Defunct PHCN Liabilities: NELMCO Records N91bn Savings For FG

11

 Nigeria Electricity Liability Management Limited (NELMCO) has saved N91 billion on behalf of the federal government from a total of N914 billion liabilities of the defunct Power Holding Company of Nigeria, (PHCN), the Managing Director and Chief Executive Officer, Adebayo Fagbemi has said.

Fagbemi made the announcement on Thursday, during the presentation of report of the Bureau of Public Service Reforms (BPSR) Self-Assessment Tool (SAT) deployed in NELMCO, in Abuja, as part of federal government reform policies and programmes, to enable agencies of government understand their strength and weaknesses and use the outcome for continuous improvement.

The NELMCO boss said the savings was achieved through a model called Triangular Verification Model, which the agency developed to effectively manage the liabilities of the defunct Power Holding Company of Nigeria, (PHCN) on behalf of the federal government.

According to him, while about N89 billion was saved through the Triangular Verification Model, another N1.8 billion was saved through the discount solicitations window all amounting to almost N91 billion.

“I did say that we developed a model we referred to as TVH Triangular Verification Model, as you are aware, we inherited the stranded debt of the entire defunct PHCN which amounted to almost N914bn. So that model we put in place to enable us conduct due diligence on the inherited debts.

“So arising from that due diligence we conducted, its a triangular verification model that includes the brevity of information, the prudent review of value, negotiations, verifications, solicitations for discounts and other items related to that, because we don’t have sufficient funding, NELMCO started without any seed fund from the Federal Government.

“We had to develop that model as the best way of managing these liabilities on behalf of the government. As I did mention, its a special purpose vehicle, there is no non of its kind before, so we have to our thinking box, to see how do we manage these debts on behalf of the government without the required funding, and that is why we developed that model.

“From that model, as I did mention we are able to save a total of about N89 billion on behalf of the federal government. And then, through the discount solicitations window, we saved another N1.8 billion.

“So when you add that up you are talking about almost N91 billion that we saved for the Federal Government. We have a compendium of all that savings after this interview we go to the hall so that I will show you a compendium of the what I am talking about,” he said.

Ibrahim Dasuki Arabi, the Director General, Bureau of Public Service Reforms, after the detailed presentation of the report on NELMCO, awarded the agency Gold Level Certificate, the highest performance in the self-assessment exercise.

Dasuki Arabi, who noted that the exercise will cause a positive revolution in the nation’s public service, disclosed that given the usefulness of the tool as a mechanism to check and improve performance of organizations, the Federal Government issued a directive vide a Circular BPSR/SGF/SAT/01/V.1 dated November 18, 2019 making it mandatory for the deployment of the SAT in all MDAs to further strengthen the process of delivering service to all citizens.

According to him, the BPSR has deployed the SAT to about 15 other government agencies including Nigerian Communication Satellite (NIGCOMSAT) Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) Universal Basic Education Commission (UBEC), Nigeria Extractive Industries Transparency Initiative (NEITI), among others.

He said the agency target to cover at least 50 more agencies before the end of the year, regretting that the emergence of Covid 19 pandemic had created set back to the the speed of the initial planned coverage of more than 100 agencies.

Didi Walson-Jack, the Permanent Secretary, Ministry of Power, who represented Alhaji Sale Mamman, the Minister, at the ocassion, expressed happiness over the rating of NELMCO and the Gold Level Certificate award given to the agency.

She urged BPSR to also deploy to SAT tool in other agencies under the ministry of power in order to improve their service delivery performances.

LEAVE A REPLY

Please enter your comment!
Please enter your name here