Osinbajo inaugurates NELMCO board to ‘resolve tariff shortfalls’ in power sector

Vice-President Yemi Osinbajo has inaugurated the new governing board of the Nigeria Electricity Liability Management Company (NELMCO).

This was disclosed in a statement issued by Laolu Akande, his spokesman, on Sunday.

The company has been running without a duly constituted board since the first one was inaugurated in 2013 and dissolved shortly after.

In his remarks at the inauguration, Osinbajo said the new board would enhance ongoing efforts to resolve liabilities relating to tariff shortfalls for electricity distribution companies (DisCos), among other challenges plaguing Nigeria’s power sector.

“Today’s inauguration marks an important milestone in the bid to resolve the liabilities relating to tariff shortfalls in the power sector (specifically for distribution companies), and to provide a veritable mechanism for managing the very dynamic nature of the liquidity challenges of the power sector in Nigeria,” Osinbajo was quoted as saying.

“This ceremony formally brings on board the invaluable skills and experience of notable and highly respected personalities as members of the board of NELMCO.”

On the expectations for the new board, the vice-president told the members to make conscious and deliberate efforts to develop appropriate strategies to facilitate the successful conclusion of the outstanding pre-privatisation issues of the defunct PHCN, and ensure an effective implementation of NELMCO’s additional mandate to resolve the tariff shortfall problems of DisCos.