Nigeria’s Minister of Power, Mr. Adebayo Adelabu, has said that the reforms introduced in Nigerian power sector under President Bola Tinubu’s Renewed Hope Agenda are beginning to yield measurable results, with improvements recorded across the electricity value chain.
Commissioning the new headquarters of the Nigeria Electricity Liability Management Company (NELMCO) in Abuja on Thursday, the minister described the development as a critical milestone in strengthening the sector’s financial and institutional framework.
According to the government, these improvements have attracted $2bn in investment, while liabilities have been reduced to N146bn.
Adelabu described the development as a critical milestone in strengthening the sector’s financial and institutional framework.
He explained that the reforms, anchored on policy overhaul, market liberalisation, and institutional strengthening, are repositioning the power sector for sustainability and increased private sector participation.
Adelabu noted that the unveiling of the NELMCO’s headquarters goes beyond infrastructure, stressing that it symbolises renewed efforts to stabilise the sector.
“The commissioning of NELMCO’s new headquarters is more than the unveiling of a building; it represents a reinforcement of the institutional and financial backbone required to sustain the reform process,” he said.
The minister commended NELMCO for reducing inherited liabilities from N2.303tn to N146.76bn, adding that the agency has also delivered over N700bn in savings to the Nigerian Government through verification and reconciliation processes.
He disclosed that the company was able to reduce ground rent claims from N644bn to N41.8bn, while also achieving a 45 per cent reduction in post-privatisation debts owed by Ministries, Departments, and Agencies to electricity distribution companies.
“The agency has played its role in stabilising the sector, disclosing that it has reduced inherited liabilities from N2.303tn to N146.76bn and delivered over N700bn in savings to the Federal Government through rigorous verification and reconciliation processes,” he added.
According to him, these efforts have improved liquidity in the sector and boosted investor confidence. Adelabu linked the progress to the implementation of the Electricity Act 2023, which he said, had decentralised the electricity market and created room for subnational participation.
GIK/APA