Over 50,000 ex-PHCN staff have received N373b severance entitlement endorsed by NLC

About 50,000 ex-Power Holding Company of Nigeria employees received severance payment and other entitlements of over N373 billion midwifed by the Nigeria Labour Congress to pave the way for the power sector privatization exercise that was concluded in 2013.
Industry watchers have said the endorsement of the exercise by the Nigeria Labour Congress, which was widely hailed at the time, is driving ongoing investments that have boosted the nation’s power generation capacity, which recently hit 5,000mw for the first time in decades.
According to reliable sector data, 46,744 staff, representing 98 per cent of the workforce of the defunct PHCN, had been paid their entitlements, which amounted to N373,170,291,200.38.
In addition, 2,791 staff, representing 65 per cent of retirees, had been paid N16,414,926,902.38.
According to a top labour source, who preferred anonymity, the decision of the NLC to “shut down the economy” over the recent introduction of a new electricity tariff would set the nation back by many decades.
The source said: “Whilst we have yet to achieve the desired goals the privatization was meant to achieve, we have made significant progress, including increase in generation and ongoing metering by Discos to address the issue of estimated billing.
“This exercise cost Nigerians over N350 billion.
“Putting more pressure on our sliding economy through the proposed ill-advised strike would be a colossal waste to the entire nation.
“The move by NLC actually makes one wonder whose interest the congress is really representing.
“What we are seeing is most likely a clear case of the congress being hijacked by a cabal.
“Is the motivation the union fees that are realized after successful negotiations or genuine care for the masses?
“Also of note is the question of the mass transit buses that were given to the NLC through the SURE-P programme.
“As of today, Labour has been unable to neither account for them nor provide details as to the state and/or whereabouts of these buses.
“Are they fighting the cause of dealers in power generating appliances who stand to lose billions of Naira from a robust power sector?
“Given the precarious state of the economy, we truly cannot afford the actions of self-serving labour leaders who only play to the gallery.”
It would be recalled that Minister of Power, Works and Housing, Babatunde Fashola (SAN), recently stated that the adjustment in tariff remained the only way to enhance stable power supply in the country.
Fashola said the sector was in dire need of a cost reflective tariff that can address the distress in the sector and encourage more investments.
He said: “There are a lot of investors who want to pay a little more than the open market tariff.
“If we want them to come into the industry, we have to allow the new tariff order, which allows for embedded order.
“There are a lot of people producing excess power, which they want to put on the grid but the price must be right and reflective of the needed additional investments.”
In addition, the Nigeria Electricity Regulatory Commission has said the new tariff plan includes a proviso for a detailed road map for the investors to provide the needed metering systems and these should be used as the yard stick for measuring and holding both players and regulators accountable towards providing the appropriate infrastructure requirement for the sector.