Total sum of litigation claims estimated to be more than N500 billion
The Nigeria Electricity Liability Management Ltd (NELMCO) has said it would resolve the more than 300 litigations against the Power Holding Company of Nigeria (PHCN) before its privatisation.
Sam Agbogun, the Managing Director of NELMCO, said on Thursday in Abuja that the company would ensure that all cases involving PHCN were settled to facilitate smooth privatisation exercise.
?We have lots of challenges that are not known to the public; there are more than 300 litigations in the court against PHCN,? he said. ?Many people sue PHCN ,and on the other hand, PHCN sued some people; as I am talking to you now, the claims by some of these people, either for electrocution, illegal disconnection, or trespassing, is over N500 billion. But all these cases must be resolved and NELMCO will not allow any one case to remain unresolved; and there must be out of court settlement for each of these cases to enable a smooth privatisation.?
Agbogun explained that the company had inadequate funds to settle its creditors, adding that it was working with the Ministries of Power and that of Finance, and the Budget Office to resolve the issue.
He also said that the company was having problems with the verification of customers? claims.
Agbogun said the Bureau for Public Enterprises was auditing the assets of the PHCN to determine its core and non-core assets, which would form the major sources of funding of the liability management company.