The Nation Newspaper

Tag: PHCN

  • Let there be light

    Let there be light

    Six months after the coming of the distribution and generation companies, DISCOs and GENCOs, power supply and generation remain absymally low. The privatisation of the Power Holding Company of Nigeria (PHCN) seems not to have solved the epileptic power problem. What is the way out? The DISCOs and GENCOs say it is by sacking the inherited PHCN workers, who they believe do not measure up. They plan to inject fresh funds into their operation after the planned sack; writes Assistant Editor, EMEKA UGWUANYI.

    When private investors acquired the assets of the Power Holding Company of Nigeria (PHCN) last year, many electricity consumers felt their prayers had been answered. They thought that the era of blackouts, excessive load-shedding, power rationing and paying for electricity not consumed was over. But things have not gone that way. Shortly after the generation and distribution companies GENCOs and DISCOs took over, supply dropped and has since remained so.

    Then came the blame game. The Federal Government blamed the GENCOs for not supplying enough electricity for transmission and distribution; the GENCOs berated the government for failing to wheel enough gas to run the turbines. Since gas is the feedstock for the turbines, it is difficult to run them without it.

    However, the power sector is undergoing a paradigm shift. To meet consumers’expectations, The Nation gathered that the investors are set to implement their agenda for improving power.

     

    Current investment/operational plans

    Initially, investors in the 11 DISCOs had an understanding with the Nigerian Electricity Regulatory Commission (NERC) to invest $1.8 billion between last year and 2017 as capital expenditure (CAPEX) to improve supply on sustainable basis through repairs and replacement of damaged and obsolete equipment.

    A breakdown of the investment shows that Ikeja Electricity Distribution Company (IKEDC) requires an average annual investment of $58.737 million for five years to improve power supply, Eko and Ibadan Electricity Distribution Companies, $45.17 million and $43.865 million yearly, and Abuja Electricity Distribution Company, $36.606 million.

    Others include Kano DISCO, $30.379 million; Kaduna DISCO, $29.96 million; Enugu DISCO, $27.23 million; Port Harcourt DISCO, $25.514 million; Benin DISCO, $24.314 million; Jos DISCO, $22.755 million and Yola DISCO, $13.133 million.

    What they met on ground, however, has made them to restrategise. Before their takeover of PHCN assets, the investors had an agreement with labour groups in the power sector to retain the workers of the former state-run power firm for six months. But, when the investors took over, they discovered that the wage bill was “too huge” for them to bear and as such they disengaged some workers. The workforce is still large. To get the right size, they decided to further reduce the staff.

    The investors, it was learnt, have concluded their staff auditing and, penciled down for sack former PHCN workers deemed to lack the requisite skills. It was also learnt that some of them hired KPMG and PricewaterhouseCoopers (PwC) for the auditing to ensure transparency and professionalism. The workers may be asked to go by the end of this month.

    An official of one of the DISCOs, who spoke to The Nation in confidence, said: “We have concluded our staff auditing. You are aware that the six months agreement will expire by the end of this month. Some of us have engaged reputable auditing firms, such as KPMG and PwC, to carry out the exercise. The essence is to ensure transparency and professionalism in carrying out the exercise and the truth is that the era of family connection as a criterion to secure job in the power sector is over.

    “We have decided to sieve the workforce, keep those that have the required skills, prepare those who have the motivation to move the company to the next level, and have the operational excellence to give power to the man on the street, and disengage those without the required skills. In fact, the auditing was both scientific and professional.”

    The GENCos and DISCOs have new investment plans following a facility inventory showing areas requiring attention. For instance, the management of West Power and Gas Limited, owners of Eko Electricity Distribution Company (EKEDC), said it has drawn a N42 billion investment plan for the acquisition of transformers, feeders and other equipment to strengthen its network and reinforce electricity supply within five years.

    Its Chairman, Charles Momoh, and a Director, Dr Tunji Olowolafe, said the company is being repositioned to serve customers better. They added that because of poor power supply from the national grid, the company is exploring possible off-grid supply.

    The Chairman, Sahara Energy Group, owners of Ikeja Electricity Distribution Company and Egbin Power Generation Company, Mr. Kola Adesina, said he could not give the amount the group would invest because of what it plans to achieve. He, however, noted that a substantial investment is being planned to improve supply and customer service in both companies.

     

    Gas supply challenge

    The Group Executive Director, Gas and Power, Nigerian National Petroleum Corporation (NNPC), Dr David Ige, confirmed that the corporation has gas supply challenge. He said the complaints of the investors are genuine.

