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PHCN: NELMCO gets BPSR top award for saving N91bn

By Obas Esiedesa

The Bureau of Public Service Reforms (BPSR) has issued the Nigeria Electricity Liability Management Limited (NELMCO) a Gold Level Certificate for coming tops in self assessment MDAs after it 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).

NELMCO Managing Director and Chief Executive Officer, Adebayo Fagbemi explained during the presentation of report of the Bureau of Public Service Reforms (BPSR) Self-Assessment Tool (SAT) deployed in the company on Thursday in Abuja that the savings were made 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.

He said: “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 government. As I did mention, it’s 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 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 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.

On his part, the Director General, Bureau of Public Service Reforms, Ibrahim Dasuki Arabi said the Gold Level Certificate, was awarded to NELMCO for highest performance in the self-assessment exercise.

Arabi expressed the hope that the exercise will cause a positive revolution in the nation’s public service, noting 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 speed of the initial planned coverage of more than 100 agencies.

The Permanent Secretary, Ministry of Power, Didi Walson-Jack, who represented the Minister of Power, Engr Sale Mamman, at the presentation 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.

Written by ExpressDay

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