The Federal Government, has approved a new monthly wage bill of N11billion for employees of the Power Holding Company of Nigeria (PHCN).

Vice-President Namadi Sambo stated this on Monday in Abuja while declaring open a two-day Power Sector Reform Workshop at the State House.

He said that the new wage bill followed the approval of a 50 per cent increase in the salary structure of the staff of the company.

“As a further demonstration of our interest in the welfare of electricity workers, we have also favourably considered the recommendation for a 50 per cent increase in the salary structure of the PHCN staff, in spite of the enormous economic challenges of the moment.

“Suffice it to state that we inherited a huge wage bill of over N7 billion monthly for the PHCN staff.

“However, with the new increase, the monthly salary will escalate to over N11 billion. This figure is interestingly about the same amount the PHCN generates monthly.”

He noted that N57 billion was spent by the Federal Government on the payment of the monetised benefits to all PHCN employees.

He added that more than 99 per cent of the staff, both serving and retired, had received the benefits.

According to him, those with incomplete records or whose next of kin have not been ascertained, make up 0.9 per cent of those yet to be paid.

“Once each case is sorted out, the payment shall be made as enough funds still exist with the Central Bank of Nigeria for the settlement of this outstanding liability.”

Sambo said the Federal Government was committed to promoting the interest of electricity workers.

He disclosed that President Goodluck Jonathan had directed that, a percentage of shares in the PHCN successor companies being privatised, be reserved for the workers.

The Vice-President, assured the participants, of government resolve to appropriate adequate funds for the immediate payment of retirement benefits to all PHCN staff as soon as the unbundling programme was completed.

He stated that the ongoing Power Sector Reform had been embraced by Nigerians, the African Union and the International Community.

He revealed that the National Council on Privatisation had short-listed 40 firms that would benefit from the concessioning of hydro-power stations in the country.

Sambo further explained that 87 other companies would be short-listed for the thermal stations while 80 others would be lined up for the electricity companies.

He expressed optimism that the change of the status of the Federal Government from being the sole owner of the 17 generation and distribution companies, to a minority shareholder would benefit the country.

He described as instructive and revealing, a situation where most of the Federal Government’s plants did not produce up to half of their installed capacities whereas private electricity producers used up their installed capacities.

“The Power Sector Reform will change Nigeria’s socio-economic landscape, far more than we have witnessed in telecommunications sector following the sector’s liberalisation.

“The power sector reform will not only provide Nigerian people with uninterrupted and quality electricity, but will also attract Foreign Direct Investment, create employment and business opportunities, enhance the living standards of electricity workers, like those of their counterparts in the telecoms sector, enable power sector employees to work with state-of-the-art technology and to regularly undergo domestic and international courses.

“It is obvious that the reform will create thousands of job opportunities for the electricity workers through the development of new power infrastructure that will include but not limited to the NIPP 10 new power plants, 4,000km of transmission lines and several hundreds of substations.”

Sambo, therefore, assured that the power reform was “a win-win deal” for all, and urged Nigerians, including trade unions in the sector to embrace the reform programme wholeheartedly.

On electricity tariff, the Vice President said Nigerians should always be ready to pay the appropriate tariff in view of the huge investments being made by both government and the private investors.

In his remarks, the Chief Negotiator/Conciliator between the Federal Government and the Labour Unions of PHCN, Comrade Hassan Sunmonu, commended the Government for implementing the agreements reached between it and the unions.

Sunmonu who is also the Secretary-General, Organisation of African Trade Union Unity (OATUU), challenged Nigerian leaders to bring tens of millions of Nigerians out of poverty, and another 30 million into the middle class, within the next 20 years.

“With our enormous human and natural resources, yes, it is possible. If we fix our power sector, yes it is possible.”

Goodwill messages were delivered at the occasion by Ministers of Labour and Productivity, Power and Trade Unions’ leaders.