    Ige said: “There is truth in their complaints. Over the last two to three years, we have seen a big growth in our gas supply development. “We have maximised our efforts in infrastructure; every day we are building new pipeline infrastructure. Gas supply has grown from 500 million standard cubic feet per day (MMscf/d) three years ago to 1.5 billion standard cubic feet per day (Bscf/d). But we are having serious short time challenge and there are two things responsible for that.

    “The first arises mostly from vandalism. So, at every point in time, we are repairing one pipeline or the other. Last year, Escravos-Lagos Pipeline System (ELPS) was down for seven months. Now ELPS is back, Trans Forcados is down. At every point in time, we have been experiencing one major outage or the other. And the way our system works is that the pipeline artery connects major gas supply assets. Trans Forcados pipeline is connected to Oben, Sapele and Pan Ocean gas plants, so when it is down, we lose three plants at once.

    “When ELPS is down, we lose Escravos, so we are truly struggling with these outages and because it happens repeatedly and there is almost no time one of them is not down, all the efforts that we have made in terms of bringing supply up, the consumers never have been able to see the full benefits. This is because there is always one problem or the other.”

    The other problem, Ige said, is that of supply shortfall. He said facilities working normally need regular maintenance but this is made difficult by the high rate of vandalism and the few facilities available. This, he said could cause serious disruption in the system.

    Ige continued: “By not taking them out on maintenance, they are also turning over more than expected. So, we are suffering a little bit of short term challenge. We expect that through the course of this year, they (power investors) would have had more gas supply.

    “Really, the problem now is a short term stabilisation problem. I agree we haven’t built supply to the full capacity of demand for gas but we have always known the gap would be there until next couple of months. We are going up in gas supply and they (power suppliers) are going up. There is a gap but we are closing the gap over the next couple of months. That has always been in our plan but our biggest challenge is that the supply we have brought to bear is like at any point in time we are struggling with unplanned outages.

    “I think the power sector investors are jittery right now. There is no doubt about it but the (gas supply) challenge is a short term challenge because the fundamentals are there, the gas pipelines are being built. We have never put as many pipelines as we are putting right now and the supply is being developed as well.

    “Hopefully, we will get to a point where we will overcome this very short term issue and people would see the benefits. A lot is going on in the background that will make that happen.”

    On whether the Joint Task Force (JTF) is not doing its job of policing the pipeline as vandalism is getting worse, he said: “Everybody is doing his job but it is a very difficult problem to deal with and, ultimately, you need a social re-engineering. “These pipelines are hundreds of kilometres long and it is impossible to man every kilometre 24/7. We really need to get to the people who are doing this to change their attitude.

    “Social re-engineering will contribute significantly to solving the problem because people need to know that there cannot be a sustainable solution in their attacking a national infrastructure; it doesn’t solve their problem. There has to be a better way of agitation. For those who break crude oil pipeline, we really have to reorientate them because we can put as much security but we have got over 5,000 kilometres of pipeline. So, how many security people are we going to put on every kilometre?”

     

    Finding solution

    The investors are facing the challenges of meeting customers’ power supply needs and recouping their investments. But, with the state of power supply, it is clear that they need alternatives to remain in business. Currently, some of the DISCOs cannot pay for their supplies from the Nigerian Bulk Electricity Trading Plc (NBET) from the national grid.

    Lagos, Eko and Ikeja DISCOs are contemplating sourcing power from captive power generators and other embedded generators (generation outside the grid) to be able to meet the power demands of customers. Adesina said grid supply has become insignificant, adding that the management of Ikeja DISCO is sourcing about 230 megawatts (MW) from off-grid supply.

    Mr Yeom Gyoo Chull, Managing Director, Korea Electric Power Nigeria Limited, Sahara Group’s technical partner, said management has been discussing the transformation of Egbin plant. He said the power firm is to restore Egbin to its full capacity of 1,320MW this year and build more turbines that will provide additional 1,350MW.

    He added that the construction of the 1,350MW additional capacity will begin within three years, promising that on completion, it will bring the combined output of Egbin to 2,670MW. He noted that the target is to achieve a total capacity of over 10,000MW in the next decade if the demand permits.

    He said: “We intend to collaborate with our partners in Nigeria to initially restore Egbin to its fully built capacity of 1,320MW within the year and provide additional projected capacity of 1,350MW commencing within the next three years, thus at completion, we’ll have 2,670MW, with the aim of achieving a total capacity of over 10,000MW in the next decade if the demand permits.”

    The Managing Director, Egbin Electric Power Plc, Mike Uzoigwe, said only one turbine of the six-turbine power plant is not working. The six turbines generate 220MW each but the plant generates far below what it is supposed to generate. He said Egbin can generate 1080MW but gas supply constraint has limited output to just over 600MW.

