FG to transfer part of N757Bn PHCN legacy debts to DMO

The federal government has disclosed its plans to transfer all legacy debts that arose from foreign loans that were left behind by defunct Power Holding Company of Nigeria (PHCN) to the Debt Management Office (DMO) for cancellation.

It also stated that it will write off all debts which the defunct PHCN owed other government agencies especially debts incurred from gas supplied by the Nigeria Gas Company (NGC) which is a subsidiary of the Nigeria National Petroleum Corporation (NNPC).

The Nigeria Electricity Liabilities Management Company (NELMCO) which was set up as a special purpose vehicle to liquidate operational liabilities incurred by PHCN explained that these options were thought up following efforts to reduce the huge debt inherited from PHCN overtime.

The Managing Director of NELMCO, Dr. Sam Agbogun stated on Monday in Abuja that with the transfer of some liabilities to DMO and the writing off of debts owed NNPC and other agencies in what he described as ‘debt swap’, NELMCO’s liabilities will be less by N392.2 billion.

[This Day]

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