FG dissolves PHCN, pays workers N360bn

The Federal Government yesterday handed over the Power Holding Company of Nigeria, PHCN, and the 14 successor companies created following the unbundling of the PHCN to their individual new owners across the country in spite of threats by the former workers to cause crises during the ceremony across the country. The handover ceremonies took place in Abuja, Enugu, Egbin, Eko, Ikeja, Benin, Kaduna and Jos simultaneously.

The Vice President, Mohammed Namadi Sambo, said that yesterday’s handover marked the concluding stage of the transaction for the four generation and 10 distribution companies.

Minister of Power, Prof. Chinedu Nebo, who performed the official physical handover of Abuja Electricity Distribution Company to its new owner, Kann Utility Consortium Nigeria Limited, at a ceremony in Abuja noted that the government had successfully paid most of the former PHCN workers their severance and pension packages.

“Already, N360 billion has been paid out. The remaining N30 billion or so is in the pipeline and all the issues of certification, biometric capture and making sure that clearance is done are being completed,’’ he said.

Nebo explained that the Federal Government and the two key workers’ union leaders in the sector reached an agreement on Thursday to peacefully handover the power firms to their new owners.

According to him, “agreements have been reached. Please never in the history of this country has a government kept its word in issues like this as has been demonstrated by the present administration.

“Government is on it and the date has been fixed for some as November 15, while November 30 is for others. I have given my word and I am saying that no worker will be short-changed.”

Earlier in his address, Vice President Sambo, had said that the handover marked the concluding stage of the transaction for both the four generation and 10 distribution companies.

Sambo who was represented on the occasion by Professor Nebo said the participation of the private sector would bring about higher generation capacities through the provision of more efficient and cost effective power stations as well as improvements in distribution in the areas of billing, collection and transmission networks among others.

In Jos, the planned protest to disrupt the handing over of the PHCN facilities to investors could not hold as there was a successful handing over of the Jos Distribution company comprising Plateau, Benue, Gombe and Bauchi States to its new owner, Aura Energy limited amidst tight security.

Speaking at the handing over ceremony held at the Electricity House in Jos yesterday, the Vice-President, Arch Namadi Sambo who is the Chairman of the National Council on Privatization said the exercise is the roadmap to move the economic growth of the nation.

Sambo  who was represented by the Permanent Secretary, Federal Ministry of Information, Mrs. Folashade Esan said the successful privatization of PHCN indicates that where there is a will, there is a way as the event is “a culmination of 14 years painstaking efforts to liberalize Nigeria’s electricity industry”.

His words, “The reform is a necessary tool for laying a solid foundation for sustainable power generation and service efficiency in the sector and a precondition for the start up of a competitive electricity market in Nigeria.

”The reform and privatization program are rightly focused on the big picture which will impact on the economy as a whole and ultimately, the greatest good for the greatest number of Nigerians as it will open up the government dominated sectors of the economy to the private sector as well as divestiture of government interest in such sectors”.

Though acknowledging the challenges the sector is going through, Sambo assured the creation of an enabling environment and urged the new owners to ensure that the sector is “transformed to a world class company of reference in terms of quality of service delivery, social corporate responsibility, customers’ satisfaction and profitability” as appropriate agencies will “continually monitor the operations of the successor companies and would not hesitate to sanction any core investor that does not deliver on the performance agreement that was executed with government”.

Earlier in his address, the Acting Managing Director of Jos Electricity Distribution Company, Engr. Fidelis Obishai urged the investors to engage in training and re-training of staff to change their orientation from the public sector to private sector driven entity as well as involve in investment in metering.

Obishai further called on the former PHCN staff to “make the best out of the circumstance in which we find ourselves and understand that either in or out, it is a win-win situation for us”.

Meanwhile, the Chairman of Aura Energy Ltd, Alh. Tukur Modibbo assured the staff not to panic as “staff of PHCN have worked under terrible conditions for long due to lack of investment in the power sector” hence, “adequate investment through privatization will ensure improved power supply and conducive working environment for staff”.

”We welcome you on board and assure you that in this new environment, hardwork and initiative will be rewarded and Nigerians will no more suffer from the pollution from generators”, he added.

It was gathered that only about 15 out of the over 200 staff working in the zonal office were able to get their entitlements paid before the handing over.

Also, in Enugu, the Inter State Electrics, took over the management of Enugu Electricity Distribution Company, EEDC,with a promise to tackle the problems militating against power supply to the people of the South East states.

Two certificates transferring the control of the 18 business units that make up the EEDC to the new investors .were signed by the Chief Executive Officer of EEDC,  Suleiman Yahaya and the Managing Director/CEO of Interstate Electrics Limited , Robert Dickerman.

