Connect with us

Oil & Energy

Fear Grips Power Company Staff …As Contract Ends Next Week

Published

on

Morbid fear now grips
workers in the generation (GENCOs) and distribution companies (DISCOs) across the country as their six months contract work agreement terminates next week.
The Tide investigations show that the new GENCOs and DISCOs which bought over the defunct Power Holding Company of Nigeria (PHCN) have since begun strict assessment of their staff performances and have penciled down thousands of their staff for disengagement.
Though when contacted, the Acting General Manager Public Affairs of Port Harcourt Electricity Distribution Company (PHEDC), Mr Obi Onuwah, declined comment on the pending loom, but a reliable source confirmed that the company has since last month started performance assessment and authoritatively revealed that over 1,000 staff of PHEDC may be laid off.
Our correspondent who visited some Business Units of the company reports that sack fever has gripped the staff whose hopes now hang in the balance.
“Honestly, the issue is the biggest worry in my unit. Most of us have embarked on fasting and prayer because only God can retain one here”, said a worried employee in the Diobu Business Unit.
The lady staff who pleaded anonymity said nobody is free including the big officers in the unit.
At the Borikiri Business Unit, another male staff said, “that is what the staff are bothered about day and night.”
It was gathered that some staff have started serious lobbying using their influential contacts to see if they could scale through.
At Rumuola Business Unit, a staff told The Tide that, some have already gone spiritual – consulting native doctors, while others consult their church priests for prayers and others who have big people in the government, particularly those who were instrumental in the sale of PHCN to help save their jobs.
While handing over to power investors who bought over the defunct PHCN, on November 1st 2013, the Federal Government ordered the retrenchment of about 20,000 out of over 50,000 PHCN workers.
Those staff who survived the initial retrenchment exercise were re-engaged by the private investors on the condition that their performances would be reviewed after six months which expires this April (next week) to determine if they would continue or go.
To survive the impending sack The Tide investigation showed that the new staff particularly the middle and junior cadre work under all manner of hash condition without any iota of complaint to avoid attracting issues that could endanger their stay.
This was quite unlike before when they were working under the defunct PHCN when the usual  laxity associated with government work was the order of the day.
Early this month, our correspondent revealed that a secret cocktail party was organised in Port Harcourt by PHEDC where the Business Unit managers had their performances re-examined.
The party which was organised quietly without involving the press was used to honour some business managers and other senior managers who performed creditably while those who could not meet the required high record were reprimanded.
One unique thing according to our correspondent was that revenue generation was the major concerned of the new investors.
Our source further said that unlike the period of PHCN, there was a remarkable improvement in virtually all business units in terms of revenue generation.
This explains why in the recent past, the issue of crazy bills was the complaints of consumers every where to enable the units meet their high revenue targets.
While remarkable improvement was recorded in revenue generation, by the new investors, some analysts insist that the new investors must listen to the lamentations of power consumers over poor electricity supply.
Mr Johny Nwobodo, a Port Harcourt based businessman said assessment based only on revenue is not enough. “It must include workers’ welfare. It must most importantly take into cognizance the quality and standard of service delivery to the public”.
Another business manager, Nduka Clarice advised the Power investors on the danger of sacking more workers after the six months contract.

Minister of Power, Prof. Chinedu Nebo (left), declaring open the 7th Annual Nigerian Association for Energy Economics and International Association for Energy Economics conference in Abuja, recently.

Minister of Power, Prof. Chinedu Nebo (left), declaring open the 7th Annual Nigerian Association for Energy Economics and International Association for Energy Economics conference in Abuja, recently.

Chris Oluoh

Continue Reading

Oil & Energy

NERC, OYSERC  Partner To Strengthen Regulation

Published

on

THE Nigerian Electricity Regulatory Commission (NERC) has stressed the need for strict adherence to due process in operationalizing state electricity regulatory bodies.
It, however, pledged institutional and technical support to the Oyo State Electricity Regulatory Commission (OYSERC).
The Chairman, NERC, Dr Musiliu Oseni, who made the position known while receiving the OYSERC delegation, emphasised that the establishment and take-off of state commissions must align fully with the law setting them up.
Oseni said that the NERC remains committed to partnering with State Electricity Regulatory Commissions (SERC) to guarantee their institutional stability, operational effectiveness and long-term success.
He insisted that regulatory coordination between federal and state institutions is critical in the evolving electricity market framework, noting that collaboration would help to build strong institutions capable of delivering sustainable outcomes for the sector.
Also speaking, the Acting Chairman, OYSERC and leader of the delegation, Prof. Dahud Kehinde Shangodoyin, said that the visit was aimed at formally introducing the commission’s acting leadership to the NERC and laying the groundwork for a productive working relationship.
Shangodoyin said , the acting members were appointed to provide direction and lay a solid foundation for the commission during its transitional period, pending the appointment of substantive members.
“We are here to formally introduce the acting leadership of OYSERC and to establish a working relationship with NERC as we commence our regulatory responsibilities,” he said.
He acknowledged NERC’s readiness to provide technical and regulatory support, particularly in the area of capacity development, describing the backing as essential for strengthening the commission’s operations at this formative stage.
“We appreciate NERC’s willingness to support us technically and regulatorily, especially in building our capacity during this transition,” he added.
Continue Reading

