PHCN owing NNPC, others N392bn

19 September 2012, Sweetcrude, ABUJA – THE Nigeria Electricity Liability Management, NELMCO, has put Power Holding Company of Nigeria, PHCN’s, total debts as at August this year at N392 billion.

Dr. Samuel Agbogun, managing director of NELMCO, said the debts have been mounting due mainly to cost of gas being supplied to power stations by the Nigerian Gas Company, a subsidiary of the Nigerian National Petroleum Corporation, NNPC.

NELMCO is a special purpose vehicle created by the the Nigerian government into which it domiciled the huge PHCN liabilities that cannot be settled from the expected proceeds of the sale of the various assets of the national power monopoly.

Agbogun said NELMCO is also to assume and manage pension liabilities of PHCN employees, as well as, hold the non-core assets of PHCN with a view to selling them off “or deal in any manner for the purpose of financing the payment of debts of other related matters”.

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  • This is not proper at all. Under the current circumstances, the NNPC should be bankrupt for all intent and purposes. Perhaps if not for sovereign guarantees, it would have long been over for the corporation. This is the reason why we have persistently called for the privatisation of the PHCN.