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By Daniel Adaji
The Association for Public Policy Analysis (APPA-Nigeria) has petitioned the House of Representatives Committee on Public Assets, urging an investigation into the Nigerian Electricity Liability Management Company (NELMCO).
The association cited NELMCO’s continued operations beyond its legal mandate and alleged misuse of public funds, which it claims undermines the public interest.
Speaking with Pointblanknews.com on Wednesday, the National President of APPA, Chief Princewill Okorie—who signed the petition—decried the continued existence of the agency despite clear indications that it has exceeded its legal mandate.
APPA noted that NELMCO has been in operation for nearly two decades, far beyond the five-year lifespan stipulated by the Electric Power Sector Reform (EPSR) Act of 2005.
“The continued existence of NELMCO beyond its legal mandate is unjustifiable,” APPA stated in the petition dated November 13, 2024.
The association further argued that NELMCO’s ongoing operations “waste public resources and obstruct the proper utilization of proceeds from the sale of defunct Power Holding Company of Nigeria (PHCN) assets.”
APPA’s key findings indicate that NELMCO inherited liabilities exceeding N2.3trn, with about N1.3trn settled and N972bn still outstanding. The agency also reportedly paid N39.8bn in ground rent to 35 states, with an outstanding N2bn yet to be paid.
The association also raised concerns about financial transparency.
The association noted that based on the current Managing Director’s report, NELMCO paid N94.9m for board training and engaged vendors such as CEA Professional Services Ltd. and GLB Global Services Ltd.
“Some payments were made without proper documentation,” APPA alleged, calling for an investigation to uncover possible corruption and mismanagement.
The petition further criticized NELMCO’s infrastructure expenditures, revealing that the agency spent N200m on office infrastructure and proposed acquiring a permanent office building valued at N15bn. Meanwhile, annual rent payments increased from N34m to N50m, despite persistent questions about the agency’s relevance.
“There is no legal or financial justification for NELMCO’s prolonged existence beyond the five-year post-privatization period,” the petition added.
The association also questioned the creation of regional offices in states without regulatory bodies or distribution companies, describing it as unnecessary and potentially wasteful.
APPA urged the House Committee to “conduct a full investigative hearing into NELMCO’s activities” and to work with civil society experts to ensure transparency and accountability.
NELMCO was established in 2006 to manage the stranded debts and non-core assets of the former PHCN. However, the repeal of the EPSR Act by the Electricity Act of 2023 has further called into question its legal authority.
The analysts warned that “resources used to maintain NELMCO could be redirected to more pressing areas,” emphasizing the need for a thorough audit of the agency’s operations and finances.
When contacted, NELMCO Managing Director Mojoyinoluwa Dekalu-Thomas stated, “The petition in question has been withdrawn. Our lawyer has also written to the petitioner and taken legal action.”
However, the petitioner informed Pointblanknews.com that while he acknowledged receiving the agency’s letter, he had not withdrawn the petition.
He added that a follow-up letter communicating his stance received no response from NELMCO.
Documents obtained by Pointblanknews.com show that the House Committee on Public Assets has been informed of NELMCO’s demand for a retraction and has also been asked to intervene.
When contacted for comment, neither the clerk nor the chairman of the committee, Ademorin Kuye, responded. However, a source close to the committee disclosed that “NELMCO had been invited for a hearing but has, on several occasions, failed to appear before the House.”