The Nigerian Electricity Liability Management Company (NELMCO) successfully resolved more than N2.16 trillion of the debts it inherited from the defunct Power Holding Company of Nigeria (PHCN).The Managing Director of NELMCO, Mojoyinoluwa Dekalu-Thomas, disclosed this figure during the inauguration of the agency’s new headquarters in Abuja on Friday 27, March 2026.
Vice President Kashim Shettima commissioned the building and reaffirmed the President Bola Tinubu administration’s strong commitment to turning the electricity sector into a commercially viable, transparent, and investment-ready industry.“Energy security remains central to national development,” Shettima stated. He described the new headquarters as clear proof of the government’s focus on institutional strengthening and sectoral stability.
Dekalu-Thomas explained that NELMCO took over liabilities worth over N2.3 trillion at its inception. Through careful verification, reconciliation, and negotiation, the agency settled the bulk of these obligations.The settlements included direct payments of over N100 billion to creditors, negotiated savings of N700 billion, the transfer of about N1.3 trillion to other federal government agencies, and the write-off of nearly N1 billion.
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She noted that clearing these debts removed a major barrier to investment in the power sector. The action gave successor generation and distribution companies the financial space needed to improve operations and service delivery.“By removing these old liabilities, we gave the DisCos and GenCos the breathing room to attract fresh investment and focus on their core duties,”
He said. Vice President Shettima added that the government’s reform agenda rests on data-driven decisions, technology deployment, and stronger partnerships with local and international stakeholders. He praised NELMCO’s role in addressing past challenges that weakened confidence in the electricity industry. Minister of Finance Wale Edun said the stabilisation efforts would support small and medium-sized enterprises and boost overall economic performance.
He mentioned the planned Grid Asset Management Company (GAMCO) as part of ongoing reforms. Minister of Power Adebayo Adelabu described the new headquarters as a sign of the government’s determination to improve liquidity in the electricity market. A representative of the Senate Committee on Power, Senator Oyelola Ashiru, said the facility would cut government rent costs and raise operational efficiency. He promised continued legislative support for power sector reforms.
