14th August, 2012
Professor Barth Nnaji, the Minister of Power on Monday said the various unions to which workers of Power Holding Company of Nigeria belonged to are “constituting themselves as outlaws who are inconsiderate of the various positive steps being taken by Federal Government to address their plight following the privatisation of the organisation”.
Nnaji, who said this while addressing State House correspondents after briefing Goodluck Jonathan on Key Kerformance Indicator (KPI) in the Nigeria energy sector, was reacting to speculations over disengangement payments to workers of PHCN who may lose their jobs in the ongoing privatisation of the company.
While dismissing insinuations that the PHCN workers will receive a flat benefit of N85,000, the minister said the Federal Government has accepted to pay the aggrieved workers a total of 15 percent as severance package for each employee over a period covering 2003 to 2012.
According to Nnaji, this include 7.5 percent employer contribution as specified under the new pension law and another 7.5 percent expected to have been contributed by the workers themselves.
He said the workers have failed to comply with this aspect of the Pension law over the years but that government has accepted to pay such defaults amounting to 15 percent for each beneficiary.
The minister said with the arrangement, the least qualified staff of the PHCN with School Certificate will be paid a minimum of N8 million while the highest officer in the organisation will receive at least N38 million as total severance package.
“The talk about some staff going home with N85,000 is from people who have a different mission,” said Nnaji.
On the performance of the power sector, Professor Nnaji said the National Assembly NASS approved a total of N78.4b to cover other constituency projects, adding that of this amount, N21.5 billion had been released with N 11.4 billion representing 52.5 percent utilised.
The minister said 2012 budget focused on resucitating the Rural Electricity Agency to make electricity more accessible to Nigerians particularly in the rural areas.
“National Integrated Power Projects (NIPP) projects have been accelerated and will be completed this year. There are 10 NIPP plants across the country. Government is working hard to supply gas to the plants,” he said.
Nnaji said the focus of 2013 is on full implementation of the electricity reforms, completion of on going projects as well as establishment of gas and power infrastructure and better funding of generating companies.
He also assured that the improvement is in the state of supply being witnessed in some parts of the country will continue as a result of different ongoing efforts of government.
—Oluokun Ayorinde/Abuja