President Goodluck Jonathan on Wednesday approved the sum of N384bn for the payment of severance benefits to employees of the Power Holding Company of Nigeria who will be disengaged from the services of the company.
This was in fulfilment of the agreement reached between the labour unions in the power sector and the Federal Government during a recent peace talk brokered by the Secretary to the Government of the Federation, Senator Pius Anyim.
Controversies about the payment of the severance package, the amount to be paid and the number of beneficiaries have been core issues hindering the privatisation of power firms in the country.
About 50,000 PHCN workers and 4,000 whose employment has not been regularised will be paid off from the amount to pave the way for the full privatisation of the successor companies of PHCN.
The implication of this is that the workers that will be absorbed by the new owners of the successor companies will operate under new conditions of service in line with agreement with Labour.
The ministers of Labour and Productivity, Chief Emeka Wogu; and Power, Prof. Chinedu Nebo, disclosed the President’s approval to State House correspondents in Abuja on Wednesday.
Wogu said the Federal Government would spend N384bn on the severance package, which payment will start on Thursday (today).
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