Oil & Energy

NLC Faults FG’s 3trn Dept Payment To GenCos

Published

on

The Nigeria Labour Congress and the Association of Power Generation Companies have engaged in a showdown over federal government legacy debt.
NLC president Joe Ajaero has faulted the federal government’s move to give GenCos N3 trillion from the Federation account as repayment for a power sector legacy debt, which amounts to N6.5 trillion.
In a statement on Thursday, Ajaero said the Federal Government proposed the N3 trillion payment and the N6 trillion debt as a heist and grand deception to shortchange the Nigerian people.
“Nigerians cannot and should not continue to pay for darkness,” Ajaero stated.
Meanwhile, the Chief Executive Officer of the Association of Power Generation Companies, APGC, Dr. Joy Ogaji, said Ajaero may be ignorant of the true state of things, insisting that the federal government is indebted to GenCos to the tune of N6.5 trillion.
She feared the longstanding conflict could result in the eventual collapse of the country’s power.
According to her, the federal government’s N501 billion issuance of power sector bonds is inadequate to address its accumulated debt.
Continue Reading

Oil & Energy

PENGASSAN Rejects Presidential EO On Oil, Gas Revenue Remittance  ……… Seeks PIA Review 

Published

on

The Natural Gas Senior Staff Association of Nigeria(PENGASSAN) Festus Osifo, has faulted the public explanation surrounding the Federal Government’s recent oil revenue Executive Order(EO).
President of the association, Festus Osifo, argued that claims about a 30 per cent deduction from petroleum sharing contract revenue are misleading.
Recall that President Bola Ahmed Tinubu, last Wednesday, February 18, signed the executive order directing that royalty oil, tax oil, profit oil, profit gas, and other revenues due to the Federation under production sharing, profit sharing, and risk service contracts be paid directly into the Federation Account.
The order also scrapped the 30 per cent Frontier Exploration Fund under the PIA and stopped the 30 per cent management fee on profit oil and profit gas retained by the Nigerian National Petroleum Company Limited.
In his reaction, Osifo, while addressing journalists, in Lagos, Thursday, said the figure being referenced does not represent gross revenue accruing to the Nigerian National Petroleum Company Limited.
He explained that revenues from production sharing contracts are subject to several deductions before arriving at what is classified as profit oil or profit gas.
Osifo also urged President Bola Tinubu to withdraw his recently signed Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026.
He warned that the directive undermines the Petroleum Industry Act and could create uncertainty in the oil and gas industry, insisting that any amendment to the existing legal framework must pass through the National Assembly.
Osifo argued that an executive order cannot override a law enacted by the National Assembly, describing the move as setting a troubling precedent.
“Yes, that is what should be done from the beginning. You can review the laws of a land. There is no law that is perfect,” he said.
He added that the President should constitute a team to review the PIA, identify its strengths and weaknesses, and forward proposed amendments to lawmakers.
“When you get revenue from PSC, you have to make some deductibles. You deduct royalties. You deduct tax. You also deduct the cost of cost recovery. Once you have done that, you will now have what we call profit oil or profit gas. Then that is where you now deduct the 30 per cent,” he stated..
According to him, when the deductions are properly accounted for, the 30 per cent being referenced translates to about two per cent of total revenue from the production sharing contracts.
“In effect, that deduction is about two per cent of the revenue of the PLCs,” he added, maintaining that the explanation presented in the public domain did not accurately reflect the structure of the deductions.
Osifo warned that removing the affected portion of the revenue could have operational implications for NNPC Ltd, noting that the funds are used to meet salary obligations and other internal expenses.
“That two per cent is what NNPC uses to pay salaries and meet some of its obligations.The one you are also removing from the midstream and downstream, it is part of what they use in meeting their internal obligations. So as you are removing this, how are they going to pay salaries?” he queried.
Beyond the immediate impact on the company’s workforce, he cautioned that regulatory uncertainty could affect investor confidence in the sector.
“If the international community and investors lose confidence in Nigeria, it has a way of affecting investment. That should be the direction. You don’t put a cow before the horse,” he added.
According to him, stakeholders, including labour unions and industry operators, should be given the opportunity to make inputs at the National Assembly as part of the amendment process saying “That is how laws are refined,”
Continue Reading

Trending