Oil & Energy

Rivers Electricity Workers Protest Planned Privatisation

Published

15 years ago

December 20, 2010

Employees of the Power Holding Company of Nigeria (PHCN) in Rivers State joined their counterparts in other parts of the country to protest Thursday last week against the Federal Government planed privatization of the company.

Workers in the thirteen business units in the state who had coverage in the morning at the Diobu Business Unit premises along Ikwerre Road with plan to protest to the Rivers State Government House and the State Assembly Complex but were however prevented from matching in the streets by security agents.

Our power reporter who covered the event said as early as 8.00 am workers had already gathered at the Diobu Business Unit premises but leadership of National Union of Electricity Employees (NUEE) were still discussing with the state Police Command for permission to carry out the rally and that until 11.00 am they could not obtain permission, instead, the presence of Police men where building up at the venue.

The PHCN workers chanting solidarity songs wielded plycards with the inscriptions: “No to privatization, u\yes to Liberalisation”, “Pay us the balance of 137 per cent of our salary increase”, “Casualisation causes casualty”, “We say no to Prof. Nnaji’s Wayo, lie, lie”, “Casualisation is modern day slavery”, “FG Regularise the 10,000 verified casuals in PHCN”, Publish the Power Sector Report and tell Nigerians the truth”, amongst others.

Comrade Micheal Mbari, Secretary of Rivers State branch of NUEE who spoke to The Tide accused the government of hiding the truth about pHCN privatization from Nigerian masses.

The NUEE scribe explained that the workers are not against the reform in the sector but rejected privatization as it would mean selling off the company to the friends and cronies of those in power. “We have severally advised the federal Government to liberalise the power sector so that it would open more opportunities for private investors to come and compete with PHCN instead of outright sale of PHCN”, he stated.

He noted that the power sector remains a key sector that galvanises the industralisation as well as the socio-economic development of any nation stressing that it would be wrong to take such a strategic sector from the hands and control of the government and hand it over to overzealous private investors as the step will lead to more woes to Nigerian masses who will not be able to afford the high tariffs by profit driven private investors.

According to him, many countries in the world tried the approach and it failed. “South Korea, Venezuela, South Africa, Iran, Agentina tried it and failed, so why try it here in Nigeria by privatizing PHCN?, he querried.

The Union claimed that NITEL, NAFCON, ALSCON, Nigerian Airways, Daily times that were privatized under Chief Olusegun Obasanjo administration have collapsed and called on President Goodluck Jonathan to retrace the step of FG on PHCN privatization for the interest of Nigerian masses.

“137 per cent balance of our salary increase is still lying there with nobody addressing it, 10,000 casual staff of the company that were verified is not being addressed and other promises not fulfilled, yet the government is hell-bent on privatizing the company”, said Comrade Mbari.

He said the workers decided to protest so that Nigerian masses will know the plight of PHCN workers.

Comrade Benibo Benjamin NUEE Chairman, Diobu Business Unit described the interference of the security agents in the workers’ peaceful rally as undemocratic stating that nothwithstanding the Police restriction, the rally was a huge success as the workers came out enmass and their message have been sent out to the Nigerian masses.

He called on the government to also remove the heavy presence of the Police and Military men whom he said have taken over the installations of the company in the state.

The security agents wisked off three journalists who were covering the event and also seized their cameras but about 45 minutes later, they were brought back to the scene.

An assistant Commissioner of Police, Habilla Joshakt who addressed the crowd said the journalists were not arrested stressing that the workers were not permitted to match in the streets to avoid criminals from hijacking the rally to cause problems in the state.

“If we had seen your letters or permission, we would have organized security contingences to monitor your movements. It took us sleepless nights for us to get to where we are in the state today security wise and would not take any chances that can disrupt the security situation in the state”, he said.

The Tide gathered that the rallies were disrupted by security agents especially in Delta, Ondo, Ekiti, Ogun amongst other states where protesters were arrested.

Chris Oluoh

Oil & Energy

No Subsidy In Oil, Gas Sector — NMDPRA

Published

2 weeks ago

September 8, 2025

The Tide

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said there are no subsidies in the oil and gas sector as Nigeria operates a completely deregulated market.

The Director, Public Affairs Department, NMDPRA, George Ene-Italy, made this known in an interview with newsmen, in Abuja, at the Weekend.

Reacting to the recent reports that the Federal Government has removed subsidies or increased the price of Compressed Natural Gas (CBG), Ene-Italy said, “What we have is a baseline price for our gas resources, including CNG as dictated by the Petroleum Industry Act”.

He insisted that as long as the prevailing CNG market price conforms to the baseline, then the pricing is legitimate.

Furthermore, the Presidential – Compressed Natural Gas Initiative (P-CNGI) had said that no directive or policy had been issued by the Federal Government to alter CNG pump prices.

The P-CNGI boss, Michael Oluwagbemi, emphasised that the recent pump price adjustments announced by certain operators were purely private-sector decisions and not the outcome of any government directive or policy.

For absolute clarity, it said that while pricing matters fell under the purview of the appropriate regulatory agencies, no directive or policy had been issued by the Federal Government to alter CNG pump prices.