    The Chief Executive Officer, Eko DISCO, Dr Oladele Amoda, told The Nation that the management was exploring other options of getting power outside the grid for distribution to customers because of gas supply challenge.

    Amoda said: “We want to get power from embedded generation. The main purpose of this initiative is that we will not continue to rely on the power that we get from the grid because it is not constant; it fluctuates. Besides, in the past five months, we have not been able to get more than between 250 and 260 megawatts (MW) and even sometimes less than 100MW while we have the capacity to take 700MW, which is the demand. You can see the difference between an average of 200MW and 700MW daily.

    “The consequence of this huge supply gap is rationing of available power and massive load-shedding going on now. The power supply gap, according to the GENCOs, is due to inadequate gas to run the power stations following pipeline vandalism and sabotage. “So, that is where we are now. But going forward, we are looking at about 400MW from embedded generation that will be under our control and will not be subject to grid supply. This will enable us to offer our customers a measure of stable power supply. “The initiative will enable us plan maintenance of our facilities when necessary by having a regulated load-shedding programme that everybody will know but currently, we cannot do any reasonable load-shedding programme.

    “We hope to roll out the first PPA Power Purchase Agreement) and actual embedded generation into our system between July and August this year. Currently, we are also discussing with companies that have excess captive power such as Flour Mills and Honeywell as well as other companies in Apapa and Agbara that are generating more than they need. That one will come on very quickly. We have Island Power where we get 1.5MW. The Island Power arrangement is ready but we get the 1.5MW during off-peak period (10pm to 6am daily), so we target some companies that will take the power. The Island Power deal will come into operation by the end of this month.”

  • ‘Poor power supply not good for business’

    ‘Poor power supply not good for business’

    Despite the privatisation of the Power Holding Company of Nigeria (PHCN), there has been no improvement in electricity supply. Companies are still generating their power or relying on generators. This is not good for business, says Mr. Kayode Oluwasegun-Ojo, Managing Director of Nigerian Aviation Handling Company (NAHCo) Plc. In this interview with   KELVIN
    OSA-OKUNBOR, he argues that inadequate power is a “private-sector problem, which is affecting NAHCo a bit”, adding: “We sincerely hope that with the privatisation of power, we will see its impact on our cost profile and we can become more profitable and give our shareholders more dividends”.

    That has been the experience running NAHCo, after 35 years of its existence?

    It is a remarkable feat that the company is still doing well after all these years. Many companies that started about the same time have fallen out of business.

    Though I was not here when the company started, it has come a long way in doing what it knows how to do best. That is just the first perspective, general business, in relation to an industry where we provide a service, in the aviation industry.

    I would like to remind stakeholders that the aviation is about the youngest service industry around the world, compared to either the banking industry or others.

    Even, the brewing industry is older. The aviation industry started about the time the first aircraft was airborne.

    In Nigeria, KLM Airlines is about the oldest. So, if you situate the 35 years of existence of NAHCo within the context of how old the aviation industry is in Nigeria, you will agree that the company has done well.

    What factors are you using as the benchmark for performance?

    Generally speaking, I think aviation in Nigeria has done well. Just as NAHCo in the period under review has done well also.

    One of reasons we believe we have done well is the industry is international and we have carried out operations within the parameters of international standards . We have transformed over the years from being a former state-owned enterprise to a publicly owned company.

    The government used to own 60 per cent equity in NAHCo.

    But today, the company is fully quoted on the Nigerian Stock Exchange and has alliance with an international brand – the Aviance Group, a global leader in ground handling. Our alliance partner operates in over 117 airports across the world.

    We have after the privatisation of the company obtained and retained the international ground handling certification – ISAGO certification.

    As a global leader in the business, others have followed us in Nigeria to pursue same certification.

    NAHCo is the first in West Africa to secure the ISAGO certification.

    What are your plans?

    Our plans for the future is to continue the transformation by diversifying into other areas of related business as well as expanding along the West and Central African Coast to replicate similar business of ground handling and passenger ramp services .

    We are planning to extend to these countries what we have done successfully in Nigeria since the past 35 years.

    What has been the winning strategy for NAHCo after its privatisation years ago?

    The hand of God has been upon this company. This is aptly so because I am a man of faith. The second factor NAHCo has moved from one level of accomplishment to another is the corporate policy of insisting on certain standards of services we render.

    We follow as much as possible high standards of corporate governance. This has helped us to finetune our processes even in the recruitment of key persons from competitive sectors of the economy .

    In NAHCo we pursue issues that are value based. This singular strategy has accelerated the growth of NAHCo. It moves in the direction where it can yield returns on investments.

