Nigerian Electricity Management Service Agency has been given a two-year deadline to become financially independent and exit the federal government payroll, according to the Minister of Power, Adebayo Adelabu.
Speaking during the inauguration of the agency’s board in Abuja, Adelabu revealed that NEMSA had previously faced removal from government funding but was granted an extension following his intervention with the National Salaries and Wages Commission.
“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 said.
He tasked the newly inaugurated board to generate sufficient internally generated revenue (IGR) to sustain the agency’s operations, including staff salaries and overhead costs. Adelabu emphasised that NEMSA must explore innovative ways to raise funds, particularly through value-added services within the electricity sector.
The minister also indicated that part of the strategy would involve allowing the agency retain a larger share of its revenue, rather than remitting everything to the Treasury Single Account, and pledged to engage the Federal Ministry of Finance to support this approach.
Beyond funding, Adelabu highlighted the need for capacity building, noting that staff require updated local and international training to meet the technical demands of the industry. He also stressed that the agency must tackle the use of substandard materials in the power sector, linking poor compliance with technical standards to issues such as grid collapse.
The newly inaugurated board, chaired by Ikechi Nwosu, acknowledged the challenges ahead, stating that the agency would require both increased manpower and advanced training to effectively regulate the sector.
NEMSA is responsible for enforcing technical standards and ensuring safety across Nigeria’s electricity supply industry, and the government’s directive signals a push for greater financial autonomy and operational efficiency within the agency.
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