The new Chief Executive Officer of the EEDC, Dickerman, said that through the change in ownership, “there will be some reshaping of the company’s strategy, goals and objectives.”

Said Dickerman: “We will use integrity to make sure that all information we report internally and externally is correct and accurate. We will manage our operations and financial processes with integrity so that we can and do account for every naira, every piece of equipment and every asset that we are responsible for to the standard of an external audit”

He also assured members of staff that they would be considered as share holders of the company as a way of creating in them a sense of belonging, while calling on all to support the new vision of the company.

Vice President Namadi Sambo, represented by the Permanent Secretary in the Ministry of Petroleum Resources, Alhaji Danladi Kefasi, urged the new investors to stick to the rules of engagement.

Outgoing Chief Executive Officer of the EEDC, Suleiman Yahaya, said that the Enugu Distribution Company was made up of 18 business units covering Imo, Anambra, Enugu, Abia and Ebonyi states and have resourceful workforce that if given the right infrastructure would grow into sustainable and profitable company.

Chairman of the Interstate Electrics, Offor, said, “We want to turn around the place so that the people start getting light, start getting value for their money. It is not our duty to determine tariff. But we will provide good and qualitative services for them”, Offor stated.

In another ceremony in Benin, the Federal Government also formally handed over the Benin Electricity Distribution Company to core investors, Vigeo Power Limited. Vigeo Power Ltd with 60 per cent interest, is core investor in the BEDC.

Speaking during the ceremony, Chairman, Presidential Taskforce on Power, Mr Beks Dagogo Jack who represented the Vice President Sambo, described the occasion as a milestone, that would not have been possible without the commitment of President Goodluck Jonathan as the process of power reform in Nigeria was well-thought out and had been painstakingly pursued.

Chairman of Vigeo Power Limited, Mr. Victor Osibodu, in his address said that history would  “forever remember President Jonathan for this bold step.’’

Speaking at a similar event in Lagos Vice President Sambo, said the Federal Government would  monitor as well as punish any of the private core investors that failed to operate in accordance with the agreement signed with it.

Speaking through the Director, Bureau of Public Enterprise, BPE Mr. Benjamin Dikki, Sambo said, “Let me state clearly here that both the Nigerian Electricity Regulation Commission and the BPE will continually monitor the operations of the successor companies and would not hesitate to sanction any core investor that does not deliver on the performance agreement that was executed with the government.

“The participation of the private sector would bring about higher generation capacities through the provision of more efficient and cost effective power stations and improvements in electric power distribution, in the areas of billing and collection and transmission networks. Such capital injection and efficiency have been inadequate in PHCN over the years, resulting in gross inadequate power supply with the attendant negative effects on the citizenry and the economy at large.

In his address, Abiodun Ajifowobaje, Managing Director, Ikeja Distribution Company, commended  the Federal Government for the feat, describing it also as a watershed in the history of development of electricity industry in Nigeria.

Ajifowobaje commended the new owners of Ikeja Electricity Distribution Company, NEDC/KEPCO consortium for taking over the largest electricity distribution network in the country,”

West Power and Gas, WPG, the new owner of Eko Distribution Company, said it will spend over $250 million (about N40 billion) in the next few years to re-position the company.

Chairman of the company,  Mr. Charles Momoh, made this known, and explained that the amount would be invested in metering and cleaning up the cables, transformers and making sure that everything was in line with what have been specified.

“We have the responsibility to light up Lagos and keep it lit. This is a task before us which we must do and do it profitably.

“Our homes and businesses deserve the chance to thrive without the added expenses on generators and constant threat of outages. It will take time. It will take solitude. It will take commitment. It will take collaboration. But as with most things, the only difficulty that could arise is within ourselves. We know that this will not happen overnight, but we are optimistic that only success will follow,” he added.

