The Chairman of the House Committee on Power, Victor Nwokolo (APC-Delta), has called for increased and prompt funding of the power sector to serve as a catalyst for an economic boom in the country.

Mr Nwokolo made the call at the inauguration of the headquarters of Nigerian Electricity Liability Management Company (NELMCO) in Abuja on Thursday.

He said that the call became necessary following the 2025 budget performance of the Ministry of Power and its agencies presented to the National Assembly.

The chairman said that the power sector was a critical driver of the economy, saying that prompt funding of power projects would catalyse economic activities.

“Without finance, the power sector cannot do anything; the power sector needs to be given proper attention. The power sector is a sector that, if you have invested three trillion and there is remaining one billion to complete the project, is still as good as if you had not started.

“I want to appeal to the federal government that urgent steps must be taken for the release of funds to the Ministry of Power and the agencies under it. This is because the sector impacts directly on the lives of the people; the power sector is a major catalyst that drives the economy.

“The Nigerian economy is not driven by government alone but also by small-scale industries, and if there is no power, it is not good enough,” he said.

Also speaking, the Chairman of the Senate Committee on Power, Sen. Enyinaya Abaribe (ADC-Anambra), said that the new edifice would not only create a conducive atmosphere for staff members to do their work but also save the government funds spent on rented workplaces.

Represented by the Deputy Chairman, Ashiru Yisa (APC-Kwara), Mr Abaribe said that the inauguration of the edifice underscored the commitment of President Bola Tinubu’s administration to efficiency.

According to him, NELMCO plays a strategic role in the management of legacy liabilities and facilitation of investments in the power sector, thereby promoting a competitive electricity market.

He said that the Electricity Act of 2023 maintains NELMCO as the successor to the defunct Power Holding Company of Nigeria (PHCN) for the purposes of managing assets, investment and liability to unlock the potential of the sector.

“As this edifice is being inaugurated today, we acknowledge the collaborative efforts of stakeholders, development partners and the federal government for making this development a possibility.

“This new edifice will enhance the ability to deliver on the organisation’s mandate. The Senate Committee on Power and, indeed, the National Assembly remain committed to supporting initiatives such as this that encourage the growth of the power sector.

“We will continue to provide legislative support to ensure NELMCO and other sector agencies have the required framework and infrastructure to deliver on their specific mandates,” he said.

Earlier, the Managing Director of NELMCO, Mojoyinoluwa Dekalu-Thomas, stated that NELMCO had turned what seemed impossible into a blueprint for success under Tinubu’s administration.

Ms Dekalu-Thomas said that the company had successfully verified and settled billions in inherited obligations to international oil companies (IOCs), gas suppliers, equipment vendors, state governments, and former staff members.

She disclosed that NELMCO inherited in excess of N2.3 trillion in liabilities and had settled over N2.16 trillion of them through extensive verification, reconciliation and negotiation processes.

The managing director said that the settlements included over N100 billion in direct payments to creditors, negotiated savings of N700 billion, the transfer of N1.3 trillion to other federal government agencies; and the writing off of nearly N1 billion.

“As we stand at the threshold of a new dawn, we recognise that the Electricity Act 2023 has fundamentally rewritten the rules of our industry. With the decentralisation of the power sector, we are moving into an era where states are now empowered to regulate their own markets.

“This shift demands a NELMCO that is not just reactive but strategically proactive. In this new landscape, NELMCO is the integral bridge between the old monopoly and the new competitive market.

“NELMCO is evolving; we are moving from simply a liability manager to a strategic asset custodian. We shall also focus on management of post-privatisation liabilities and the provision of risk mitigation for new investors, while NELMCO will provide market liquidity support as well as sustainability leadership,” she said. 

(NAN)