FG Hands Over PHCN To New Owners..Retains 40% Work Force

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.