The Managing Director/Chief Executive Officer of the Nigeria Electricity Liability Management Company (NELMCO) Limited, Dr. Samuel John Agbogun, has put the firm’s outstanding liabilities at over N713 billion.
According to him, the liabilities were debts owed creditors including the Independent Power Producers (IPPs), pensioners of the defunct Power Holding Company of Nigeria (PHCN) and power producers.
He said: “NELMCO has an outstanding liabilities of over N713 billion as huge debts that were owed to creditors including the Independent Power Producers (IPPs), partly foreign loans as well as those owed government agencies, PHCN pensioners and power producers.”
He however said the Federal Government has approved N16.5billion as death and gratuity payments for 3,334 pensioners of the former state-run power firm.
He said: “The Federal Government, in line with ongoing Transformation Agenda has approved N16.5billion as death and gratuity payments for 3,334 pensioners of the defunct PHCN as part of the mandate of NELMCO to take over the management and settlement of PHCN’s Power Purchase Agreement (PPA) debts as may be determined by the National Council On Privatisation from time to time.”
According to him, it is part of the mandate of NELMCO to take over the management and settlement of PHCN’s PPA debts as may be determined by the National Council on Privatisation (NCP).
Agbogun disclosed this while addressing members of the Nigeria Union of Pensioners (NUP), Electricity Sector at the mid-term special Central Working Committee/National Executive Committee meeting at Bishop Kelly Pastoral Centre, in Benin-city, the Edo State capital also said NELMCO has over 4,000 pensioners court cases as liabilities to settle.
He said this would be settled soon because the machinery to handle all the cases has already been put in place.