By Observers Times
The Nigerian Electricity Liability Management Company (NELMCO) is at the centre of a growing scandal involving allegations of financial misappropriation, ethnic favouritism, abuse of office, and operations beyond its legal mandate.
Observers Times gathered that the company, established in 2006 to manage the non-core assets and liabilities of the defunct Power Holding Company of Nigeria (PHCN), has continued to operate nearly two decades later far beyond the five-year tenure stipulated in the Electric Power Sector Reform (EPSR) Act of 2005. The repeal of the EPSR Act through the Electricity Act of 2023 further complicates NELMCO’s legitimacy.
One of the most controversial developments involves the acquisition of a new office building. In January 2023, NELMCO reportedly purchased a property valued at ₦1.7 billion, located directly opposite the residence of Seyi Tinubu. The transaction has sparked concerns among stakeholders and transparency advocates, particularly because the office acquisition was allegedly conducted without following proper approval channels.
A report by the Auditor General of the Federation released in October confirmed several irregularities surrounding the purchase, including violations of procurement rules and the bypassing of required authorisations.
Sources within the agency accuse NELMCO’s Managing Director, Mojoyinoluwa Dekalu-Thomas, of repeated breaches of public service regulations.
“She doesn’t have respect for anyone,” one aggrieved staff member told Observers Times. “She travels every two weeks to London and Dubai on public funds and refuses to do proper handing over when she is away.”
This practice, they allege, undermines the chain of command within the organisation and stifles effective decision-making.
Beyond financial impropriety, there are claims of widespread ethnic bias in hiring and job assignments. According to internal sources, positions and responsibilities within NELMCO are predominantly allocated to individuals from the Yoruba ethnic group, many of whom reportedly lack the qualifications necessary for their roles. These actions directly contravene the Federal Character Principle enshrined in the Nigerian Constitution and call into question the agency’s commitment to merit-based employment.
The alleged insertion of Cooperative members into NELMCO, bypassing legal employment processes, has further deepened the crisis. Staff allege that dissent is met with intimidation, contributing to a toxic work environment.
“There is a culture of fear now,” a senior employee lamented. “Even the workers’ union has become paralysed. They can no longer defend our rights.”
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The Association for Public Policy Analysis (APPA-Nigeria) has formally petitioned the House of Representatives Committee on Public Assets, urging a comprehensive probe into NELMCO’s operations. Speaking to Pointblanknews.com, APPA’s National President, Chief Princewill Okorie, questioned the continued existence of the agency.
“The continued existence of NELMCO beyond its legal mandate is unjustifiable,” he said in the petition dated 13 November 2024.
The petition detailed staggering figures: NELMCO inherited over ₦2.3 trillion in liabilities, has settled about ₦1.3 trillion, and has ₦972 billion in outstanding obligations. It also revealed that the agency paid ₦39.8 billion in ground rent to 35 states, with ₦2 billion still unpaid. Furthermore, NELMCO allegedly spent ₦94.9 million on board training and made unverified payments to companies such as CEA Professional Services Ltd. and GLB Global Services Ltd.
“There is no legal or financial justification for NELMCO’s prolonged existence beyond the five-year post-privatisation period,” APPA argued. It also noted that the agency proposed acquiring a permanent office building worth ₦15 billion, spent ₦200 million on office infrastructure, and raised annual rent payments from ₦34 million to ₦50 million all while its relevance is being questioned.
The group also criticised the creation of regional offices in states lacking regulatory bodies or distribution companies, describing the initiative as both “unnecessary and wasteful.”
Reacting to the petition, Managing Director Mojoyinoluwa Dekalu-Thomas told Pointblanknews.com: “The petition in question has been withdrawn. Our lawyer has also written to the petitioner and taken legal action.”
However, Chief Okorie maintained that the petition remains valid. “Yes, I received a letter from them, but I have not withdrawn the petition,” he confirmed. He also claimed that his follow-up letter was ignored by the agency.
Documents reviewed by Pointblanknews.com indicate that the House Committee on Public Assets has been notified of NELMCO’s demand for a retraction. Yet, a source within the committee disclosed that
“NELMCO had been invited for a hearing but has, on several occasions, failed to appear before the House.”
Given the gravity of the allegations, stakeholders are calling for an urgent public hearing into NELMCO’s financial dealings, particularly the sale of former PHCN properties and the handling of a 10% staff welfare allocation. Analysts argue that such a forum would not only establish accountability but also restore public trust in the agency.