    So, we always look out for what will give us the best in Nigeria; that I think is responsible for our achievements as a company.

    What is the relationship between the level of success and adherence to the principles of corporate governance?

    We have policies that are value driven. This is how we pursue the policy of corporate governance in our operations.

    About four years ago, NAHCo voluntarily invited a team from the International Air Transport Association (IATA) to put in place the process that led to our international certification.

    That, for us, is a strategy for international benchmarking. Iy required opening up our operations to a lot of standards, rigours and that has helped us to achieve some success.

    We have also done some local adaptations, but it does not tamper down the standards of our operations. All these have helped us to attain some level of success.

    In our line of business, the minimum standards of safety must be maintained for our clients, who insist on global standards anywhere their aircraft require handling by our personnel.

    We must not compromise on safety and security of our operations . We must strive at all times to keep to our operational standards .

    What is the relationship between NAHCO and Nigeria Customs Service at the Lagos Airport, in view of the recent closure of your bonded warehouse over allegations of poor documentation of cargo?

    We are working hard to engage all stakeholders in the sector including the Nigeria Customs Service. Last year, the warehouses of NAHCo and SAHCOL were shut down over a lot of procedural issues, and the processes of running the warehouses.

    After that experience, we sat down with officials of Customs and other stakeholders, including cargo and clearing agents, and signed a memorandum of understanding stating how we would operate, including the dos and don’ts.

    From that time till date, we have been adhering to the template of the agreement we signed as a guideline.

    One thing I want us to take on board is that if you operate in a bonded Customs warehouse as we do, there must be some level of cooperation between all operators and personnel of the Customs. Such cooperation NAHCo has enjoyed in the past 35 years and will continue to enjoy.

    So, we work hand-in-hand with them to ensure things are done properly in line with international standards. We would ensure that neither NAHCo nor Customs loses out to other stakeholders.

    How has the influx of foreign airlines, especially since 2008 impacted on your business? What is your projection for the future?

    We are in the secondary end of the value chain; the primary decision to fly an airline is taken by passengers and the primary decision to consign goods is taken by a consignee. We do business with the airlines; we are the service providers and not at the retail end. However, of the over 30 foreign airlines that come in, we handle 85 per cent of them including their cargoes. You are right that since 2008, a lot of airlines have come in and I would say we have been able to maintain the same ratio in terms of keeping ourselves at that top.

    On outbound passengers, we will still benefit because we are at the secondary end of the market. As far as we still remain a prosperous country of 170 million people, who have the means to fly for leisure, business and education, we are still on ground as it were to deal with the request of the airlines to be carrying those passengers. In fact, we will say that our joy will be to see a lot more of local participation without compromise for international standards. Our pride in nahco is that we are a Nigerian company; we have been working with foreign airlines for 35 years, delivering services in a local context, but with international standards.

    What are the major challenges confronting your business?

    This is not a nahco alone problem, but a significant problem for the private sector. It has affected us a bit. We run several generators and provide some infrastructure around the airports such as Closed Circuit Television (CCTVs), and a lot of other things. At the end of the day, because the primary issue in this industry revolves around safety and security, we cannot but do these things because if we don’t, we might not be in business.

    If you look at our results in 2011 and 2012, at the profit and loss, you will see that we have been spending lots of money to maintain those things. It’s part of the cost of doing business, but we sincerely hope and pray that with the privatisation of power and other reforms being undertaken by the Federal Government, we will see the impacts of those things on our cost profile and we can become more profitable and give our shareholders more dividends.

    How secured are your warehouses across the country?

    We have moved away from the manual disposition of the pre-2010 era. We are using technology and have recorded a lot of gains. For obvious reasons, I won’t tell you more than that. We are no longer relying on human beings to find out when things occur. This has prevented a lot of things; it has also detected a lot of things. If you go to our Lagos warehouse, you will notice that there is an inscription that says “this place is covered by CCTV.” You can do whatever you like, but we will definitely catch up with you.

    How are you tackling the challenge of luggage delay at the airport?

    There are a few clarifications we have to make in this area. First of all, we are a ground handling company, which means we provide service at an infrastructure owned by the Federal Government. So, we do not own the carousels, which take the luggage to customers. However, we have strict service level agreement with our airlines and I am somebody who flies pretty regularly and I also have people who do mystery shopping for us in nahco. I want to tell you that in the last five to six months, there have been significant improvement in terms of timing of when people get their bags. However, if there is power outage in the whole of a terminal building, that remains a challenge. But in terms of people getting out their baggage on time, I believe this has improved significantly.

    How do intend to extend the frontiers of the business in Africa and beyond?

    In terms of the geographic expansion, it our plans for expansion will be aviation and aviation related areas of business.

