PHCN workers force FG to part with 97.5% of power proceeds

 

The least paid worker at the Power Holding Company of Nigeria, PHCN, could take home an amazing N8million in compensation following the completion of the ongoing plan to privatise the nation’s power assets, BusinessDay has learnt.

Three or four top level PHCN managers could receive just below N100 million each as their own pay off.

Under a deal with the workers, the Federal Government has accepted to pay a total of N384 billion to the staff of PHCN, and this is in addition to the N57 billion which was paid out in 2011 as monetisation arrears. The demand of the workers meant a payout of over 97 percent of the power privatisation proceeds.

According to a well-placed source who has knowledge of the negotiations, the workers will receive payment for redundancy, gratuity and arrears of payment into the retirement or pension accounts of the about 45,000 workers.

During the tenure of Bart Nnaji, former power minister, the total payments due the workers was negotiated and fixed at N144 billion in 2012, but no one is willing to explain how the sum ballooned to the current level, which is slightly below the total of N394 billion estimated for the purchase valuation of the power assets.

It is believed that the massive hiring and increase in the salaries and allowances of the staff in the last two years accounted largely for the massive increase in the government liability to the workers.

By a combination of strikes and threats to sabotage the nation’s power supply network, the workers’ union delayed the privatisation programme and now that it is moving apace, they have ensured that the nation will pay a huge price.

“This is akin to a ransom payment,” said one analyst who asked to remain anonymous due to the nature of his job.

“Technically, the workers appear to have been able to force the Federal Government to hand to them all the proceeds from the privatisation,” he said, adding that the managers of PHCN encourage the culture of wild expectations by going on spending binges acquiring flashy jeeps and cars as well as flying first class when their customers do not have meters.

 

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