At last, FG privatises PHCN, 40% workers retained

Finally, the Federal Government, on
Friday, officially concluded the
privatisation of Power Holding Company
of Nigeria after it handed company over
the 10 successor companies, retaining
40 per cent of the old workforce in the
process.
The handling over ceremony was
performed in Lagos, Ibadan, Benin,
Enugu and Abuja respectively.
One of our correspondents learnt that
the retained workers are given
temporary appointments by the Federal
Government to run the newly privatised
companies for six months as
It was gathered that two different
letters had been dispatch to the power
companies across the country for
onward circulation to workers as from
Monday.
A senior official of the defunct PHCN,
who spoke anonymously, told our
correspondent that one of the letters
was a disengagement letter while the
second one is a temporary
reappointment letter.
While all the 47,000 workers of the
defunct PHCN will receive their
disengagement letters, the source said
the temporary appointment letters
would only go to those that would be
retained for operations of the company.
Our correspondent also gathered that
the new investors might have asked the
Federal Government to do the weeding
out for them before the eventual take
over.
Meanwhile, the Federal Government
handed over three power assets in
Lagos on Friday.
The assets include Egbin Power Plc,
Ikeja Electricity Distribution Company
and Eko Electricity Distribution
Company.
The Vice-president, Namadi Sambo,
represented by the Minister of Industry,
Trade and Investment, Dr. Olusegun
Aganga, said the participation of the
private sector in the power sector
would improve power supply.
According to him, the final handover
marked the concluding stage of the
transaction for four generation
companies and 10 distribution
companies in the country.
He said, “The challenges facing the
electricity sector in Nigeria are
enormous, but we are equally convinced
that the opportunities in the sector are
enormous.”
Speaking at the official handover
ceremony of the Abuja Electricity
Distribution Company to its new owner,
Kann Utility Consortium Nigeria Limited,
the Minister of Power, Prof. Chinedu
Nebo, stated that the government had
paid out a whooping N360 billion to
workers of the defunct PHCN.
He explained that there might be some
teething issues such as an increase in
electricity tariff as soon as the new
power owners commence operations in
earnest, but stressed that the problems
would abate with time.
The Federal Government, on Friday,
formerly handed over the Benin
Electricity Distribution Company to core
the investors, Vigeo Power Limited, as
part government’s power sector
privatization programme.
Vigeo Power Ltd with 60 per cent
interest, is core investor in the BEDC.
Performing the official handing over
ceremony, Vice President Namadi
Sambo, who is also chairman, Bureau of
Public Enterprise, described the occasion
as a milestone, that would not have
been possible without the commitment
of President Goodluck Jonathan.
Represented by the Chairman,
Presidential Taskforce on Power, Mr.
Beks Dagogo Jack, the VP said the
process of power reform in Nigeria is
well-thought, saying the process has led
to creation of 18 successive companies
from PHCN with the view to attaining
uninterrupted power supply.
Chairman of Vigeo Power Limited, Mr.
Victor Osibodu, in his address
commended President Goodluck
Jonathan for the initiative.
The formal handing over of the Ibadan
Electricity Distribution Company to
Integrated Energy Distribution Company
was held on Friday at the Premier Hotel,
Ibadan.
Sambo, who was represented by the
Permanent Secretary, Ministry of
Finance, Anastasia Nwaobia, reiterated
the commitment of the Federal
Government to ensure uninterrupted
power supply.
He said, “The challenges facing the
electricity sector in Nigeria are
enormous, but we are equally convinced
that the opportunities in the sector are
enormous.”
The Ibadan distribution company
dispenses power to Oyo, Ondo, Ogun,
Osun and parts of Kwara, Kogi and Niger
states.
Enugu Electricity Distribution Company
was handed over to Interstate Electricity
Limited in Enugu on Friday with the
mandate to check epileptic power
supply in the state.
Sambo, who  gave the charge during the
handing over of the company, said
privatization was a necessary tool for
power regulation.