    One of the best ways to solve a problem according to mathematics is to move from the known to unknown areas.

    So, our approach is to start from what we know , which is aviation ground handling into other areas of business.

    In the first instance, we will stay within our industry competence, before we will seek to enlarge other opportunities, as they present themselves on a case by case basis.

    NAHCo is one of the few companies that are successful after privatisation and is one of the few publicly quoted in aviation industry. What is the relationship with shareholders?

    The first objective of a company is to preserve and build value. This exactly we have done. The performance of the company is good in the stock market.

    We have tried to keep faith with our shareholders. We are a profit oriented company. In 2005, nahcoaviance was privatized and subsequently listed on The Nigerian Stock Exchange in 2006. The company is now owned by over 80, 000 shareholders, including two international airlines – Air France and Lufthansa; as well as local investors; Sycor Private Investment Limited and Rosehill Group Nigeria Limited. The company’s stock exchange symbol is “Nahco”.

    We have always place the interest of our shareholders first and we try to satisfy them. We pay dividends. Though the shareholders will always ask for more. We have the confidence of our shareholders. The performance of the company in the stock exchange is ok.

    NAHCo has a strong alliance with aviance. How has that impacted your business?

    Nahco has developed strategic global alliances through its membership of aviance, the alliance of 10 reputable airport service providers operating from 112 stations in 17 countries. We have a cordial relationship with our partners and we have abided by the MoUs we have with them. The partnership has made us a global player and helped us to maintain international standards. The partnership has helped to train our staff.

    How much has the company invested on training and equipment?

    Prior to transformation the budget for training and equipment was small. But, we have increased that now significantly.

    We have invested more than $50 million in equipment and modernising our warehouses. Training has helped us to retain our international clients. In the last three to four years, we have invested more than N600 million on local and international training of our staff. We are a service provider and so, training is key. We provide value and build value through training.

    When I took over as the Chief Executive of the company, most of the company’s equipment were more than 20 to 30 years old. In the last three years we have invested heavily in equipment and I am proud to say that our equipment are now less than three years old.

    What is your market share of the ground handling operation market?

    There are many airlines that fly into Nigeria. We remain the leader in the market. We have achieved this through innovation, trust and integrity.

    We are the first company to expand facilities and pursue certification. Our competence and integrity have helped us to remain the leader in the market. We are passionate about service as a company. We will continue to leverage on improved services as a way of retaining our position as a leader in the service sector. This has helped us to maintain a leading position.

    We control 85 per cent of the ground handling operations. The company serves more than 35 airlines at seven airports across Nigeria, with plans to expand operations to other African countries.

    What are the biggest challenges?

    Infrastructure at most of the airports. Power supply is the biggest challenge. It has increased the cost of operations. We are hopeful that with privatisation of the power sector, things will improve. We are also recommending to the government that there should be an independent power project for the airports. This will enhance power supply to the airports.

    Also as a leader in ground handling operations in Nigeria, we are the target of attacks by our competitors We are, however, not averse to healthy competition.

     

  • Blackout imminent as NLC issues seven-day ultimatum

    Blackout imminent as NLC issues seven-day ultimatum

    THE southern part of the country may be plunged into darkness as the Nigeria Labour Congress (NLC) at the weekend gave a seven-day ultimatum to the Federal Government and investors in the power sector.

    The union is asking the government and investors to resolve issues on the working condition of workers of the defunct Power Holding Company of Nigeria (PHCN).

    The ultimatum lapses next Friday after which the union vowed to act if government fails to meet up with its demands.

    At a meeting with the officials of the Nigeria Union of Electricity Employees (NUEE) held in Akure, Ondo State, NLC said government should address the issues raised before the ultimatum in order to guarantee industrial peace and harmony in the power sector.

    The meeting was attended by NLC Executives from 14 states in the Southwest, South South, Kwara and Kogi States.

    A communique read by the Chairperson of NLC in Ondo State, Mrs. Bosede Daramola, at the end of the meeting frowned at the epileptic power supply in the country.

    It lamented the alleged exploitation of the masses by the buyers of the electricity distribution companies.

    Besides, the workers said the ongoing action of the new investors to de-unionise workers in the power sector was unacceptable, and called on the Federal Government to caution the investors.

    Part of the Communique reads “ The meeting in session condemn in strong terms the victimization of labour leaders and the failure of the federal government to call the investors in the power sector to order in tandem with the tripartite agreement reached with the organised labour on January 13 so as to promote industrial harmony which is key to our national productivity”.

    “The meeting in session called on the federal government and all the companies to as a matter of national interest for a prosperous economy address all the issues canvassed within seven days from the date of this communique in order to guarantee industrial peace and harmony in the power sector as the labour movement will resist any attempt to balkanise the movement by either individual or group in whatever disguise or name.

