The Chairman of the House Committee on Power, Victor Nwokolo, has raised fresh concerns over Nigeria’s struggling electricity supply, calling for urgent and increased funding of the power sector as outages continue to disrupt economic and social activities across the country.
Nwokolo made this appeal on Thursday during the inauguration of the headquarters of the Nigerian Electricity Liability Management Company in Abuja, where stakeholders gathered to assess the state of the sector and chart a path forward.
The lawmaker said his call was prompted by the 2025 budget performance report of the Ministry of Power and its agencies, recently presented to the National Assembly. According to him, the report revealed funding gaps that could further weaken an already fragile power infrastructure if not urgently addressed.
Describing electricity as the backbone of national development, Nwokolo stressed that consistent investment remains critical to unlocking growth across key sectors of the economy. He warned that incomplete power projects due to inadequate funding often render previous investments ineffective.
“Without finance, the power sector cannot function,” he said, noting that even projects nearing completion could fail to deliver value if final funding is not secured. “If you invest trillions and fail to complete the last phase, it is as good as not starting at all.”
He further urged the Federal Government to expedite the release of funds to the Ministry of Power and its agencies, emphasizing that reliable electricity supply is essential for both large-scale industries and small businesses that form the backbone of Nigeria’s economy.
Also speaking at the event, the Chairman of the Senate Committee on Power, Enyinaya Abaribe, highlighted the significance of the newly inaugurated NELMCO headquarters. He noted that the facility would not only provide a more conducive working environment for staff but also reduce government expenditure on rented office spaces.
Abaribe described NELMCO as a key institution in Nigeria’s electricity value chain, particularly in managing legacy liabilities and creating an enabling environment for investment. He said the company’s role is crucial in fostering a more competitive and efficient electricity market.
In her remarks, the Managing Director of NELMCO, Mojoyinoluwa Dekalu-Thomas, provided an update on the company’s performance since its inception. She disclosed that NELMCO inherited liabilities exceeding N2.3 trillion but has successfully settled over N2.16 trillion through a combination of verification, reconciliation, and strategic negotiations.
Dekalu-Thomas explained that the settlements included more than N100 billion in direct payments to creditors, negotiated savings of about N700 billion, and the transfer of approximately N1.3 trillion in obligations to other Federal Government agencies. Additionally, nearly N1 billion was written off.
She added that the company remains committed to addressing post-privatisation liabilities while also providing risk mitigation mechanisms for potential investors. According to her, NELMCO will continue to support market liquidity and promote long-term sustainability within the sector.
The event underscored growing concerns among policymakers and industry leaders about the state of Nigeria’s power sector, with renewed calls for decisive action to address funding challenges and improve electricity supply nationwide.
WHAT YOU SHOULD KNOW
Nigeria’s worsening electricity outages have prompted urgent calls for increased funding, with lawmakers stressing that without adequate and timely investment, the power sector cannot function effectively or support economic growth.