The P-CNGI said its mandate, as directed by President Bola Tinubu, was to catalyse the development of the CNG mobility market and ensure the adoption of a cheaper, cleaner, and more sustainable alternative fuel and diesel nationwide.

Oil & Energy

‘Nigeria’s GDP’ll Hit $357bn, If Power Supply Gets To 8,000MW’

Published

2 weeks ago

September 8, 2025

The Tide

The Managing Director, Financial Derivatives Company Limited (FDC), Bismarck Rewane, has said that Nigeria’s Gross Domestic Product (GDP) could rise to $357b if electricity supply would increase from the present 4.500MW to 8,000MW.

Rewane also noted that Nigeria has spent not less than $30 billion in the power sector in 26 years only to increase the country’s power generation by mere 500MW, from 4,500 MW in 1999 to 5,000MW in 2025 though the sector has installed capacity to generate 13,000 MW.

In his presentation at the Lagos Business School (LBS) Executive Breakfast Session, titled “Nigeria Bailout or Lights Out: The Power Sector in a Free Fall”, Rewane insisted that the way out for the power sector that has N4.3 trillion indebtedness to banks would be either a bailout or lights out for Nigeria with its attendant consequences.

He said, “According to the World Bank, a 1.0 per cent increase in electricity consumption is associated with a 0.5 to 0.6 per cent rise in GDP.

“If power supply rises to 8000MW, from current 4500MW, the bailout shifts money from government into investment, raising consumption and productivity. And, due to multiplier effects, GDP could rise to $357 billion.”

The FDC’s Chief Executive said “in the last 30 years, Nigeria has invested not less than $30 billon to solve an intractable power supply problem.

“The initiatives, which started in 1999 when the power generated from the grid was as low as 4,500MW, have proved to be a failure at best.

“Twenty-six years later, and after five presidential administrations, the country is still generating 5,000MW. Nigeria is ranked as being in the lowest percentile of electricity per capita in the world.

“The way out is a bailout, or it is lights out for Nigeria”, he warned.

He traced the origin of the huge debts of the power sector to its privatisation under President Goodluck Jonathan’s administration, when many of the investors thought they had hit a jackpot, only to find out to their consternation that they had bought a poisoned chalice.

Rewane, who defined a bailout as “injection of money into a business or institution that would otherwise face an imminent collapse”, noted that the bailout may be injected as loans, subsidies, guarantees or equity for the purpose of stabilising markets, protect jobs and restore confidence.

He said, “The President has promised to consider a financial bailout for the Gencos and Discos. With a total indebtedness of N4.3 trillion to the banking system, the debt has shackled growth in the sector.”

Rewane warned that without implementing the bailouts for the power sector, the GENCOs and DISCOs would shut down at the risk of nationwide blackout.

Rewane, however, noted that implementing a bailout for the power sector could have a positive effect on the country’s economy if Nigeria’s actual power generation could rise from today’s 4,500 MW to around 8,000 and 10,000 MW.

The immediate gains, according to him, would include improved power generation and distribution capacity, more reliable electricity supply to homes and businesses as well as cost reflective tariffs.

Oil & Energy

NEITI Blames Oil, Gas Sector Theft On Mass Layoff

Published

2 weeks ago

September 8, 2025

The Tide

The Nigeria Extractive Industries Transparency Initiative (NEITI) has blamed the increasing crude oil theft across the nation on the persistent layoff of skilled workers in the oil and gas sector.

The Executive Secretary, NEITI, Orji Ogbonnaya Orji, stated this during an interview with newsmen in Abuja.

Orji said from investigations, many of the retrenched workers, who possess rare technical skills in pipeline management and welding, often turn to illicit networks that steal crude from pipelines and offshore facilities.

In his words, “You can’t steal oil without skill. The pipelines are sometimes deep underwater. Nigerians trained in welding and pipeline management get laid off, and when they are jobless, they become available to those who want to steal crude”.

He explained that oil theft requires extraordinary expertise and is not the work of “ordinary people in the creeks”, stressing that most of those involved were once trained by the same industry they now undermine.

According to him, many retrenched workers have formed consortia and offer their services to oil thieves, further complicating efforts to secure production facilities.

“This is why we told the Nigerian Content Development and Monitoring Board (NCDMB) to take this seriously. The laying off of skilled labour in oil and gas must stop”, he added.

While noting that oil theft has reduced in recent times due to tighter security coordination, Orji warned, however, that the failure to address its root causes, including unemployment among technically trained oil workers would continue to expose the country to losses.

According to him, between 2021 and 2023, Nigeria lost 687.65 million barrels of crude to theft, according to NEITI’s latest report. Orji said though theft dropped by 73 per cent in 2023, with 7.6 million barrels stolen compared to 36.6 million barrels in 2022, the figure still translates to billions of dollars in lost revenues.

Orji emphasised that beyond revenue, crude oil theft also undermines national security, as proceeds are used to finance terrorism and money laundering.

“It’s more expensive to keep losing crude than to build the kind of monitoring infrastructure Saudi Arabia has. Nigeria has what it takes to do the same”, he stated.