    “That the labour movement should not be held responsible for any action taken to drive home their demands, if the government fails to address the issues after the expiration of the seven-day ultimatum.”

    The unions urged the federal government to as a matter of urgency direct the recall of all union leaders disengaged as a result of transfer of ownership of the power sector.

    The General Secretary of NUEE, Comrade Joe Ajero, said the investors in the power sector had been making life miserable for members of the union.

    Ajero, who spoke through the Central Executive Committee member, Benson Okorodudu, said the investors had been trying to ensure that the workers do not have a voice in the society.

    He said those that had laboured to keep the system going and agreed with government on the privatisation were being made to suffer as their entitlements were not paid to them.

     

  • Fed Govt shops for N200b to settle PHCN’s debts

    Fed Govt shops for N200b to settle PHCN’s debts

    The Nigeria Electricity Liability Management Company (NELMCO) yesterday said it is shopping for N200 billion seed fund. It said the fund will give it an edge during negotiation for discounts in the course of paying for liabilities to the defunct Power Holding Company of Nigeria’s (PHCN) creditors.

    Its Managing Director, Mr. Sam Agbogun made this know at a briefing in Abuja.

    He said: “The seed money here is to enable NELMCO take advantage of negotiated amount. I am hoping (that) if we have that, it will give us a strong bargaining power to tell our creditors to give us some discounts. For example, if someone is owed N100million, you can seek to pay him N80million. This is why we need the money somewhere to pay instantly.”

    Commenting on the challenges the company is grappling with, he said there is delay in the transfer of PHCN Supernnuation Fund to NELCOM by the Bureau of Public Enterprises (BPE).

    He said the Fund that was created to take care of PHCN pensioners as they migrate to this scheme.

    Agbogun said: “Why we are concerned about this fund is that we are aware that there is about 2million euro of the funds in the account and that is a huge amount of money if it is converted to naira.”

    Another challenge, according to him, is that of PHCN pensioners’ harmonisation exercise that will result in about 50 per cent increase in monthly pension obligations.

    The liquidation of the PHCN Superannuation Fund going forward, he said, remains a big challenge.

    Agbogun expressed concern over the influx of litigation against the company, stressing that over 3,500 cases have been transferred to NELCOM.

    He raised the alarm over the company’s challenges from inadequate budgetary provision to offset legacy debts, power purchasing agreement, unpaid bills and other obligations.

    Asked to state the deficit between the budget for payment of pension and the actual amount required, he said N16 billion per annum is required for payment while there is only N14 billion in the 2014 Appropriation Act.

  • Hope dims for ex-PHCN workers’entitlements

    About five months after their disengagement, some former Power Holding Company of Nigeria (PHCN) workers may still have to wait before they get their entitlements.

    National Union of Electricity Employees (NUEE) Secretary Joe Ajaero said the delay is caused by the Federal Government.

    He blamed what he called the non-challant attitude of the Federal Government for the development.

    Ajaero said: ‘’We have enough evidence that many of the workers were excluded from the N385billion severance package paid to the workers of PHCN. The possibility of getting the entitlements paid to the workers soon is remote in a corrupt country like Nigeria. We understand that the money has been put in fixed and interest is being collected on it. Based on this, it would be pretty difficult to get the money paid to the affected workers.”

    According to him, the union has been making efforts to ensure payment of the money owed the workers, to no avail

    ‘’We have been pushing for the payment of the money. But it appears that the government is not willing to fulfil all the agreements reached with the workers during privatisation. We see it as a breach of contract, hence our resolve to fight for the welfare of our colleagues. Though we have not given up the struggle, the workers are not sure of getting their money soon.’’ he added.

    Ajaero noted the restiveness the unpaid benefits had caused in the sector, noting that the workers should not be blamed as they have not been paid since last January, when the government reached an agreement with them on the issue.

    The Minister of Labour and Productivity, Chief Emeka Wogu, convened a meeting on January 13, this year between the government and labour where a fresh agreement was reached.

    The meeting followed the threat by the NUEE to cripple the sector over unpaid benefits to the former PHCN workers and victimisation of union leaders, among other agreements reached with them.

  • Oshiomhole protests PHCN ‘extortion’

    Oshiomhole protests PHCN ‘extortion’

    Edo State Governor Adams Oshiomhole has kicked against the N750 monthly fixed charge collected by the Benin Electricity Distribution Company (BEDC).

    He said it amounts to extortion and exploitation of electricity consumers.

