a statement issued yesterday by Laolu Akande, Senior Special Assistant to the President on Media and Publicity in the Office of the Vice President, “Today’s (Friday) inauguration marks an important milestone in the bid to resolve 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.”
“This ceremony formally welcomes the invaluable skills and experience of notable and highly respected personalities to the NELMCO Board of Directors.”
The vice president told the members that “as a board, you are expected to make conscious and deliberate efforts to develop appropriate strategies to facilitate the successful conclusion of the defunct PHCN’s outstanding pre-privatisation issues, and ensure an effective implementation of NELMCO’s additional mandate to resolve the tariff shortfall problems of the Electricity Distribution Companies.”
“In light of the challenges ahead, you are expected to draw heavily on our experience over the years in order to continue to lend credibility to the Federal Government of Nigeria’s economic development program in a transparent, sustainable, credible, and acceptable manner.”
“The board must take appropriate steps to protect the interests of various segments of our society, particularly ordinary citizens, in the implementation of NELMCO’s mandate.”
Osinbajo charged members of the board with “diligently carrying out the responsibilities assigned to the board in accordance with the provisions of the company’s Memorandum and Articles of Association (MEMART).”
Some of the provisions of the company’s MEMART include the assumption and administration of the stranded debts of the defunct Power Holding Company of Nigeria (PHCN) Plc in accordance with the provisions of the Electric Power Sector Reform Act 2005.
To manage post-privatisation liabilities in the power sector as directed by the National Council on Privatisation or any authorized Federal Government agency from time to time in accordance with the Power Sector Reform Act 2005.
Responding on behalf of the board’s members, Chairperson and Minister of Finance, Budget, and National Planning, Mrs Zainab Shamsuna Ahmed, assured the vice president of the board’s readiness to resolve tariff shortfalls and related issues in the power sector as quickly as possible.
Other board members include the Minister of Power, Abubakar Aliyu; the Director General of the Bureau for Public Enterprises (BPE), Mr. Alex Okoh; the Director General of the Debt Management Office (DMO), Ms. Patience Oniha; the Managing Director of NELMCO, Mr. Bayo Fagbemi; Mr. Muhammad Aliyu Jumma’a; Mr. Olufunso Olutola Olukoga; Dr. Chinedum
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