Total inherited liabilities by the Nigeria Electricity Liability Management Company (NELMCO), which was established to assume and manage the non-core assets, all liabilities and other obligations that would not be taken over by the successor companies from the privatisation of the Nigeria electricity industry stood at N527.261 billion as February 2017, The Guardian reports.
The liabilities cover about 23,154 invoices with about 9,694 verified and settled, leaving outstanding liabilities of 13,460 invoices for verification. NELMCO, which made the disclosure in its liability management report, listed the liabilities as: engineering N12.363 billion; successor companies N10.591 billion; legacy debts and tax liabilities N77.714 billion; bank loans N154.648 billion; Power Producers and Power Purchase Agreements (IPPs PPA) liabilities N322.198; and contingent liabilities N103.135 billion.
The latest liability figure is about 31% less than the N760.774 billion originally inherited by NELMCO at the outset of privatisation in 2014. The agency said thereafter, it had been able to offset some of its liabilities. These include the Central Bank of Nigeria (CBN’s) Nigerian Electricity Market Stabilisation Facility (NEMSF) legacy gas debts of N14.291 billion; discount from creditors, N1.259 billion; savings from reconciled/negotiated amount, N32.537 billion; savings from verification exercise, N24.320 billion; creditors paid, N26.385 billion, and contingent liabilities N103.135 billion.