    The governor spoke at a meeting with the management team of BEDC, led by Mrs Funke Osibodu, the Benin Forum, led by Chief David Edebiri and Civil Society Organisations.

    “Madam, you will recall the day I first received you in my office. I think I mentioned that it is important that you improve on your service delivery to consumers and failure to do so will spark off a revolt from consumers. This is exactly what is happening today.

    “As the people’s representative, I cannot be quiet because it is certain that what is being done in Edo does not exist in other states.”

  • N370bn has been paid to PHCN workers, says BPE

    The Bureau of Public Enterprises (BPE) said a total of N370 billion had so far been remitted for the payment of former employees of the defunct Power Holding Company of Nigeria (PHCN).

    This is contained in a statement made available to the newsmen and signed by the Head, Public Communications of the Bureau, Mr Chigbo Anichebe, on Monday in Abuja.

    NAN report quoted the statement as saying that the committee on the settlement of labour liabilities in the power sector chaired by the Permanent Secretary, Federal Ministry of Power, Dr Godknows Igali, made the payments through the Office of the Account General of the Federation (OAGF).

    “The Director-General of the BPE, Mr Benjamin Dikki, has stated that 45,136 staff out of 47,913 staff have been verified to date for payment.

    “A total of N370 billion has been remitted to the OAGF for payment of the former employees of the defunct PHCN.

    “Also after the bureau’s nationwide field verification of the possible 4,194 PHCN retirees, 2,931 or their next of kin have been verified leaving 1,163 yet to be verified.

    “The verification exercise is the bureau’s way of making extra effort to ensure that the outstanding pensioners were verified and paid their entitlements expeditiously,’’ it said.

    According to the statement, the pensioners or their next of kin, who had not been verified, are advised to do so before April 2.

    The commitment of the Federal Government to resolving labour issues in the power sector was reiterated in the statement.

    “President Goodluck Jonathan made it a priority and demonstrated great commitment in resolving labour issues in the power sector committing the entire proceeds realised from the sale of power assets for the payment of the workers’ terminal benefits.

    “Government had at the initial stage of the transaction, released N57 billion to take care of the workers’ pension.

    “This was coming after the government had increased the workers’ salary by 50 per cent and regularised all casual staff of the defunct PHCN.

    “Government had also released over N6 billion to the union leadership as check-off dues from the staff entitlements,’’ it stated.

  • N4.7b money laundering charge: PHCN scuttles hearing of Babalakin’s no case submission application

    N4.7b money laundering charge: PHCN scuttles hearing of Babalakin’s no case submission application

    The epileptic supply of electricity to  Lagos State High Court, Ikeja, last Friday stalled the hearing of no case submission filed by Bi- Courtney Chairman, Dr. Olawale Babalakin.

    The Economic and Financial Crimes Commission (EFCC)  had charged Babalakin, Okoh and their firms Bi-Courtney Limited; Stabilini Visioni Limited and Renix Nigeria Limited to court over an alleged illegal transfer of N4.7b on behalf of convicted former Delta State Governor, James Ibori.

    The defendants are facing a 27-count charge bordering on money laundry, conspiracy, retention of proceeds of a criminal conduct and corruptly conferring benefit on account of public action.

    They were charged before the court presided by Justice Lateef Lawal-Akapo.

    The first attempt by Babalakin to argue his no case submission application was stalled at the last appearance in court owing to the fact that counsel to the EFCC, Rotimi Jacobs (SAN), had health issues.

    Justice Lawal-Akapo had then adjourned the matter till last Friday for argument.

    However, epileptic supply from the PHCN to the High Court of Lagos State, Ikeja also prevented the judge from sitting last week.

    Consequently, Justice Akapo-Lawal had to fix  April 30, 2014 for hearing of argument on the pending application.

    At the last proceeding, the judge said he only got the case file about 20 minutes before the commencement of the proceeding.

    He informed both parties on the need to study the details of the charges  in order to be on top of the situation.

    The defendants had in various applications filed by their counsels challenged the money laundering charges preferred against them by the agency.

    They  also queried the jurisdiction of the court to try them on the alleged offences on the ground that it is only the Federal High Court that can try them.

    They had in the same applications argued that the EFCC did not secure the fiat of the Lagos State Attorney-General to commence the trial at the Lagos High Court.

    The prosecution counsel, led by Rotimi Jacobs (SAN) told the court that he had filed objections to the applications.

     

  • PHCN pensioners demand over N16b arrears, severance benefits

    PHCN pensioners demand over N16b arrears, severance benefits

    • May begin nationwide protest today

    About 20, 000 electricity sector pensioners of the defunct Power Holding Company of Nigeria (PHCN) have given the Federal Government up till midnight today to pay their N16 billion outstanding pension arrears, gratuities, death benefits, among others.