Nationwide Blackout Looms as PHCN Workers Begin Strike October 2

The already deplorable power situation in the country may worsen as employees of Power Holding Company of Nigeria (PHCN) have threatened to stop the supply of electricity across the country by October 2 if the federal government goes ahead to handover the assets of the company to private investors today without the conclusion of payment of workers entitlements. The industrial action follows the expiration of the ultimatum issued by the workers to government to resolve all labour issues ahead of the privatisation of PHCN. In preparation for the industrial action, the workers will today hold a nationwide protest to alert Nigerians of impending shutdown of the power sector on Wednesday. Speaking under the umbrella of National Union of Electricity Employees (NUEE), the union directed its members to withdraw their services from all PHCN installations immediately after the celebration of the nation’s 53 Independence anniversary. The union, in a statement issued by its secretary, Joe Ajaero, said the industrial action became necessary in view of government refusal to resolve the outstanding labour issues with the workers. The union said it was particularly disturbed by the statement credited to the Chairman of National Council on Privatisation (NCP), Vice- President Namadi Sambo that government had settled all the labour issues which had impeded
the smooth take off of the privatisation programme and the handover to private investors. The union insisted that the vice-president was either being misled or deliberately keen on emasculating the PHCN workers with a view to further impoverishing them.
It challenged the Office of the Vice-President “to mention any person from his constituency - Kaduna State where he served as governor, who has been paid his entitlement, pension and gratuity.” The union further alleged governments deployment of military personnel to all PHCN facilities stating that the aim was to ostensibly to allow a forceful takeover of the installations without conclusively settling the labour issues. It noted that the policy of deploying soldiers to PHCN installations to intimidate workers was “definitely misguided and misdirected as they are directed to creating more tension to already tensed polity.” The statement read: “For clarity, please note that these issues are outstanding: payments of
terminal benefits: payment of the terminal benefits is yet to rise up to 50 per cent for the eligible workers. Non-payment of retirement savings fund to Pension Fund Administrators (PFAs): Up till this moment no efforts has been made to commence payment. The PFAs can attest to this fact. Non-remittance of 2 per cent of the union deductions as agreed: No word has been heard from the BPE/ government on remittance of this two person neither has the deductions already made from the paid workers remitted to the unions.” “Non-payment of retirees who disengaged since 2011: It is absurd and sordid for government not to think of settling these people who laboured over the years in service of this country and get retired meritoriously, while the privatisation exercise was on. Non- regularisation of some of the casuals already identified: With the biometrics done and concluded, it becomes worrisome on the continued delay in regularising the casuals who had been identified based on agreements already entered into. 10 per cent equity shareholding by the workers: In line with the relevant laws, the workers are entitled to 10 per cent Equity Share of the total sale of PHCN. But it appears the government is bent on short changing the workers.” “The shortfall of terminal benefits from June 2012 till date has not been considered for payment. “These contending issues cannot be jettisoned by the workers to allow any force to takeover! It behooves us therefore to advise the vice- president and those misguiding him not to toy with the socio-economic lives of PHCN workers, their families and other Nigerians who
depend on them for their livelihood. We are set to take our destiny in our hands. “Because of Independence Day ceremonies, we would be patient to allow for full celebrations. “However, we hereby urge Nigerians to bear with us if after October 2, the government goes ahead with her illicit handover to the investors and forceful takeover; the implication would be that the workers have technically been asked to withdraw their services and we may not be able to guarantee smooth operations. Consequently, if after October 2, the Office of the Vice-President fails to correct this misleading information, we shall not guarantee supply of electricity in the country. This is not a threat as our earlier ultimatum has expired.”

Privatization: FG hands over PHCN to new investors Sept 21

The Federal Government will hand over privatized successor companies of the Power Holding Company of Nigeria, PHCN, to private investors on September 21, 2013, if the investors pay on schedule.

The Director-General of the Bureau of Public Enterprises, PBE, Mr. Benjamin Dikki, disclosed this in an interview in Abuja.

He disclosed that the PHCN privatization was expected to earn the Federal Government about $2 billion.

Dikki said: “To purchase this Power Holding Company, over $2 billion will be paid by the bidders, and that is because the investors can see a clear investment horizon. They don’t have to go and lobby anybody, all they require is to meet the technical requirement, go to the regulatory authority, apply for licence and they are limited by their own ingenuity and their access to the capital.

“When they pay by September 21, we will hand over the companies to them or anybody who pays earlier and then they begin to operate.

“Labour issues have been resolved and the implementation committee on settlement of the PHCN staff terminal benefits commenced payment of N118 billion to the over 20,000 PHCN staff, at the beginning of this month”.

The BPE boss said the privatization programme of the Federal Government had significantly opened up the Nigerian economy by creating the right atmosphere for greater private sector participation in several key sectors.

He said the telecommunications sector stood out in terms of attracting massive foreign investment, which he put at about $40 billion to date.

His words: “The Nigerian economy is becoming more and more liberalised. So, we in the Bureau of Public Entreprise are not surprised. That is what we have been working for.

“That is the benefit of the reform, which the Bureau of Public Entreprise has been spearheading and also in consonance with the transformation agenda of President Goodluck Jonathan’s administration”.

“What this transformation agenda is doing is to create an enabling environment for the private sector investment in the country and that has given rise to reform activities in various sectors.”

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