. Pays N360b to staff .New owners disengage 47, 000 workers
By Adeola Yusuf (Lagos), Obas Esiedesa and Innocent Oweh (Abuja)
A major step was taken on Friday in the efforts of the Federal Government to improve electricity supply to Nigerians as four power generation firms and 10 distribution companies of the Power Holding Company of Nigeria (PHCN) were handed over to investors who had in August paid about $3 billion (N480b) for the assets.
Amidst tight security by soldiers across various formations of PHCN, the Federal Government completed the 14-year planned hand over of the power assets to the new owners.
At the handover ceremony, which took place simultaneously across the country, government threatened to sanction any new owner who defaults on the delivery of performance agreement they signed with it.
The companies that were handed over to their new owners are Ughelli Plant, Geregu I Plant, Kainji Hydro and Shiroro Hydro. The distribution companies are Ikeja, Eko, Ibadan, Jos, Kano, Yola, Abuja, Benin, Enugu and Port Harcourt.
Speaking at the ceremony to mark the handover of Abuja Distribution Company to KANN Consortium Utility, Vice President Namadi Sambo, who is also the chairman of the National Council on Privatization, noted that the day was historic as it marked the biggest divestment of public utility in Africa.
Sambo who was represented by the Minister of Power, Chinedu Nebo, assured Nigerians that the reforms being implemented in the sector by the government would increase consumers' access to electricity which will in turn stimulate economic growth.
"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 attendant negative effects on the citizenry and the economy at large.
Today's handover marks the concluding stage of the transaction with the four generation companies and 10 distribution companies," he said.
According to Sambo, "the challenge facing the electricity sector in Nigeria is enormous, but we are equally convinced that the opportunities in the sector are enormous. Therefore, the Federal Government is committed to creating the enabling environment for the private sector investors to take on these challenges and the opportunities therein to ensure quality and cost effective service delivery to Nigeria's electricity sector."
Sambo warned the new owners of the public utilities that government would sanction any of them who fails to deliver on the agreement reached with it, noting that government is determined to ensure that quality electricity gets to Nigerians.
He assured all PHCN workers that government would not short change any of them, disclosing that about N360 billion have been spent on the settlement of the workers.
He noted that the remaining N30b needed to complete the payment was ready and that government would adhere to the agreement it reached with electricity workers' union on Thursday that paved the way for the handover.
Meanwhile, Saturday Independent gathered that the new owners have swiftly served 47, 000 staff members of the former PHCN with disengagement letters while only about 40 per cent were engaged.
"All of us got letters of disengagement while just a few of us got letters of engagement and it was stated there categorically that we are on probation for six months," a management staff of one of the assets told Saturday Independent.
