The Nigerian Electricity Management Services Agency (NEMSA) has been given a two-year deadline to achieve financial independence and exit the federal government payroll, according to the Minister of Power, Adebayo Adelabu.
Speaking at the inauguration of NEMSA’s board in Abuja. Adelabu disclosed that the agency had previously faced removal from government funding. However, it granted an extension after his intervention with the National Salaries and Wages Commission.
“I fought on your behalf about two years ago when NEMSA nearly removed from the federal payroll. Now, you have two years to become self-sufficient,” the minister stated.
Adelabu urged the newly inaugurated board to focus on generating sufficient internally generated revenue (IGR). To cover the agency’s operations, including staff salaries and overhead costs. He emphasized the need for innovative revenue streams, particularly through value-added services in the electricity sector.
As part of the strategy, the minister proposed allowing NEMSA to retain a larger portion of its revenue instead of remitting all funds to the Treasury Single Account. He also pledged to work with the Federal Ministry of Finance to support this approach.
Beyond financial independence, Adelabu stressed the importance of capacity building. He highlighted the need for staff to undergo updated local and international training. To meet the technical demands of the power industry. Additionally, he called on the agency to address the use of substandard materials in the sector, linking poor compliance with technical standards to issues like grid collapses.
The newly inaugurated board, led by Chairman Ikechi Nwosu, acknowledged the challenges ahead. Nwosu noted that the agency would require more manpower and advanced training to effectively regulate the electricity sector.
NEMSA tasked with enforcing technical standards and ensuring safety across Nigeria’s electricity supply industry. This directive from the government underscores the push for greater financial autonomy and operational efficiency within the agency.
