FG Mandates Nigerian Electricity Management Service Agency to Achieve Financial Independence within Two Years

The Nigerian Electricity Management Service Agency (NEMSA) has been given a two-year timeframe to cease relying on government funding and achieve financial independence. This directive was conveyed by the Minister of Power, Adebayo Adelabu, during the recent inauguration of the agency's board in Abuja.

Adelabu informed the board that NEMSA had previously faced potential removal from the federal payroll. However, he successfully intervened with the National Salaries and Wages Commission, securing an extension for the agency. "I told you about the battle I fought on your behalf about two years ago when they were almost removing NEMSA from the federation’s payroll… So you have two years," the minister stated.

He impressed upon the newly appointed board the critical task of generating substantial internally generated revenue (IGR) to fund the agency's operations, including salaries and overheads. The minister stressed the need for NEMSA to identify and implement innovative strategies for revenue generation, particularly by leveraging value-added services within the electricity industry.

Furthermore, Adelabu indicated that a portion of the agency's earnings could be retained by NEMSA, moving away from the current practice of remitting all revenue to the Treasury Single Account. He pledged to collaborate with the Federal Ministry of Finance to facilitate this policy adjustment.

Beyond financial matters, the Minister emphasized the imperative of enhancing the agency's capacity. He highlighted the necessity for staff to undergo updated local and international training to keep pace with the evolving technical requirements of the power sector. Adelabu also underscored NEMSA's role in combating the use of substandard materials in the electricity sector, asserting that non-compliance with technical standards contributes to critical failures like grid collapses.

Ikechi Nwosu, the chairman of the newly inaugurated board, acknowledged the significant challenges ahead. He stated that NEMSA would require both an expansion of its workforce and advanced training programs to effectively execute its regulatory duties within the power sector.

NEMSA holds the responsibility for enforcing technical standards and ensuring safety across Nigeria's electricity supply industry. The government's latest directive signifies a determined effort to foster greater financial autonomy and improve the operational efficiency of the agency.