Nigeria pays US$2.56bn severance packages to power company staff

ABUJA – After a prolonged crisis between members of staff of Power Holding Company of Nigeria (PHCN) and the government over the privatization of the nation’s sole electricity company, the Federal Government is now set to pay the US$2.56 billion severance package to finalize the sale of the company.

The payment is targeted at removing roadblocks in the privatization of 15 Electricity Generation Companies, GENCOS and Electricity Distribution Companies, DISCOs, which have been sold to private entities and require labour issues to be resolved before final payments are be made.

Nigeria pays US$2.56bn severance packages to power company staffPower minister Professor Chinedu Nebo dropped the hint during his official inspection to Egbin Power Station on Tuesday.

“Very soon your severance package or entitlement will hit your various accounts by June 17. We hope to start payment of workers benefit by June 17, which is the tentative date we are working on, we need a lot of support from workers in areas of adequate information on the forms given to them,” he said.

Nebo said the technical and implementation committees set up by the Federal Government to ascertain the amount to be paid have been working to ensure that accurate payments are made to workers.

The amount to be paid to each member of staff had become contentious leading to protests and disruption of services over the months.

The payment of severance package became necessary to ease the government out of its commitments to staff, who will at the end of the privatization, would no longer be staff of the company except when engaged by the new owners.

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