    The pensioners under the umbrella- body of the Nigeria Union of Pensioners (NUP), electricity sector, also want the government, through the Nigeria Electricity Liability Management Limited (NELMCO), to pay the monthly pensions of their members for January and last month.

    They warned that the failure to pay the outstanding areas would result in a protest.

    President, NUP, Comrade Temple Ubani, said they were aware that the government had paid for the same period, other pensioners through the Pension Transitional Administration Department (PTAD).

    He said they were informed by NELMCO that NEPA/PHCN Pension Fund is classified as Capital Budget and domiciled in the Central Bank of Nigeria, where it is released quarterly to make for the monthly payment of pensioners. They criticised the arrangement as cumbersome and unwieldy.

    He noted that it is common knowledge that salaries and pensions are overhead expenses normally classified as recurrent budget and released monthly as first-line charge.

    “We have repeatedly experienced delays in payments during the first month of each quarter of the year as a result of the uncooperative attitude between the Ministry of Finance, the Budget Office and the Accountant-General’s Office, thereby making payment of our stipends very rigorous and tasking for NELMCO, every month.

    “Our union and NELMCO management have sought the intervention of relevant authorities, including the presidency and the National Assembly to redress these anomalies to no avail.

    “It is also on record that many NEPA/PHCN retirees have not been paid their outstanding terminal benefits.These include gratuities, arrears of pensions, death benefits to the next of kin of deceased workers and retirees and monetisation arrears. Others are harmonisation entitlements, electricity rebate benefits, spanning over several years, and different forms of verification exercises conducted by different Federal Government agencies.

    “In 2013 the Minister of Power, Prof. Chinedu Nebo informed the whole world that government had set aside over N16billion for the settlement of these liabilities. Unfortunately all targeted payment dates did not materialise and some beneficiaries have since died without getting their benefits,” he said.

    Ubani pointed out that they have taken notice of the concerned intervention of some critical stakeholders, like the Chairman, Senate Committee on Power, Senator Phillip Aduda and the Director-General of PTAD, Ms. Nellie Mayshak, who have pleaded through the Managing Director of NELMCO, Dr. Samuel Agbogun, to give them some time.

    He said it is expected that their intervention shall facilitate the payment of their January and February Pensions by that date, and address other outstanding and residual matters.

    “Nonetheless, this memo shall serve as due notice to Government and NEPA/PHCN retirees, that in the event that arrears of pensions are not paid by 12 midnight on Wednesday, March 12, 2014, Government should hold its relevant agencies responsible for whatever reactions the pensioners, the widows and orphans of deceased power sector workers may decide to embark on,” he said.

  • Electricity workers protest non-payment of salary arrears.

    Electricity workers protest non-payment of salary arrears.

    Administrative activities were grounded at the Ondo town Business District (OBD) office of the defunct Power Holding Company of Nigeria (PHCN)now being controlled by Benin Electricity Distribution Company (BEDC).

    This followed a protest embarked upon by contract staffs working in the security department of the organization.

    The organization’s main gate was shut by the protesting workers who gathered in groups discussing the development in hushed tones
    .
    The spokesman of the aggrieved workers, Oluwole Olowu, who claimed to be the Chief Security
    Officer (CSO) of the organization, said they embarked on the protest to demand for the payment of their five months salary.

    The workers numbering about 50 dressed in Nigerian legion uniform and carried  placards with various inscriptions such as “BEDC pay us our salary,” “Our children are hungry” “we want to pay our children school fees”  “we want to pay our house rent”and others.

    According to Oluwole, the workers had written letters to the company informing them of their decision to embark on peaceful demonstration, adding that they have also written to the Divisional Police Officer (DPO) in charge of Yaba Police station in Ondo town to inform them ahead of the protest.

    He however alleged some top officials of the organization for being the brains behind the delay in payment of their salary arrears.

    He vowed that the workers would not except something tangible was done by the zonal district
    of the company at Benin City, Edo State Capital.

    The Ondo State Public Relations Officer (PRO) of BEDC, Mr. Oghale Eduzaire, said the problem is in-house which affected not only the security officers alone but all casual workers in the company including members of the National Youth Service Corps (NYSC) serving in the company.

    He said the Manager of the company has been away to Benin-city, Edo State for three days to resolve the problem, assuring the protesters that the problem would be resolve within the next few days.

    Orghale however reiterated the determination of the company towards the improvement of the welfare of the workers while calling on them to always embrace dialogue in resolving any issue with the organization.

    As at press time, senior officials of the company including customers were not allowed to enter the premises of the company.

    The road leading to the area was barricaded by the protesting workers.