The Federal Government announced that its power sector reforms have successfully attracted $2 billion in fresh investments and significantly reduced sector liabilities to N146.76 billion. Minister of Power, Adebayo Adelabu, shared these developments during the commissioning of the new headquarters of the Nigeria Electricity Liability Management Company (NELMCO) in Abuja.

Adelabu stated that the reforms, which focus on policy overhaul, market liberalisation, and institutional strengthening, are repositioning the sector for sustainability and efficiency, encouraging greater private sector participation.

The Electricity Act 2023 is a cornerstone of these reforms, enabling the decentralisation of the sector and opening avenues for subnational involvement.

According to the Minister's Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji, sector revenue saw a 70 percent growth in 2024. Additionally, government liabilities were reduced by approximately N700 billion, reflecting improved efficiency and cost recovery.

NELMCO has played a crucial role in managing legacy liabilities. The agency has reduced inherited liabilities from an initial N2.303 trillion down to N146.76 billion. This was achieved through rigorous verification and reconciliation processes, resulting in over N700 billion in savings for the Federal Government.

The reforms have also spurred the activation of 16 state electricity markets, fostering competition and innovation within the industry. Generation capacity has seen an increase from 13 gigawatts to 14 gigawatts, with operational milestones including a peak generation of 5,801.44 megawatts.

To address the metering gap, the Presidential Metering Initiative has mobilised N700 billion through the Federal Account Allocation Committee, supplemented by an additional $500 million from a World Bank facility. Procurement for millions of meters nationwide is currently underway.

The commissioning of NELMCO's new headquarters was highlighted as a reinforcement of the institutional and financial framework necessary to sustain the reform process.

Meanwhile, the Chairman of the House Committee on Power, Victor Nwokolo, has called for improved funding for the power sector, emphasizing its critical role in driving economic activities. He noted that incomplete projects, even if close to completion, remain unproductive without full funding.

Nwokolo urged the Federal Government to take urgent steps to release funds to the Ministry of Power and its agencies, stressing that the sector directly impacts citizens' lives and is a major catalyst for the economy, supporting small-scale industries.

The Chairman of the Senate Committee on Power, Enyinaya Abaribe, also spoke at the event, noting that the new NELMCO headquarters would provide a conducive work environment and save government funds previously spent on rented spaces. He reiterated NELMCO's strategic importance in managing liabilities and attracting investments for a competitive electricity market.

Mojoyinoluwa Dekalu-Thomas, Managing Director of NELMCO, reported that the company has settled billions in inherited obligations to international oil companies, gas suppliers, equipment vendors, state governments, and former staff. These settlements included over N100 billion in direct payments, N700 billion in negotiated savings, N1.3 trillion transferred to other government agencies, and nearly N1 billion written off.