The Association for Public Policy Analysis (APPA-Nigeria) has submitted a formal petition to the House of Representatives Committee on Public Assets, calling for an investigation into the activities of the Nigerian Electricity Liability Management Company (NELMCO).
The association raised concerns over NELMCO’s continued operations beyond its statutory mandate and alleged mismanagement of public funds, which it claims is detrimental to the public interest.
Speaking to Pointblanknews.com on Wednesday, the National President of APPA, Chief Princewill Okorie, who signed the petition, criticised the continued existence of the agency, arguing that it has long exceeded its legal remit.
APPA pointed out that NELMCO has operated for nearly 20 years, well beyond the five-year duration stipulated by the Electric Power Sector Reform (EPSR) Act of 2005.
“The continued existence of NELMCO beyond its legal mandate is indefensible,” the association stated in the petition dated 13 November 2024.
APPA further argued that NELMCO’s ongoing operations have led to wasteful spending and hindered the effective use of proceeds from the sale of the defunct Power Holding Company of Nigeria (PHCN) assets.
According to the association’s findings, NELMCO inherited liabilities of over ₦2.3 trillion, of which approximately ₦1.3 trillion has been settled, while ₦972 billion remains outstanding. The agency is also reported to have paid ₦39.8 billion in ground rent to 35 states, with ₦2 billion still unpaid.
Concerns were also raised regarding the agency’s financial accountability. Citing a recent report by NELMCO’s Managing Director, APPA noted that ₦94.9 million was spent on board training, with contracts awarded to firms such as CEA Professional Services Ltd. and GLB Global Services Ltd.
“Some of these payments appear to have been made without adequate documentation,” APPA alleged, urging the House committee to investigate potential cases of corruption and fiscal mismanagement.
The petition also criticised infrastructure-related spending by the agency, highlighting the ₦200 million reportedly spent on office renovations and a proposed plan to acquire a permanent office valued at ₦15 billion. Meanwhile, the agency’s annual rent reportedly increased from ₦34 million to ₦50 million expenditure the association deems unjustifiable.
“There is no legal or financial rationale for NELMCO’s continued existence beyond the five-year post-privatisation period,” the petition stated.
APPA further questioned the establishment of regional offices in states lacking regulatory bodies or distribution companies, describing the move as unnecessary and a potential source of waste.
The association urged the House Committee to conduct a comprehensive public hearing on NELMCO’s operations and to collaborate with civil society experts to ensure transparency and accountability.
Also Read: Reps Launch Probe into ₦200bn CBN Metering Loan to DISCOs
Established in 2006, NELMCO was tasked with managing the stranded liabilities and non-core assets of the former PHCN. However, the repeal of the EPSR Act under the Electricity Act of 2023 has further undermined the agency’s legal standing.
APPA warned that resources used to sustain NELMCO could be better allocated to critical sectors, calling for a full audit of its finances and operations.
When contacted, NELMCO’s Managing Director, Mojoyinoluwa Dekalu-Thomas, claimed that the petition had been withdrawn and that the agency’s counsel had initiated legal action. However, the petitioner stated that although he had received correspondence from NELMCO, he had not withdrawn the petition.
He added that a follow-up letter clarifying his position was sent to the agency, but he received no response.
Documents seen by Pointblanknews.com indicate that the House Committee on Public Assets has been informed of NELMCO’s retraction request and has been petitioned to intervene.
Attempts to reach the committee clerk and its chairman, Ademorin Kuye, were unsuccessful. However, a source within the committee confirmed that NELMCO had been invited for a hearing but had repeatedly failed to appear before the House.
